At its annual public gathering on Tuesday, Canada Post disclosed ongoing financial struggles and suggested significant workforce reductions through natural attrition. The Crown corporation’s chief financial officer, Rindala El-Hage, described Canada Post as effectively insolvent, revealing an operating loss exceeding $1 billion for 2025 and an unprecedented quarterly loss of $541 million before taxes.
El-Hage attributed these losses to the persistent labor disputes causing uncertainty and disruption within the organization. In response to the financial crisis, the federal government recommended drastic measures like terminating home delivery and closing rural mail outlets to stabilize Canada Post’s finances.
In a bid to modernize and streamline operations, Canada Post submitted a confidential proposal to Ottawa earlier this month. CEO Doug Ettinger, at the annual meeting, hinted at substantial job cuts, intending to reduce the current workforce of approximately 62,000 employees. He projected over 16,000 retirements or departures by 2030 and an additional 14,000 by 2035, emphasizing the need for a more efficient organization through retirements and voluntary exits.
The Canadian Union of Postal Workers (CUPW) criticized Ettinger’s remarks, expressing concerns about the adverse effects of job cuts on the communities served. CUPW emphasized the importance of government consultation with the union and customers before implementing postal service reforms.
CUPW highlighted a stamp price increase and service expansion as potential solutions for Canada Post’s financial recovery. Negotiations for a new collective agreement between CUPW and Canada Post have been ongoing for over a year and a half.
Following the government’s proposed changes to mail delivery services, CUPW initiated a nationwide strike in late September, progressing to rotating strikes by October 11 to resume mail services in most areas. While some regions have ceased flyer deliveries, addressed mail distribution continues.
CUPW confirmed ongoing negotiations with Canada Post, facilitated by federal mediators. Despite the challenges, Canada Post expressed confidence in reaching a mutually beneficial agreement with the union.