Canada Post rejected a request made by the Canadian Union of Postal Workers (CUPW) to resort to mandatory arbitration as a means to end the ongoing labor dispute over working conditions and wages.

In an official statement, Canada Post said it is "still committed to direct negotiations" and believes that reaching an agreement through direct talks is the best way to achieve "fair and sustainable outcomes" for both parties.

For its part, the union expressed its disappointment at the refusal, pointing out that mandatory arbitration would have spared workers further delays and provided a quick solution without disrupting mail services. The union confirmed that its members "are suffering from stressful working conditions and unfair wages" amid rising living costs.

This development comes at a sensitive time, as the postal sector faces increasing operational pressures with the growing demand for delivery services, particularly in rural and remote areas.

Concerns remain that the continuation of the dispute could lead to potential strikes or slowdowns in mail services across the country, which may affect individuals and businesses alike.