Canada Post rejects union’s request for binding arbitration to end labour dispute

Canada Post has rejected a request from the union representing about 55,000 of its workers to send their ongoing labour dispute to binding arbitration.

The Canadian Union of Postal Workers made the request in a statement issued Saturday, saying it was inviting Canada Post to a fair, final and binding arbitration process to resolve negotiations that have dragged on for months without producing a new collective agreement.

But the crown corporation dismissed the proposal in a response released on Sunday, saying it wants to “restore stability” to the postal service and arguing the union’s request for binding arbitration would do the opposite.

Canada Post says arbitration would be long and complicated and would likely last more than a year, adding to what it described as it’s significant financial challenges.

Canada Post presented what it called its “final offers” to the union on Wednesday, with concessions including an end to compulsory overtime and a signing bonus of up to $1,000.

But it stuck to a proposal for a 14 per cent cumulative wage hike over four years and part-time staff on weekend shifts, a major sticking point in the talks.

Canada Post said the two sides are at loggerheads after months of conciliation and mediation and has asked Jobs Minister Patty Hajdu to force a union membership vote on its latest proposals.

The union has been in a legal strike position as of May 23, but so far has opted to ban members from working overtime instead.

— With files from Christopher Reynolds in Montreal

This report by The Canadian Press was first published June 1, 2025.