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At its annual public meeting on Tuesday, Canada Post said it continues to lose money and hinted at large job cuts due to attrition.
“Canada Post is effectively insolvent,” said Crown Corporation Chief Financial Officer Rindala El-Hage.
She announced that Canada Post's operating loss would be more than $1 billion by 2025 and that its latest quarterly loss – $541 million before taxes – was unprecedented.
“It was the largest quarterly loss in the company’s history,” El-Hage said. She added that “ongoing uncertainty and labor disruptions” caused by the ongoing labor dispute with workers contributed to the losses.
In September, the federal government called on the Crown corporation to make sweeping changes, such as ending home deliveries and closing some rural post offices, to stabilize its finances and ensure its survival.
Earlier this month, Canada Post privately presented Ottawa with a plan to modernize and streamline its postal service.
Could ending door-to-door mail delivery help solve Canada Post's financial disaster? It's part of the federal government's proposed solution to limit millions of dollars in daily losses, but the union quickly responded with a nationwide strike of postal workers. Andrew Chang explains how Canada Post's biggest strength may now be its biggest weakness—and how a viable path forward could emerge. Images courtesy of Getty Images, The Canadian Press and Reuters.
At the annual meeting, CEO Doug Ettinger hinted at big job cuts and said the corporation would use downsizing to trim its workforce of about 62,000.
He said Canada Post expects more than 16,000 employees to retire or leave the corporation by 2030 and another 14,000 by 2035.
“We will need to become a leaner organization in the future,” Ettinger said. “Between retirement and other approaches such as voluntary separations, we can make these changes in a way that respects our employees.”
The Canadian Union of Postal Workers (CUPW) did not respond well to his statements.
“Canada Post CEO Doug Ettinger has doubled down on his plans to cut our jobs and government services. These plans will have devastating consequences for the communities we serve,” CUPW said in an emailed statement.
The union also said the federal government needs to consult with it and Canada Post customers about plans to revamp the postal service.
“The Canadian Postal Workers Union and Canadians are being kept in the dark. This is outrageous,” CUPW said.
The union also said higher stamp prices earlier this year and expanded services should help Canada Post recover from losses.
Negotiations with Canada Post on a new collective agreement have been ongoing for more than a year and a half.
CCMC declared a nationwide strike in late September after the federal government announced its plan for changes to the company's mail delivery business.
Union switched to rotating strikes by October 11.restoring mail service in most places. Workers in parts of Quebec and Ontario stopped handing out leaflets but continue to deliver targeted mail.
CUPW says negotiations with Canada Post, with the support of federal mediators, are ongoing.
During the public meeting, Canada Post said it remained confident the two sides would reach an agreement.
