The federal government grants “refundable funding” of more than $ 1 billion in Canada Post to help it get out of the kneader.
• Read also: Canada Post Employees Back to work: “We feel a lot betrayed by our government”
• Read also: The service will resume Tuesday at Posts Canada: delays to be expected until 2025
In a statement published on Friday, Posts Canada says that this “short -term financial liabilities” will allow it to “continue its operations, but will not solve the structural problems of the company”.
Without this liquidity support, the Crown Society states that it “would fully exhaust its cash reserves by the second quarter of 2025”.
Post Canada has accumulated losses since 2018 due to the transformation of the package delivery sector, now dominated by players in the private sector.
-It also accuses “high labor costs” and “obsolete regulatory measures that hinder the company’s ability to evolve and be competitive”.
“Posts Canada is determined to work with the government to make the major changes that are necessary to meet the country’s evolutionary needs with regard to delivery and reconnect with financial autonomy,” it is said in a press release.
The precarious situation of the company was exposed during a labor conflict which interrupted its services for long weeks before holidays last fall.
The Minister of Labor, Steven Mackinnon, had seized the Canadian Council for Industrial Relations (CCI) to ask him to impose a return to work while extending the collective agreement until May 22, the time to end the negotiations .
Canada
