At its yearly public gathering on Tuesday, Canada Post disclosed its ongoing financial struggles and suggested potential significant workforce reductions through natural attrition. The corporation’s chief financial officer, Rindala El-Hage, stated that Canada Post is essentially insolvent, revealing an operating loss exceeding $1 billion for 2025 and an unprecedented quarterly loss of $541 million before tax. El-Hage attributed these losses to the persistent labor uncertainty and disruptions stemming from an ongoing dispute with its employees.
Following a call from the federal government in September for sweeping changes to stabilize Canada Post’s finances and ensure its longevity, the Crown corporation privately submitted a modernization and streamlining plan to Ottawa earlier this month. CEO Doug Ettinger, at the annual meeting, hinted at significant job cuts and outlined a downsizing strategy from the current workforce of approximately 62,000 employees. Ettinger anticipates over 16,000 retirements or departures by 2030 and another 14,000 by 2035, emphasizing the need for a more efficient organization through retirements and voluntary departures.
In response to Ettinger’s statements, the Canadian Union of Postal Workers (CUPW) expressed strong opposition, emphasizing the negative impact of the proposed job cuts on the communities they serve. CUPW criticized the lack of consultation with the union and customers regarding the postal service revamp, labeling the situation as outrageous. The union highlighted a stamp price increase earlier in the year and service expansions as potential avenues for Canada Post to recoup its financial losses.
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 announcement of mail delivery business changes, subsequently transitioning to rotating strikes by October 11. Despite disruptions in flyer deliveries in certain regions, addressed mail delivery has continued. CUPW confirmed that negotiations with Canada Post, facilitated by federal mediators, are ongoing.
During the public meeting, Canada Post expressed confidence in reaching an agreement with CUPW, emphasizing a positive outlook for resolving the ongoing disputes.