OTTAWA — Canada Post posted a steep second-quarter loss of $407 million before tax, as labour unrest drove customers to rival parcel carriers and wiped out gains from higher mail volumes.
The loss marks a sharp reversal from the same quarter last year, when the Crown corporation reported a pre-tax profit of $46 million, boosted by the sale of subsidiaries SCI and Innovapost.
The postal service is currently in a tense round of negotiations with 55,000 unionized workers, after employees rejected a contract offer in a government-ordered vote earlier this year. Canada Post has warned that uncertainty surrounding collective bargaining is costing it millions of dollars in lost business every day.
While overall mail volumes rose in the quarter, much of that increase was tied to one-time federal election mailings. Parcel volumes — a core growth area in recent years — dropped sharply as businesses and consumers shifted to other carriers.
By contrast, Purolator, part of the Canada Post Group of Companies, reported a profit before tax of $82 million, nearly flat from $81 million a year earlier.
The results underscore the financial strain facing Canada Post as it tries to modernize operations, retain parcel market share, and resolve its labour disputes — all while competition in the delivery sector continues to intensify.