The Canadian Union of Postal Workers (CUPW) has reportedly dropped its wage demand to 19 per cent over four years, CUPW negotiator Jim Gallant told CTV News.
The union also dropped the demand to merge the urban and rural bargaining units.
More than 55,000 workers are involved in the strike which nears the end of its 25th day.
Earlier on Monday, CUPW listed its demands including wage increases, a cost-of-living allowance, and more job protections.
The strike began Nov. 15, and federal mediation was put on hold nearly two weeks ago due to the sides being too far apart.
With files from The Canadian Press