Canada Post Is “Effectively Insolvent,” Says Mediator

Canada Post is “effectively insolvent,” warns federal mediator William Kaplan, who urges a sweeping overhaul of the Crown corporation’s mandate if it is to survive imminent labour and financial crises.

Kaplan’s report recommends allowing Canada Post to shutter additional rural post offices, expand community mailboxes and introduce weekend parcel delivery staffed by part-time workers. He further proposes phasing out door-to-door letter delivery—retaining daily service only for business customers—to arrest mounting losses in its legacy operations.

With negotiations stalled and a strike or lockout deadline of 12:01 a.m. on May 22 looming, Kaplan expresses deep skepticism that conventional bargaining or binding arbitration can bridge the gulf between Canada Post and the Canadian Union of Postal Workers.

“Given what has occurred to date, it seems unlikely that free collective bargaining will be successful in bridging the divide,” he wrote.

READ: Postal Strike Drags On as Union, Canada Post Remain Deadlocked

All three of Canada Post’s business lines are under pressure: letter volumes are in “rapid decline because of electronic substitution,” flyers are declining amid “the shift toward digital marketing,” and parcels—despite growing overall volumes—are losing ground to private competitors. The once-reliable subsidy model, where urban letter profits offset high rural delivery costs, “no longer works,” Kaplan argues.

Minister Patty Hajdu calls the report’s proposals “thoughtful suggestions on how to continue good-faith negotiations,” while Canada Post CEO Doug Ettinger praises its “frank and straightforward assessment of the challenges we face.”

For 2019 to 2023, Canada Post’s parcel market share plunged from 62% to 29%.


Information for this story was found via Toronto Star and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Canada Post Starts Layoffs, Union Calls it ‘Scare Tactic’

Canada Post has begun laying off workers amid an ongoing national strike, as mediation efforts...

Friday, November 29, 2024, 07:25:17 AM

Canada Post Strike: Holiday Shopping Hit as Carriers Suspend Canada Service

The Canada Post strike has triggered a cascade of shipping disruptions, with major international carriers...

Friday, December 6, 2024, 02:04:00 PM

Seven Years of Losses: Canada Post Reports $315 Million Loss In Q3 2024

Canada Post’s financial performance in the third quarter of 2024 reflects deep-seated challenges as the...

Friday, November 22, 2024, 09:34:51 AM

Canada Post, Union Deadlock Threatens Second Postal Disruption in Six Months

The Canadian mail system faces its second major service interruption in less than a year...

Tuesday, May 20, 2025, 11:19:00 AM

Canada Post Sees Second Quarter Loss Of $378 Million Due To Pandemic

Only a government-run postal entity could manage to lose funds as a result of the...

Friday, August 21, 2020, 01:47:00 PM