Canada Post CEO Doug Ettinger reported to Parliament yesterday that the Crown corporation is "on the brink" after experiencing a record pre-tax loss of $841 million last year. That increases to $1.3 billion when accounting for operating expenses.

Ettinger asserted that urgent major changes are required, as management has suggested service reductions and collective agreement revisions with the Canadian Union of Postal Workers (CUPW).

Canada Post issued final offers to employees yesterday due to concerns that poor labour relations were negatively impacting business. Labour Minister Patty Hajdu declined to comment, according to Blacklock’s.

Canada Post lost another $841 million last year.

That’s $3.8 billion in losses over seven years.

Bold prediction: Canada Post won’t repay a dime of the $1 billion “loan” the government just gave it. pic.twitter.com/9a4QbclLpV

— Franco Terrazzano (@franco_nomics) May 28, 2025

The CUPW announced on May 22 that its members would begin refusing overtime work nationwide at midnight local time, as first reported by the Toronto Star.

Canada Post's latest offer reflected a May 16 report indicating the post office was “effectively insolvent or bankrupt.” The Union countered that no meaningful negotiation had taken place.

Public Services and Procurement Canada provided a $1.034 billion loan in January to address Canada Post's mandatory expenses for the 2025/26 fiscal year. The postal service has been unprofitable since 2017, with accumulated losses totaling $3.8 billion.

The union has accused Canada Post of bad faith negotiation, though a four-year contract remains on the table for employees to consider, including a 13% total wage increase.

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/0Ta9SCwVlH

— Rebel News (@RebelNewsOnline) January 26, 2025

Ettinger stated that the Crown corporation needed a "bold new approach" for financial sustainability, emphasizing the need to overcome resistance to change that has brought the postal system close to insolvency.

Excluding divestments and taxes, Canada Post's losses worsened to $841 million last year, up from $748 million in 2023 and $548 million in 2022.

Despite projections of $102.2 million annually from two stamp rate increases, losses persisted and grew after cabinet approval. The Crown corporation partially mitigated these losses by divesting assets, including its logistics division in January of the previous year.

"Our current structure was built for a bygone era of letter mail — the status quo has led us to the verge of financial insolvency and is not an option," CEO Doug Ettinger said in the news release.

Letter volumes have dropped from around 5.5 billion in 2006 to approximately 2.2 billion in 2023. According to the Annual Report, parcel delivery also fell 65% compared to 2023.

Canada Post “spent more than $10 million per day on labour costs, excluding benefits.

Labour costs have continued to rise over time, primarily due to wage increases and the company’s outdated operating model.”

There shouldn’t be any pay hikes! pic.twitter.com/sfn2giNpEy

— Franco Terrazzano (@franco_nomics) May 28, 2025

One Victoria business owner told CBC News that he previously relied on Canada Post for 98% of his shipping but reduced it to about 40% after a past strike, stating, "I don't feel I can rely on Canada Post.”

Amidst another possible strike, FedEx and others are preparing for a potential demand surge and have contingency plans to maintain service levels.

Labour experts suggest the federal government might introduce back-to-work legislation sooner rather than later, if the workers do end up striking.

Public Works Minister Joël Lightbound's office indicated that the government will not intervene in the event of another strike, stating that the priority is for both parties to reach an agreement through negotiation.

Federal intervention ended lengthy Canada Post strikes in 2024 and 2018, costing taxpayers hundreds of millions of dollars.

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