At its yearly public gathering on Tuesday, Canada Post disclosed that it is still facing significant financial losses and hinted at substantial job reductions through natural attrition. The Chief Financial Officer of the Crown corporation, Rindala El-Hage, stated that Canada Post is essentially in a state of insolvency.
El-Hage revealed that Canada Post’s operational deficit for 2025 has exceeded $1 billion, with the most recent quarterly loss amounting to $541 million before tax, marking an unprecedented figure in the company’s history. She attributed these losses to the persistent uncertainty and disruptions in labor caused by an ongoing dispute with its workers.
In a bid to stabilize its financial standing and ensure survival, the federal government urged the Crown corporation to implement broad changes, including discontinuing home delivery and shutting down certain rural mail outlets. Recently, Canada Post submitted a confidential proposal to Ottawa aimed at modernizing and streamlining its postal services.
During the annual meeting, CEO Doug Ettinger hinted at significant job reductions and outlined plans to downsize the current workforce of approximately 62,000 employees through attrition. Ettinger projected that over 16,000 employees would retire or leave the corporation by 2030, with an additional 14,000 expected to depart by 2035.
Expressing the need for a more efficient organization, Ettinger emphasized a leaner approach through retirements and voluntary departures to navigate the anticipated changes with respect for the employees. In response, the Canadian Union of Postal Workers (CUPW) criticized Ettinger’s statements, citing the detrimental effects the job cuts would have on the communities they serve.
CUPW demanded that the federal government consult with both the union and Canada Post customers regarding any plans to revamp the postal service, expressing frustration at being left uninformed. The union suggested that a previous stamp price increase and service expansion could aid Canada Post in recovering its financial losses.
Ongoing negotiations for a new collective agreement between CUPW and Canada Post have been ongoing for over a year and a half. CUPW initiated a nationwide strike in late September following the government’s proposed reforms to the mail delivery business. The strike transitioned to rotating strikes by October 11, leading to the restoration of mail services in most regions while workers in certain areas ceased delivering flyers but continued with addressed mail.
CUPW confirmed that negotiations with Canada Post, mediated by federal mediators, are still in progress. Despite the challenges, Canada Post expressed confidence during its public meeting that a mutually beneficial agreement would be reached with the union.