Canada Post posted $407 million in pre-tax loss in Q2, its largest single-quarter loss, as parcel volumes and revenue each dropped about 37% from a year earlier. The corporation pointed the loss to customer uncertainty tied to the Canadian Union of Postal Workers’ overtime ban that began May 23.
“Over 50 per cent of year-to-date losses occurred in June, when labour uncertainty was at its peak,” the company said, adding the situation pushed parcel volumes to competitors that could offer delivery stability.
The union rejected the company’s attribution of losses to the overtime ban: “Rather than taking accountability, Canada Post continues to point to workers as the cause of its losses,” spokesperson Emilie Tobin said.
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CUPW seeks 19% over four years, including 9% in year one, but Canada Post offered 13% over four years. The company wants part-time, flexible employees handling weekend and holiday parcel delivery, while the union wants full-time letter carriers to do so.
Employees recently voted down Canada Post’s latest offer and the company had asked the federal government to invoke a rarely used Labour Code provision for a direct member vote.
READ: Canada Post, Union Deadlock Threatens Second Postal Disruption in Six Months
The workers and Canada Post have been without a collective agreement since bargaining began in November 2023, following a 32-day strike in late 2024 and a December back-to-work order via the Canadian Industrial Relations Board.
The parties resumed bargaining last week. A Monday session with federal mediators was, per the union, canceled by the corporation.
Information for this story was found via The Globe And Mail and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Time to offer buyouts to senior employees and only then canada post will get more control of junior employees.