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Canada Post Workers Vote to Accept Five-Year Contract

The ratification hands the Crown corporation short-term labour stability that could help it address heavy losses and press ahead with reform plans.

Overview

  • Union leaders announced Monday that about 55,000 members voted overwhelmingly to approve the five-year tentative agreement with more than 85 percent in favour.
  • The contract guarantees wage increases of 6.5 percent and 3 percent in the first two years and runs through Jan. 31, 2029.
  • The union showed a leadership split during ratification with roughly 60 percent of the union board endorsing the deal while the national president urged members to reject it.
  • Canada Post and the union agreed not to strike or lock out during the six-week ratification period and members also cast ballots on a strike-authorization that would preserve leverage if the deal had failed.
  • The vote gives Canada Post a degree of stability as it seeks to implement reforms after reporting a $205-million pre-tax loss in the first quarter and receiving federal funding to shore up operations.