A tentative settlement has been reached with Canada Post and its largest union, avoiding the possibility of  job action this week at the postal service.  They agreements however still be ratified by more than 50,000 postal workers across the country before they become new contracts.

Canada Post has been bargaining with its employees for over nine months, but both sides said they were far apart as of late last week on big issues like pension changes for new employees and pay scales for rural postal workers.

CUPW has tried to keep defined benefit pension plans for newer workers.

The lengthy negotiations were extended twice since the weekend, when a deadline expired on a 72-hour job action notice issued last Thursday by the postal union. The threatened job action was to involve a refusal of overtime in some parts of the country.

Canada Post described the tentative agreements as short-term. It said they are for two years and that four-year contracts were typically negotiated in the past. Canada Post also suggested the two-year deals would provide more time to look at how best to address some of the issues it faces — without the threat of a work disruption.

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