Canada Post fires executives and managers to save costs, more layoffs expected
Nearly 50 managers were given the boot this week, with three executive positions also scrapped. No unionized roles were cut at this time, though more layoffs are expected this year.
Canada Post fired dozens of managers this week, including its chief financial officer, to save on costs after years of crippling deficits.
“It’s a corporate-wide restructuring,” a spokesperson told CBC News. “It’s an unfortunate reality based on the financial challenges we face, but it’s also something that needs to be done.”
Taxpayers recently gave the Crown corporation a $1.034 billion loan to meet obligations — a temporary fix, with profits last reported in 2017.
Nearly 50 managers were given the boot this week, with two vacant executive positions also cut to find savings. It will help Canada Post “help us to prepare for what's going to be a challenging year,” the spokesperson said.
Safe from this round of layoffs were unionized carriers and mail sorters, who left a 5% pay increase on the table, seeking a better deal last fall.
Further details surrounding the cuts remain unknown as of publication, though the company confirmed there would not be another service disruption.
Tens of thousands of workers walked off the job for 32 days last fall, delaying deliveries of some 190,000 passports and 1.65 million tax notices from the CRA, Blacklock’s learned.
Taxpayers are bailing out another Crown Corporation amid continued financial struggles. Canada Post, whose 55,000 workers went on strike last year, have gone radio silent following the handout.https://t.co/j2rAJ2A5Lr
— Rebel News Canada (@RebelNews_CA) January 26, 2025
One national negotiator claims Canada Post has too many superintendents, managers, directors and executives but could not provide a number to clarify his position.
“I have no indication of how many managers they need. What I do know is that there are a lot of them,” said Jim Gallant, a negotiator for the Canadian Union of Postal Workers (CUPW).
“They get paid a lot of money,” he added.
The corporation employs some 50,000 full-time employees, with 5% constituting management roles.
More management cuts are a “definite” possibility, but considered a last resort at this time, the spokesperson said. Further staff reductions are expected later this year.
The carrier, meanwhile, cut its executive branch by 20% in its first round of layoffs.
Feds force Canada Post employees back to work
— Rebel News (@RebelNewsOnline) December 17, 2024
More than 55,000 workers walked off the job on November 15 after both sides failed to reach a new agreement for better wages, greater pension security and stronger health benefits.https://t.co/zTaQ4Iu9Gm
Amid “rapid changes” to the industry, Gallant says 3,000 front-line positions — including mail sorters and carriers — have been eliminated since 2006, when deliveries peaked. Canada Post delivered almost 5.5 billion letters then, falling to roughly 2.2 billion in 2023.
The company since implemented a manager hiring freeze, and has cut back on discretionary spending like travel to save on costs.
They also raised the price per stamp last month to no avail.
Canada Post forecasts larger, more unsustainable losses in future years by remaining at status-quo, forcing change to secure a sustainable financial model.
SHOCKING: Canada Post strikers BLOCK deliveries from Purolator plant
— Rebel News (@RebelNewsOnline) December 9, 2024
Unhinged strikers disrupted deliveries over the weekend by blocking Purolator drivers, despite Purolator being owned by Canada Post.
MORE by @WestCdnFirst: https://t.co/tCf2H4OVt4
Public Services and Procurement Canada made clear their recent loan is tantamount to bridge financing, and comes with the expectation that Canada Post “be put on a path to viability.”
“This is ‘keep the lights on’ money,” confirmed the spokesperson. “It’s a short-term fix.”
The federal government recently established an industrial inquiry commission to explain why contract negotiations stalled, and review the carrier’s business model to identify inefficiencies. A final report is expected in May.
The Crown corporation has incurred more than $3 billion in losses since 2018, with managers blaming their woes on “changes in the postal and parcel delivery sectors, high labour costs and legacy regulatory measures.”
CUPW and Canada Post are still without a contract after federal intervention enforced the current collective bargaining agreement until May 22.
Alex Dhaliwal
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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Bruce Atchison commented 2025-02-06 22:47:01 -0500I wish we could pull a Reagan on those CUPW workers. Give them the ultimatum that they accept the original offer or be fired. So many people would love to be paid the wages those unionized workers get. At least the corporation is shedding managers. They’re the bloat which takes up so much money in the system.
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Bernhard Jatzezck commented 2025-02-06 21:47:51 -0500And, while all this is going on, I haven’t noticed any improvement in postal service.
