The threat of possible job action at Canada Post has been placed on hold for 24 hours.
The Canadian Union of Postal Workers made the announcement in a statement issued late Sunday night.
The union served a 72-hour strike notice Thursday night, accusing Canada Post of forcing a labour disruption by refusing to bargain in good faith.
It said that if there was no deal by midnight Sunday, it would begin job action on Monday by having its members refuse to work overtime on a rotating basis, starting in Alberta and the Northwest Territories.
The two sides have been deadlocked for months on the issues of pay scales for rural letter carriers and proposed changes to pensions for future employees.
A federally-appointed mediator was brought in Friday, and Canada Post spokesman Jon Hamilton said in a statement Sunday night that the Crown corporation had agreed to extend the talks for 24 hours at the mediator's request
