It's official: on the 1st^er In June 2026, members of the Canadian Union of Postal Workers (CUPW) voted overwhelmingly in favor of new collective agreements with Canada Post. After years of tension, strikes, and uncertainty that drove many businesses to UPS, FedEx, or Purolator, the Crown corporation is finally turning the page—and embarking on a major shift: the Weekend package delivery.

For Canadian small and medium-sized businesses and online retailers, this change is far from insignificant. Saturday and Sunday delivery, long reserved for private carriers at an additional cost, is now part of Canada Post’s operating model. Here’s what the agreement entails, how it will actually affect your shipments, and how you can take advantage of it right away.

A quick reminder: the rates mentioned in this article are for reference only and may vary depending on your plan, the service you choose, and your destination.

A ratified agreement that puts an end to years of instability

The results of the ratification vote are clear: approximately 89 % of urban workers and 85.9 % Rural and Suburban Factors (FFRS) have accepted the new agreements, which will remain in effect until January 31, 2029.

The agreement provides, in particular, for:

• wage increases of 6.5 % in the first year and 3 % for the second year, followed by inflation-indexed increases for years three through five;
• enhanced benefits;
• and above all, a Weekend package delivery model, a cornerstone of Canada Post's modernization.

For shippers, the most important indicator lies elsewhere: it is the restored stability. Since 2024, every peak season has been accompanied by the risk of a strike or work slowdown at Canada Post, forcing small and medium-sized businesses to shift their volumes to private carriers, which are often more expensive. With agreements in place through 2029, this risk is significantly reduced.

How will weekend delivery work?

Specifically, the agreement creates a new category of urban operations employees: the part-time package delivery drivers (PD PT), most of whose work will involve Saturday and Sunday deliveries. A few things to keep in mind:

• These teams will be based at a main depot, but will also be able to operate from centralized platforms;
• Weekend tours will be dynamic, that is, organized based on the actual volume of packages rather than fixed routes—the same principle used by Amazon and major parcel carriers;
• in rural and suburban areas, a new position of’permanent flexible employee may also be assigned to weekend package delivery.

In short, Canada Post is implementing a system designed to handle e-commerce packages seven days a week, rather than traditional mail Monday through Friday.

What this means for small and medium-sized businesses and online stores

Weekend delivery meets a consumer expectation that has become the norm: receiving orders quickly, including on Saturdays and Sundays. For your business, the potential benefits are clear:

• Perceived shorter lead times : An order placed on Thursday evening can be delivered on Saturday instead of Monday, saving the customer two days—without having to pay for express service.
• Fewer packages pending : Weekends will no longer be «gaps» in the network, which will help smooth out Monday traffic volumes and reduce peaks.
• A competitive advantage over private providers : Among major private carriers, residential delivery in 2026 will carry a surcharge of approximately $6.45 to $6.50 per package, and Saturday delivery often remains a separately billed option. If Canada Post incorporates weekend delivery into its regular service, the total cost gap could widen in its favor in the residential segment.

Canada Post is once again a credible option in your carrier mix

The 2026 rate environment lends even more weight to this news: FedEx, UPS, and Purolator have implemented across-the-board increases of 5.7 Q1–Q3 to 5.9 Q1–Q3 between September 2025 and January 2026, in addition to fuel surcharges that have reached record highs—around 23.5% 1Q3Q at Purolator and nearly 29.5% 1Q3Q at UPS and FedEx for certain services in early 2026. As a result, for many small and medium-sized businesses, the actual cost of an identical package has jumped by more than 12% in less than a year.

In this context, reintegrating Canada Post into a multi-carrier strategy is of twofold interest:

• take advantage of residential rates, which are generally more affordable for light, non-urgent packages;
• Add weekend delivery without the extra cost of the express option.

Caution is still advised: the weekend model will be rolled out gradually, and Canada Post is simultaneously pursuing other reforms (community mailboxes, review of the post office network). Monitor the announced service standards for your shipping corridors before shifting large volumes.

Three steps to take right now

1. Review your transportation agreements

If you’ve stopped using Canada Post during these uncertain times, request a new quote and compare the total cost (base rate + surcharges) with your current carriers. For light residential shipping, the difference can be significant.

2. Update your online delivery estimates

As soon as weekend delivery becomes available in your areas, update the delivery times displayed in the shopping cart. A «delivered by Saturday» promise increases the conversion rate, especially for orders placed on Thursday and Friday.

3. Maintain a multi-carrier strategy

Ratification reduces the risk of labor disputes, but no network is immune to unforeseen events. Keeping two or three active carriers on board protects you and gives you ongoing negotiating leverage.

Conclusion: Good news to turn into an advantage

The ratification of the agreements between Canada Post and the CUPW marks a turning point: stability through 2029, network modernization, and the introduction of Saturday and Sunday package delivery. For Canadian small and medium-sized businesses, this is an opportunity to review their shipping mix, reduce residential costs, and offer a delivery experience that meets customer expectations.

Want to know which carrier offers the best rates for your packages, including on weekends? The team at’Shipping Store compares rates from Canada Post, Purolator, UPS, FedEx, and DHL for you and helps you develop the most cost-effective shipping strategy for your business. Request your quote today at expertshipping.ca.