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Canada Post and the union representing thousands of mail carriers across the country say they have reached agreements in principle after two years of contentious bargaining.
The Canadian Union of Postal Workers (CUPW) says the sides “have agreed on the main points of the deals,” and that rotating strike action has been suspended as the parties work out language in the new contracts.
“We need to agree on the contractual language that will form the collective agreements that would be put to a vote by the members,” CUPW said in a statement, noting that it will “retain the right to strike.”
Canada Post confirmed that the parties have reached a tentative agreement, pending a union vote.
“While this is being done, it has been agreed that all strike or lockout activities are suspended,” the agency said.
If the two sides can’t come to terms on the language in those deals, a strike could resume heading into the busy holiday season.
The saga took a series of sharp turns over the past few years as the union sought better wages and job security, and Canada Post wanted changes to help turn around its struggling operations.
CUPW launched a nationwide strike in late September after the federal government announced sweeping changes to the Crown corporation, including authorizing it to end home delivery for the four million addresses that still receive it.
The government’s plan also includes lifting a moratorium on closing rural post offices, which covers almost 4,000 locations.
The deal comes as Canada Post reports 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.
