Outcome of Canada Post Vote Could Lead to Lockouts or Layoffs, Say Labour Experts

TORONTO, ON — July 25, 2025

Small Town News | A Division of Small Town Productions

Canada Post employees are currently voting on the corporation’s final contract offers, and according to labour experts, a rejection could potentially lead to significant operational changes, including layoffs or a lockout.

Over 53,000 members of the Canadian Union of Postal Workers (CUPW), which represents both urban and rural/suburban workers, are participating in a federally mandated vote running from July 21 to August 1. The vote was ordered by the Minister of Labour and is being overseen by the Canada Industrial Relations Board (CIRB) following a prolonged negotiation process.

Contract Offer and Union Response

Canada Post’s final offers include wage increases, a signing bonus, job security protections, the continuation of a defined benefit pension plan for existing employees, and the removal of mandatory overtime. The proposed contracts would run until January 31, 2028.

CUPW leadership has recommended that members vote against the offers. The union has expressed concerns that the proposals do not adequately address key issues such as future job security, staffing, and pension protections for new hires. The union has also raised concerns about the voting process itself, citing registration difficulties reported by some members.

Canada Post has stated that the offers are fair and reflective of the current financial challenges facing the organization, including reported operating losses of up to $10 million per day in June due to reduced parcel volumes and work disruptions.

Expert Commentary

Labour analysts suggest that if the vote results in a rejection, Canada Post may respond with measures aimed at managing its operations and costs.

Steven Tufts, associate professor of labour geography at York University, noted that a “No” vote could lead to layoffs, depending on how the employer chooses to proceed.

Rafael Gomez, director of the Centre for Industrial Relations and Human Resources at the University of Toronto, stated that a lockout is also a possibility, given the prolonged impasse. “The employer may see a lockout as a way to force resolution,” he said, while emphasizing that such decisions would ultimately depend on Canada Post’s strategic and operational assessments.

At the time of reporting, Canada Post has not made any official statements regarding potential layoffs or lockouts.

Background and Process

The vote follows a directive issued under Section 108.1 of the Canada Labour Code. The government’s involvement came after nearly two years of negotiations and a report issued earlier this year by independent arbitrator William Kaplan. The report highlighted structural and relationship challenges between CUPW and Canada Post and recommended several changes to improve labour relations.

Should the majority of voting members accept the offers, the proposed agreements would be implemented. If the offers are rejected, the next steps could include further negotiations, job action, or changes in operations initiated by either party.

Voting concludes on August 1, with results expected shortly thereafter.

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