Members of the Canadian Union of Postal Workers (CUPW) have voted overwhelmingly to ratify a new collective agreement with Canada Post, ending more than two years of contract negotiations and labour uncertainty. The contract, which outlined terms for a deal that was tentatively agreed upon in December 2025, will remain in effect until January 31, 2029.
For Hemlock customers who rely heavily on direct mail or fulfillment services, this announcement provides highly anticipated supply chain stability. Below is an overview of what the ratified agreement includes and what it means for Canadian businesses.
Canada Post & CUPW New Collective Agreement—Key Terms
The new deal addresses key priorities for union members while making way for Canada Post to modernize its delivery network. Notable highlights include:
- Wage Increases: A 6.5% wage increase in the first year (inclusive of a 5% raise already received). A 3% increase in the second year. Wage adjustments in years 3 – 5 that will be tied to the Consumer Price Index (CPI) to protect against inflation.
- Weekend Parcel Delivery: Implementation of a new operating model to support weekend parcel delivery.
- Job and Benefit Protections: Continued job security, maintenance of the existing pension plan, an enhanced health benefits package, and improved short-term disability leave.
- RSMC Compensation: Rural and Suburban Mail Carriers (RSMC) will transition to an hourly rate of pay, ensuring compensation for all hours worked
Long-Term Stability for Hemlock’s Mailing & Fulfillment Clients
The ratification definitively closes a turbulent multi-year period marked by national work stoppages, rotating strikes, and government intervention. The resolution ensures that our valued customers who utilize direct mail and fulfillment can run their businesses with confidence.
For help optimizing your next direct mail campaign or to establish a new fulfillment partner, reach out to our team at info@hemlockconnect.com or submit an online form.
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