Question Period Note: Canada Post Corporation Financial Stability

Canada Post faces financial challenges due to lower revenues given the ongoing decline in letter mail volumes and the need to operate in the increasingly competitive parcels market. On May 28, 2025, Canada Post’s 2024 Annual Report and 2025-29 Corporate Plan Summary were tabled in Parliament.

Note: Questions regarding the Canada Post labour situation fall under the responsibilities of the Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario and Secretary of State (Labour)

• Despite the ongoing decline in volumes and increase in addresses to be served, Canada Post continues to strive to deliver postal services at a reasonable price, while meeting the expectations of Canadians
  • Like so many other businesses, Canada Post needs to adapt to the changes in how Canadians live and work to remain relevant and viable
  • The Government is working closely with Canada Post to assess the challenges facing the corporation and examine opportunities to improve its financial sustainability and the long-term viability of Canada’s postal system

If pressed on funding for Canada Post:

• The $1 billion announced by the Government of Canada will be a temporary measure that Canada Post will be required to repay
• It will ensure Canada Post can continue to serve Canadians while working with the Government on the changes required to ensure the long-term viability of Canada’s postal system

If pressed on the potential renewed work stoppage:

• The Government is aware that a renewed work stoppage would have a significant and immediate impact on millions of Canadians, small businesses and charities who count on Canada Post, particularly in rural and remote areas
• Collective bargaining is still ongoing, and we encourage the Union and Canada Post to continue to negotiate to reach a fair and balanced deal at the table

If pressed on the Industrial Inquiry Commission:

• The Industrial Inquiry Commission, established by the Minister of Labour, provided a number of thoughtful suggestions and recommendations. I thank Commissioner Kaplan for his important work

Canada Post’s financial results reflect the impacts of the ongoing erosion of letter volumes, the increasingly competitive parcel market, and continued growth in addresses and delivery costs.

In 2024, Canada Post reported a before tax loss of $841 million and a loss from operations of $1.287 billion. The 2024 postal strike, which occurred during one of the busiest and most profitable times of the year for Canada Post, had a net negative impact of $208 million in 2024.

Canada Post’s 2024 losses were partially offset by the divestiture of two of its subsidiaries (SCI Group and Innovapost).

Canada Post’s 2025-2029 Corporate Plan Summary, which was also tabled on May 28, is the first Canada Post corporate plan summary tabled in Parliament in six years.

• Canada Post reported nearly $1.3 billion in operating losses, and a before tax loss of $841 million in 2024, representing the seventh consecutive year of losses, totalling $3.8 billion since 2018
  • Over the last 20 years, the amount of mail Canadians receive has declined by 70%, while the number of addresses has increased by more than three million. This has resulted in lower revenues and higher costs for Canada Post
  • To help Canada Post financially, in January 2025 stamp rates were increased by 25% and the Government of Canada announced its intent to allow Canada Post access of up to $1.034 billion in repayable funding