Canada Post strike mediation halts as wage and business model disputes persist

Postal strike delays 10 million parcels as negotiations between Canada Post and CUPW reach impasse

Canada Post strike mediation halts as wage and business model disputes persist

The special federal mediator has temporarily suspended mediation between Canada Post and the Canadian Union of Postal Workers (CUPW), citing that the parties “remain too far apart” after intensive negotiations.  

Financial Post reports the announcement came from federal Labour Minister Steven MacKinnon on Wednesday as the nationwide mail strike entered its thirteenth day.   

MacKinnon expressed hope that the pause will allow both parties to reassess their positions and return to negotiations with renewed focus.  

“After several intensive days of negotiation, (the special federal mediator’s) assessment is that parties remain too far apart on critical issues for mediation to be successful at this time,” MacKinnon said in a post on X.   

To address the situation, MacKinnon called both parties to his office on Wednesday, emphasising that they bear full responsibility for the consequences of the ongoing conflict.  

He also made it clear that the federal government will not intervene by introducing back-to-work legislation.   

Despite invoking binding arbitration in previous disputes involving ports and rail, MacKinnon stated that this option “is not in the cards” for resolving the Canada Post strike.  

Speaking in French, he explained that the dispute revolves around fundamental issues related to a transformed business model for the corporation.   

The strike began on November 15 after years of unsuccessful negotiations between Canada Post and CUPW, involving approximately 55,000 postal workers.  

Canada Post estimates that nearly 10 million parcels have been affected, a number likely to increase with Black Friday sales and the holiday season now underway.   

In a statement on November 27, Canada Post said negotiations “have ground to a halt with no movement.”  

The Crown corporation claimed that CUPW had informed the special mediator it would not respond, following several days of silence.   

CUPW strongly rejected Canada Post’s claims, labelling the update “full of half-truths and outright deception.”  

The union acknowledged refusing to engage on one specific employer demand, which it said had already been addressed at least a dozen times in past bargaining sessions.   

Canada Post is fully aware of how far CUPW is willing to go – they just don’t like the answer,” the union stated.   

One key area of contention remains wages. Canada Post has proposed an 11.5 percent wage increase over four years, while CUPW is seeking a cumulative 24 percent increase over the same period.   

The strike’s resolution remains uncertain as both sides stand firm on their demands.