Canada Post records worst-ever quarterly loss, with labour strife contributing 'significantly' to deteriorating outlook
Canada Post Corp.’s financial woes continue to worsen as the Crown corporation reported its most significant quarterly losses to date, citing ongoing labour disputes as a primary factor.
In a press release, Canada Post stated, “The ongoing labour uncertainty has significantly contributed to the losses in 2024 and this year.” The second quarter saw a staggering $407 million loss, a stark contrast to the $46 million profit before taxes reported a year ago. The decline was attributed to a 37 per cent drop in parcel delivery revenue and volume.
For the first half of the year, losses before taxes totaled $448 million, a stark difference from the $30 million reported in the first half of 2024. The corporation noted that over 50 per cent of the year-to-date losses occurred in June, coinciding with peak labour uncertainty.
Canada Post endured a loss of $841 million before taxes in 2024, and the losses from 2018 to the second quarter of 2025 have now surpassed $4.2 billion. The corporation anticipates recording an eighth consecutive annual loss in 2025, which is expected to exceed the losses incurred in 2024.
Labour disruptions have plagued Canada Post following a strike by approximately 55,000 employees represented by the Canadian Union of Postal Workers (CUPW) that halted deliveries for 32 days. The disruption, which lasted from Nov. 15 to Dec. 17, was resolved when the federal government ordered the employees back to work. More recently, on May 23, CUPW instructed its members to cease all overtime work.
Canada Post and CUPW have been operating without a contract since May 22, when an extension to their collective agreement expired. The threat of further strike action in May, coupled with the overtime ban, led to a decline in customer engagement.
During the second quarter, parcel revenue plummeted by $288 million, a 36.7 per cent decrease, while volumes decreased by 25 million pieces, a 36.5 per cent decline from the previous year. The first half of the year saw parcel revenue drop by $482 million, a 29.6 per cent decrease, with volumes down by 43 million pieces, a 31.1 per cent decline.
Direct marketing revenue also suffered, with a $23 million decline in the quarter and a $12 million decrease in the first half compared to the previous year. The company attributed this decline to customers avoiding time-sensitive mailings due to labour uncertainty.
Despite an increase in regular mail during the second quarter, Canada Post noted that this was primarily due to the federal election and acknowledged that mail is in a “secular decline.”
Canada Post’s Purolator division fared better, posting an $82 million profit before tax, a slight improvement from the $81 million profit reported a year ago.
As Canada Post grapples with ongoing financial challenges, the impact of labour disputes continues to be felt across its operations, highlighting the need for swift resolution and stability moving forward.
• Email: gmvsuhanic@postmedia.com
