Canada Post presented its 55,000 employees with a new contract Wednesday, just over a day before a potential strike. It's unclear if the offer will prevent job action.

The Crown Corporation presented an offer to the Canadian Union of Postal Workers (CUPW) in Ottawa with a mediator after CUPW issued a 72-hour strike notice. Workers could strike as early as 12:01 a.m. Friday.

A four-year contract remains on the table for employees to consider, including new part-time carrier roles for weekend parcel delivery and "dynamic routing" at 10 sorting facilities, reported the Toronto Star, allowing for daily route adjustments based on volume.

Canada Post is offering a 13% total wage increase for current employees (6% this fiscal year), which is higher than the previously rejected 5% offer.

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Shortly before Canada Post presented its offer, CUPW president Jan Simpson stated on the union's website that they would carefully review the details of the latest offer.

“Further delay is in no one’s interest,” the Corporation said in a written statement to the Star, noting that Canadians are looking for certainty, moving forward.

A 32-day work stoppage last November caused delays in the delivery of approximately 190,000 passports and 1.65 million tax notices from the CRA.

A similar mail stoppage in 2018 went on for 35 days, prompting the passage of back-to-work legislation. Rotating strikes at the time cost the Crown corporation $110 million. 

Taxpayers are bailing out another Crown Corporation amid continued financial struggles. Canada Post, whose 55,000 workers went on strike last year, have gone radio silent following the handout.https://t.co/0Ta9SCwVlH

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Canada Post cited a recent report by mediator William Kaplan and emphasized the importance of preventing another strike. He writes the corporation is effectively insolvent with half-billion dollar annual losses, necessitating significant service reductions. 

Public Services and Procurement Canada announced a $1.034 billion loan in January to cover non-discretionary obligations through the 2025/26 fiscal year. The postal service has not been profitable since 2017.

It suggests community mailboxes, ending home delivery (except parcels), reducing post office locations by using franchises, and expanding parcel delivery to seven days a week with part-time staff.

The union slammed the findings, while the federal government has not commented. 

Without changes to its operating model, Canada Post forecasts larger, more unsustainable losses in future years. It delivered almost 5.5 billion letters in 2006, falling to roughly more than 2.2 billion in 2023.

A chapter president stated that Canada Post negotiators were awaiting Kaplan's report before presenting a new offer, suggesting its earlier release in November could have averted some of the previous 32-day strike that ended with federal intervention.

“They were waiting for the leverage they’d get from the Kaplan report. Now they’re showing their total disrespect for their employees and for Canadians,” he said.

Labour experts are uncertain if Canada Post's improved offer will prevent another strike.

Kaplan doubted a negotiated settlement or binding arbitration would resolve the Canada Post dispute, suggesting the Corporation might request a government-forced vote on its final offer.