Canada Post saw its seventh consecutive annual loss in 2024, with an operating loss of nearly C$1.3bn (US$940m) and revenues down C$841m (US$608m) before tax.
According to the post, revenues were down across all sectors: parcel volumes fell by 56 million pieces in 2024, resulting in a C$683m (US$494m) revenue loss, largely attributed to the ongoing labor dispute between Canada Post and the Canadian Union of Postal Workers (CUPW) in the fourth quarter.
Transactional mail was down by 187 million pieces – with revenues falling by 5.3% (C$105m/US$75.9m) – and direct marketing revenues fell by C$21m (US$15m) despite a rise in volumes of 102 million pieces.
Doug Ettinger, president and CEO of Canada Post, stated, “Canada Post is Canada’s delivery infrastructure. We have the network, the people and the trusted experience to support all Canadians and Canadian retailers. We must be prepared to do what’s necessary to help deliver for Canada as it navigates a challenging future.
“Our current structure was built for a bygone era of lettermail – the status quo has led us to the verge of financial insolvency and is not an option. The need to change, respond to our challenges and secure this important infrastructure for the future is more urgent than ever before.”
Union negotiations
The financial results come as Canada Post continues to try and resolve issues with the CUPW over workers’ benefits and the future of postal services.
The company estimates that the labor disruption in the last quarter of 2024 contributed a net negative impact of C$208m (US$150m) toward Canada Post’s overall C$841m (US$608m) loss before tax.
The post has now presented its final offers to the CUPW in a bid to end the strike action. Read more on that here.
In response to the offer put forward on May 28, the CUPW stated, “Canada Post’s offer provides no improvements to its current wage proposal, no improvements for Group 1 staffing and no improvements against the contracting out of our work. And while we proposed changes to the employer’s offer on STDP that would have helped both parties, Canada Post stuck to its position. Canada Post says this was its final offer. But this fight is far from over.”