Canada Post says talks continued Sunday with the union that represents postal workers and neither side has given notice of a work stoppage.

In a short statement, the Crown corporation said both sides have agreed not to give the required 72-hour notice of a strike or lockout "as long as the talks are productive." It said operations are continuing as normal.

The Canadian Union of Postal Workers could have been in a legal strike position as of Sunday, after a cooling-off period in the contract talks ended the day before, but has yet to issue a strike notice.

The union said Friday a notice could still be issued "at any time" if talks break down.

Canada Post presented its latest contract offer last week. It included annual wage increases amounting to 11.5 per cent over four years. The new proposal also protects the defined benefit pension for current employees, as well as their job security and health benefits. The corporation says the offer will "ensure current employees don't lose ground."

On Wednesday, the union said Canada Post's offer "is far from what we are demanding and deserve."

The union announced earlier in the week its members had voted overwhelmingly to support a strike if a deal could not be reached at the bargaining table. It said preliminary results showed 95.8 per cent of urban workers and 95.5 per cent of rural workers voted to back the strike mandate.

Canada Post, in its statement Sunday, said it is "rapidly falling behind in today's highly competitive, customer-focused parcel delivery market."

Last week, the corporation said it lost $490 million in the first six months of 2024 and $3 billion since 2018. The company said it wants to negotiate "a more flexible and affordable delivery model" that would include parcel delivery seven days a week.

Federal Labour Minister Steven MacKinnon met last Thursday with the union and Canada Post management to encourage them to reach a negotiated settlement.