Canada Post, facing mounting financial challenges including bond repayments and declining letter mail revenue, will receive a $1 billion loan from the Canadian government. The loan is intended to keep the Crown corporation afloat and ensure continued operations. Despite a recent stamp price increase, Canada Post projects significant annual losses, blaming high labor costs and competition from private delivery companies. The loan, a temporary measure, comes as Canada Post and its union, the Canadian Union of Postal Workers (CUPW), are locked in a protracted labor dispute.
A Canada Post worker delivers mail to a community mailbox during a winter storm in Souris, PEI, on Jan. 6, 2025.Ottawa will extend a $1-billion loan to Canada Post to keep the Crown corporation afloat as it faces significant financial hurdles, including the maturing of $500-million in bonds that have to be repaid to bondholders in July.
Canada Post has been losing billions of dollars over the past five years, due in part to its dwindling letter mail operations and its inability to compete with low-cost private delivery carriers such as Amazon, FedEx and UPS. The corporation projects that its annual losses will grow from $900-million in 2025 to $1.7-billion in 2029, and it has repeatedly blamed the high cost of labour, including employee pensions, for its financial state.
The union and the Crown corporation are set to begin a series of hearings on Monday in front of the Industrial Inquiry Commission – a panel appointed by the Minister of Labour in December to examine the structural issues at Canada Post that have prevented the resolution of the labour dispute. The panel is headed by veteran arbitrator Willian Kaplan. In submissions made to Mr.
CANADA POST FINANCE LABOR DISPUTE GOVERNMENT LOAN MAIL DELIVERY
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