Canada Post and the union representing thousands of its mail carriers say they have reached agreements in principle for new contracts after two years of contentious bargaining.
Both parties confirmed the outlines of a deal were in place Friday evening.
In a statement, the Canadian Union of Postal Workers said rotating strike action has been suspended as the parties work out language in the new contracts. Canada Post agreed to the same terms for any lockout action.
If the two sides can't come to terms on the language in those deals, a labour disruption could resume heading into the busy holiday season.
The agreements cover both CUPW's urban bargaining unit and its rural and suburban unit.
No details of the agreements in principle were shared by either party heading into the weekend.
The union said the two sides agree on the main points of the deal and must now work out tentative agreements for members to vote on.
"This round of bargaining has been a challenging one. But members have stood together for strong public services, good jobs and a sustainable post office," said CUPW president Jan Simpson in a bulletin to members.
It's been a long process getting to this point for the union and the employer.
Both sides have sparred the last few years over wage hikes and structural changes to the postal service's workforce, including proposals to introduce more part-time workers and seven-day-a-week delivery.
Postal workers have taken to the picket line on multiple occasions, including a disruptive strike ahead of the holidays last year.
The deals in principle come the same day Canada Post reported the steepest quarterly loss in its history as the labour dispute ran up against long-standing structural issues in the postal service's business model.
The federal government weighed in multiple times over the course of the bargaining, including most recently announcing sweeping changes to the postal service's mandate that would allow for major changes to Canada Post's operations.
This report by The Canadian Press was first published Nov. 21, 2025.
