Honestly, the last few months have felt like a never-ending game of "will they or won't they" with your mail. If you've been staring at an empty mailbox or watching your small business shipping costs skyrocket, you aren't alone. We’ve all been there.
The good news? The wait is mostly over. As of mid-January 2026, the national strike that paralyzed Canada Post throughout the fall and early winter has officially cooled down.
A tentative agreement was reached right before the holidays, specifically on December 22, 2025. This wasn't just a "pause" like the ones we saw in November; it’s a full-on recommendation from the union leadership to its members to sign on the dotted line. Strike and lockout activities are suspended while everyone waits for the final ratification votes.
But don't expect your Amazon package from three weeks ago to just show up tomorrow morning. The backlog is real.
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The Postal Strike Canada Update: Where Things Stand Right Now
Basically, the Canadian Union of Postal Workers (CUPW) and Canada Post finally found some middle ground after 21 months of arguing. It was a long haul.
Right now, the parties are in a "cool-down" period. Contractual language was finalized around January 16, 2026, and now the 55,000+ postal workers are getting ready to vote.
If they say yes, we’re good for five years.
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If they say no? Well, we might be right back at the picket lines, though the union leadership—people like Lana Smidt and Francois Senneville—are pushing hard for a "Yes" vote. They think they’ve squeezed as much out of Canada Post as they can, especially given the Crown corporation's staggering $541-million loss reported in the third quarter of last year.
What’s actually in the new deal?
It’s not just about more money, though that’s a big part of it. The union fought tooth and nail against what they called "attacks" on the public service. Here is the meat of the agreement:
- The Wage Hike: It’s a five-year deal. You’re looking at a 6.5% increase in the first year (which includes some retroactive pay) and 3.0% in the second. For the last three years, raises are tied directly to the Consumer Price Index (CPI). This means if inflation goes up, their pay goes up too.
- Pensions Stay Put: This was a massive sticking point. Canada Post wanted to change how new hires got their pensions. The union said no. The defined benefit pension plan stays exactly as it is.
- Weekend Delivery is Coming: This is huge for us as customers. To compete with the likes of FedEx and UPS, Canada Post is moving to a new staffing model that supports seven-day parcel delivery.
- Hourly Pay for Rural Carriers: RSMCs (Rural and Suburban Mail Carriers) are finally transitioning to an hourly pay system, which is a major shift from how they were compensated before.
Why it took so long to get here
The 2025-2026 dispute was particularly nasty because Canada Post is essentially broke. They’ve been losing money for years because we just don't send letters like we used to.
The federal government tried to step in with "transformation" plans—talk of phasing out door-to-door delivery and closing retail counters. That's what sparked the full nationwide strike back on September 25, 2025.
The union saw it as the beginning of the end for the post office. They wanted to expand into things like postal banking or "check-in" services for seniors to bring in new revenue instead of just cutting jobs.
In the end, the deal preserves 393 corporate retail counters across Canada. It’s a compromise. Nobody got everything they wanted, but it stopped the bleeding.
The impact on small businesses
If you run a business, you know the strike was a nightmare. The Canadian Federation of Independent Business (CFIB) reported that the strike cost small firms upwards of $1.6 billion.
Roughly 73% of small business owners said they’ll probably use Canada Post less in the future. They had to find alternatives—private couriers that were often more expensive or simply "hit capacity" and stopped taking new clients.
Trust was broken. It’s going to take more than a new contract to win those businesses back.
What should you do next?
While the strike is technically "suspended," the system is still recovering. Here’s how to handle your mail in the coming weeks:
- Expect a "Backlog Delay": Even though trucks are moving, the mountains of mail that sat in sorting facilities for weeks take time to process. Add an extra 5 to 10 business days to any expected delivery window.
- Watch the Ratification Vote: The votes are happening throughout late January. If the members reject the deal, we could see rotating strikes return. Keep an eye on the official CUPW news page for the final tally.
- Audit Your Shipping Strategy: If you're a business, don't put all your eggs in one basket. Diversify. Use a mix of Canada Post and private carriers so you aren't stuck if negotiations sour again in 2029.
- CRA and Government Mail: If you’re waiting on a tax refund or a benefit cheque, the CRA still recommends signing up for Direct Deposit. Even without a strike, it’s just faster.
The era of the "postal strike" isn't fully closed until the ink is dry on the ratified contract, but for the first time in months, the mail is actually moving.