Canada Post sees $277M quarterly loss after finalizing new union contract

Canada Post on Friday reported a loss before tax of $277 million in the three-month period from April through June as the union representing roughly 55,000 postal workers ratified a new multi-year deal that ended years of labour uncertainty.

That second quarter loss was up from a $205 million loss in the first quarter of the year, and down from a $407 million loss reported in the same period a year ago, when the company said in a statement that it “was facing a prolonged period of labour uncertainty in negotiations with the Canadian Union of Postal Workers (CUPW).”

During the first quarter of the year, the union was voting on whether to ratify a tentative deal, and the Crown corporation said Friday in a statement that it saw “an early-stage recovery” after solidifying the deal with the union in June, which helped boost customer confidence overall.

Canada Post says its revenue grew $22 million in the second quarter, or 1.5 per cent, compared to a year earlier, with a 20.7 per cent spike in parcel revenues.

In June, the CUPW ratified a new collective agreement that remains in place until Jan. 31, 2029. This was after multiple labour disruptions over the course of nearly two years as the two sides struggled to agree on terms of a new agreement, which also led to compounding revenue losses for Canada Post.

The off-and-on strike action and schedule changes, as well as a general sense of uncertainty amid the negotiations, impacted millions of Canadians and businesses that relied on Canada Post to deliver mail and parcels — especially during the busy holiday seasons.

“The company remains focused on rebuilding customer trust, improving service reliability and growing parcel volumes,” said Canada Post in the statement.

“Canada Post will continue to strengthen its long-term financial sustainability while providing service to Canadians and businesses in all corners of the country.”

Canada Post is undergoing a transition to community mailboxes, which it says will take five years and include multiple phases across the country.

It has also moved to shrink its executive workforce and close some post offices in communities once considered rural, but have since grown to become suburban or urban and are no longer necessary.

The government and the company have said mail services in rural, remote and Indigenous communities will be protected, and that door-to-door delivery can be requested by Canadians with mobility issues or disabilities.

– with files from Global News’ Sean Boynton