You are right its not 2% per year. The company offered 2.9%, the union want 3.3%. I guess if you consider 3% a MASSIVE pay increase when that is about the rate of inflation, I certainly wouldn't want to work for you LOL
The wages are covered by the PROFITS of the company, Canada post made money last year. The only way it is coming out of your pocket is if you use their servces.
This has become the problem with unions. The union sees that the company has made a profit. The union demands increased wages and benefits because there is a profit. The next thing you know is there is no more profit, the company is losing money, and the union is complaining about cuts to the workforce and/or number of hours. The union says with fewer workers and time, they need to be paid more because of the extra work they have to do.
The workers ought to be happy they have a job in the first place. If the workers want to strike, the company should tell them "Go ahead and strike, you can pick up your final paycheck on your way out."