Canada Post has disclosed a $1.3 billion shortfall in operational expenses in its 2024 yearly financial statement. To mitigate some of these losses, the government agency divested certain assets, including its logistics division, which was sold off in January of the preceding year. Excluding taxes and factoring in divestments, Canada Post incurred losses amounting to $841 million last year, a significant increase from the $748 million reported in 2023 and the $548 million in 2022. The last time Canada Post recorded a profit was in 2017, with an accumulated loss of $3.8 billion since 2018.
The decline in volumes and revenues in both traditional mail delivery and parcel services, coupled with intense competition from private parcel carriers, have further strained Canada Post’s financial standing. CEO Doug Ettinger emphasized the urgency for change to address the corporation’s challenges and ensure sustainability for the future. Parcel delivery revenue alone dropped by $683 million compared to the previous year.
The impact of the postal worker strike from the previous year contributed to a $208 million loss, with a potential strike currently looming as contracts between the union and Canada Post have expired. Disagreements persist on various issues, including worker compensation, benefits, pensions, and the hiring of part-time weekend staff instead of paying overtime for weekend shifts. While negotiations are ongoing, a strike notice has been issued by the Canadian Union of Postal Workers.
Scott Wingfield, a business owner from Victoria, expressed his diminishing reliance on Canada Post due to its decreasing reliability, leading him to divert a significant portion of his shipping operations away from the Crown corporation. Business professor Marvin Ryder highlighted the importance of implementing recommended changes, such as ceasing door-to-door mail delivery and utilizing part-time weekend workers, to enhance Canada Post’s competitiveness and financial sustainability. Failure to make substantial changes within a year could potentially exacerbate the company’s financial predicament.