Canadian Union of Postal Workers (CUPW) members have voted to ratify new collective agreements made with Canada Post, as the post reports a loss before tax of C$205m (US147m) for Q12026 – a deterioration of C$164m (US$118m) compared to the same period last year.
CUPW members in both the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units voted to accept the tentative agreements. The new collective agreements will remain in place until January 31, 2029.
Canada Post president and CEO Doug Ettinger welcomed the result: “We are pleased that CUPW-represented employees have voted to ratify these new collective agreements. With the stability of new agreements in place, we look forward to working with our employees and bargaining agents to rebuild the business, restore confidence in the postal system and better serve the country.”
However, Ettinger acknowledged the difficult road ahead: “While the process was challenging, these negotiated agreements recognize that Canada Post needs to change. They mean we can provide affordable weekend parcel delivery and make needed adjustments to our retail network while ensuring we continue to provide good-paying jobs across the country.”
The ratification comes as Canada Post’s first-quarter financials laid bare the scale of the challenge facing the corporation. Revenue fell by C$181m (US$130m), or 14.3%, compared to Q1 2025, with declines across all lines of business.
Labor uncertainty during the first quarter – CUPW agreements had not yet been ratified – continued to weigh on parcels performance, with revenue down C$79m (US$57m) (17.1%) and volumes falling by seven million pieces year-on-year as customers shifted deliveries to competitors.
Transaction Mail revenue dropped by C$82m (US$59m) (13.7%), partly due to favorable year-over-year comparisons with Q1 2025, when election mailings and post-strike backlogs temporarily boosted letter volumes. Direct Marketing revenue fell C$24m (US$17m) (13.4%), with some marketers continuing to migrate to digital channels.
Operating costs declined C$19m (US$13.7m) (6.9%) year-on-year, though labor costs rose due to higher wages and four additional paid days. The corporation acknowledged that volume declines had not translated into corresponding labor savings due to structural inefficiencies.
The Canada Post Group of Companies recorded a combined loss before tax of C$251m (US$181m) in Q1 2026. Subsidiary Purolator Holdings posted a profit before tax of C$23m (US$16.6m), up C$4m (US$2.8m) year-on-year.
Canada Post has begun a multi-year transformation aimed at achieving financial self-sustainability and reducing reliance on government funding. The corporation received repayable federal cash injections in 2025 to prevent insolvency.
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