Canada Post gets financial lifeline from Ottawa up to $1B amid struggles

Canada Post says the national authorities is providing it with a lifeline to assistance the Crown corp proceed operating arsenic it “deals with important fiscal challenges.”

The corp said Friday that Ottawa plans to marque repayable backing of up to $1.034 cardinal disposable for its 2025-26 fiscal year.

Canada Post’s incoming backing comes conscionable 2 months aft it reported steep fiscal losses successful its 3rd quarter, with the nationalist postal work reporting a nonaccomplishment earlier taxation of $315 cardinal amid a diminution successful parcel gross and volumes.

That quarter’s gross from parcels had dipped 5.8 per cent and volumes declined by six cardinal pieces, oregon 9.6 per cent compared to the erstwhile year.

According to the quality merchandise announcing the funding, the corp said it would assistance operations proceed but would not assistance successful its structural issues.

“It will, however, supply a impermanent fiscal span portion Canada Post and the authorities enactment unneurotic connected a program to unafraid the semipermanent viability of a work that millions of Canadians see essential,” the merchandise reads.

The financing besides comes a period aft a onslaught by Canada Post workers came to an extremity erstwhile the Canada Industrial Relations Board (CIRB) ordered workers backmost connected the occupation after a petition by Labour Minister Steven MacKinnon.

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Since 2018, the corp has recorded yearly losses that it says are fuelled by the changes successful postal and parcel transportation sectors, labour costs and “legacy regulatory measures” that it claims prevents it from evolving and competing with different companies.

It says it has had to pat into currency reserves successful caller years to code the rising costs.

It added its 2023 yearly study besides showed that without the financing measurement announced Friday, the institution would wholly deplete its currency reserves by the 2nd 4th of 2025.