The Canadian Union of Postal Workers (CUPW) has voted to reject final contract proposals from Canada Post (CP), with the union calling on its employers to return to the bargaining table.

CUPW members were ordered in June by Canada's labor board to vote on two four-year contracts: one for the union's urban unit, and another for rural postal workers. According to an August 1 release from the union, nearly 70% of members voted against each contract, with CUPW national president Jan Simpson accusing CP of engaging in "scare tactics and fear mongering" to push the collective bargaining deal through. 

"Members have now made clear what our negotiators have been telling (Canada Post) all along: these offers don’t cut it," she said, adding that the CUPW's ban on overtime that's been in effect since late-May will remain in place until a deal is reached.

In a separate release, CP said that it was "disappointed in the results," and that it is evaluating its next steps. 

CP's offer reportedly included a 6% wage increase in the first year of the contract, 3% in year two, and then another 2% in each of years three of four. It also would have added a minimum guarantee of 15 hours per week for part-time employees, a C$1,000 ($725) signing bonus for full-time employees, and the removal of compulsory overtime. The CUPW asserted in June that the contract's wage increases were not substantial enough, and urged its members to reject the deal.

CP has struggled financially for years, having recorded annual losses in each year dating back to 2018. CP was also on pace to completely deplete its cash reserves by the second quarter of 2025 before the federal government stepped in with a C$1 billion lifeline in January.