The federal government is providing “repayable funding” of more than $1 billion to Canada Post to help it get out of trouble.
• Also read: Canada Post employees returning to work: “We feel quite betrayed by our government”
• Also read: Service will resume Tuesday at Canada Post: delays expected until 2025
In a press release released Friday, Canada Post states that this “short-term financial liability” will allow it to “continue its operations, but will not resolve the structural problems of the company.”
Without this liquidity support, the Crown corporation says it would “completely deplete its cash reserves by the second quarter of 2025.”
Canada Post has been accumulating losses since 2018 due to the transformation of the parcel delivery sector, today dominated by private sector players.
-It also blames “high labor costs” and “outdated regulatory measures that hinder the company’s ability to evolve and compete.”
“Canada Post is determined to work with the government to make the major changes that are necessary to meet the country’s evolving delivery needs and return to financial autonomy,” we explain in a press release.
The company’s precarious situation was exposed during a labor dispute that interrupted its services for many weeks before the holiday season last fall.
The Minister of Labor, Steven MacKinnon, contacted the Canadian Industrial Relations Board (CIRB) to ask it to impose a return to work while extending the collective agreement until May 22, time to finish the negotiations .
