Canada Post has been notified that it will receive $1 billion in repayable funding through the 2025-26 fiscal year.
Canada Post Corporation says that while the financing will help it “maintain its solvency and continue its operations,” the loan will not solve its structural problems. It says it has suffered significant annual losses since 2018, “fueled by rapid changes in the postal and parcel delivery industries, high labor costs and legacy regulatory measures.”
Public Services and Procurement Canada says money will be provided as needed to pay non-discretionary obligations, noting that Canada Post would not have met its necessary operating cash requirements in 2025 despite the recent increase in the price of the stamp .
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-The department believes this is a “necessary financial bridge” to allow Canada Post to continue operating while it works with Ottawa on long-term changes to ensure its viability.
The lifeline comes after a strike by Canada Post workers halted mail delivery late last year, until the federal government intervened to end the labor dispute.
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