Vote or arbitration: postal standoff
Tashi Farmilo & Bonnie James
Local Journalism Initiative
Published in the Pontiac Journal on June 4, 2025.
OTTAWA – With mail delays continuing across the Pontiac, thestandoff between Canada Post and the Canadian Union of Postal Workers (CUPW) has entered a critical new phase.
On May 30, Canada Post asked the Minister of Labour to authorize a vote on its final offers, aiming to give Urban and RSMC (Rural and Suburban Mail Carriers) members the chance to vote directly on the proposed contracts. The company said that after nearly two years of negotiations, conciliation, mediation, and rotating strikes, a negotiated deal is no longer possible without employee input.
But on May 31, CUPW pushed back, rejecting the vote and instead inviting Canada Post to enter binding arbitration—where a neutral third party would deliver a final and binding
decision. “This is the most responsible and effective way to resolve this dispute,” said CUPW National President Jan Simpson, citing the public interest and long-standing bargaining challenges.
Canada Post responded the next day, declining the union’s proposal. In a public statement, the Crown corporation said arbitration would further delay resolution and would remove employees’ ability to decide on their future. The company reiterated that its offers directly reflect the seven recommendations made by the Industrial Inquiry Commission (IIC),
which earlier this year concluded that Canada Post is “effectively insolvent” and requires sweeping reform.
The final offer includes a 13.59% wage increase over four years, signing bonuses of $1,000 or $500 depending on classification, elimination of mandatory overtime, and enhancements to cost-of-living allowances. It also features guaranteed hours and benefits for part-time workers and a limited rollout of Dynamic Routing to improve efficiency. Several previously proposed changes—such as reductions to retiree benefits and health coverage for new hire —have been withdrawn.
Despite those concessions, CUPW rejected the offer and rescinded tentative agreements reached earlier this year. The union said it is committed to securing a fair contract
and urged Canada Post to act in the best interest of workers and the public by agreeing
to arbitration.
Meanwhile, the effects of the impasse are increasingly visible in rural communities like Pontiac. Residents report ongoing mail and parcel delays, sometimes lasting days. The nationwide CUPW overtime ban remains in place, compounding delivery backlogs. In rural areas with limited alternatives, the impact is particularly severe—affecting prescription deliveries, bill payments, small business shipping, and access to important documents.
Canada Post estimates that strike actions—including a 32-day disruption in late 2024 and renewed actions in May—have cost $208 million, contributing to a pre-tax loss of $841 million last year. Parcel volumes have plummeted by two-thirds compared to this time
in 2024.
While Canada Post waits for the Minister’s decision on the vote request, CUPW continues to advocate for arbitration. For Pontiac residents, uncertainty remains, and so do the delays.
