The Finance of Canada Post Corp. continue to deteriorate as the Crown Corporation reported its worst quarterly results, which it attributed to the current work struggle.
“The ongoing work uncertainty has contributed significantly to losses in 2024 and this year,” said Canada Post in a statement.
Its loss of $ 407 million in the second quarter was its worst in a single quarter, compared to a gain of $ 46 million before taxes a year ago, blaming a strong 37 percent decrease in revenues and the volume of delivery of packages.
Losses in the first half before taxes totaled $ 448 million, compared to $ 30 million in the first half of 2024.
“More than 50 percent of annual losses occurred in June, when job uncertainty was at its peak,” said Canada Post.
Crown Corporation lost $ 841 million before taxes in 2024, with losses from 2018 to the second quarter of 2025 for a total of more than $ 4.2 billion.
He said he is on his way to registering an eighth consecutive annual loss in 2025 and hopes to be greater than the loss of 2024.
Labor problems have shaken the Canada post since approximately 55,000 employees represented by the Canadian Union of Postal Workers (CUPW) were on strike, thus stopping the deliveries for a period of 32 days from November 15 and ending on December 17 after the federal government ordered the group to return to work.
On May 23, the service received another success when CUPW ordered an overtime detention by its members.
Cupw and Post Canada have been working without a contract since May 22, when an extension of their collective agreement expired.
The spectrum of more strike actions in May, since the prohibition of extra time entered into customers.
“The results of the plot decreased sharply since the activity of the strike and the work uncertainty led to the clients to other carriers for their deliveries,” said Canada Post, added that the income of the plots decreased almost $ 500 million in the first half.
In the second quarter, the income of the plots fell at $ 288 million, or 36.7 percent, as the volumes were reduced by 25 million pieces, or 36.5 percent, compared to the same period of the previous year.
During the first six months of the year, the income of the plot fell $ 482 million, or 29.6 percent, and the volumes fell 43 million pieces, or 31.1 percent, compared to a year ago.
But the plots were not the only sector he suffered.
Direct marketing revenues fell $ 23 million, or 7.5 percent, in the quarter and $ 12 million, or one percent, for the first half compared to last year.
“Labor uncertainty affected the business line when customers sought to avoid the possibility that emails are trapped in the postal network,” the company said.
The regular mail increased in the second quarter, but the Crown Corporation attributed that to the federal elections and said that the mail is in “secular decline.”
The Canada Post Purolator Division registered a $ 82 million gain before the tax, compared to a gain of $ 81 million a year ago.
• Email: gmvsuhanic@postmedia.com
