Canada’s mail delivery service, Canada Post, has reported a loss in the first nine months of this year amounting to $20 million dollars.
The Crown Corporation had been phasing out door-to-door delivery and installing community mailboxes in towns and cities across the country. The highly controversial move however came to a halt with the arrival of the new federal government under Liberal leader Justin Trudeau, and said it would work with the new government to develop the best plan for the future
Canada Post had said it needed to end home delivery of mail as a cost saving measure and this latest announcement of a huge loss is expected to restore momentum to the phase out of home delivery. This was news picked up my most press and media groups.
Canada Post is actually several operations, including home mail delivery, Purolator Holdings, (a parcel delivery service), SCI Group Inc., and Innovapost Inc
As for the financial red ink, “Not so fast”, says the Canadian Union of Postal workers.
In it’s own press release answer to CP’s earlier press release, the union says the Crown agency is misleading the public.
“Looking at the report, for the first three quarters, we see an overall profit of almost $30 million ($28 million). Once again, in 2015, Canada Post is on track to surpass its projections,” said Mike Palecek, National President of CUPW.
While the CP headline emphasized the $13 million loss in the third quarter, it was only further down that the CP Group made a third quarter profit of $10 million before tax, and $28 million for the first nine months.
The postal workers union also pointed out that the mail service and all of the group, has a much busier and still more profitable fourth quarter when Christmas mail and parcel delivery picks up dramatically.
A CUPW spokesman said, “There is every reason to expect that the Canada Post Group of Companies and the Canada Post segment will both see a much greater overall profit this year once the busy holiday season is factored into its last quarter”.
The union hopes to stop the phasing out of home delivery saying that Canada Post continues to generate profits and is fudging the figures to justify ending home delivery.
For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.