Canada Post faces critical juncture amid mounting losses
Canada Post's board says the Crown corporation is at a "critical juncture," as it faces competition from private carriers, it's considering adding delivery on weekends.
Canada Post is at a tipping point, and it has been for some time, according to economics professor Moshe Lander.
"Those losses now run into the billions of dollars every single year," Lander said in an interview.
The postal service lost $748 million last year and has been reporting losses since 2018. In the last six years, its deficits have totalled $ 3 billion.
Its sizeable network of mail couriers servicing the whole country is just one factor bringing down the Crown corporation, Lander said.
"They now face competition in the 20th century with UPS, Purolator, CanPar and FedEx. They didn't necessarily exist in Canada before but even if they existed, they weren't necessarily trusted the way the Canada Post was," he noted.
He also points to declining mail volumes as another sore point, especially as Canadians increasingly pivot to online mail delivery.
This week, Canada Post's board chair, Andre Hudon, said significant change is urgently needed to keep the organization afloat.
Some experts say it doesn't help that the organization is the only competitor in the industry that doesn't offer weekend delivery.
The Crown corporation's CEO, Doug Ettinger, said that they are considering moving to a seven-day-a-week delivery model. A move Lander argues against.
"The idea of expanding service… It's not like it's going to create more mail. This is exactly the wrong director for any company that's trying to survive," Lander explained.
Canada Post declined an interview request, saying it wouldn't comment on the topic as negotiations with the Canadian Union of Postal Workers continue.
CTV News contacted the union but did not hear back in time for publication.
CTVNews.ca Top Stories
4 charged with manslaughter, forcible confinement in Burnaby 19-year-old's death: IHIT
More than a year after a Burnaby man was killed during a home invasion, charges have been laid against four suspects for their alleged involvement in the fatal incident.
Ottawa woman dies after battle with pancreatic cancer
An Ottawa woman who raised more than $500,000 for cancer research at the Ottawa Hospital has died after a lengthy battle with pancreatic cancer.
Northern Ontario beekeeper says she lost nearly 2 million bees this season
CTV News Northern Ontario provides and update on the story of more than 1.5 million bees be lost earlier this summer.
How a false rumour about pets in Ohio and Laura Loomer’s presence helped derail Trump’s planned attacks on Harris
Donald Trump wanted to spend this week attacking one of Democratic rival Kamala Harris' biggest political vulnerabilities. Instead, he spent most of the week falsely claiming that migrants are eating pets in a small town in Ohio and defending his embrace of a far-right agitator whose presence is causing concern among his allies.
Andrew Scheer avoids answering if Conservatives will cancel dental care program
Conservative House Leader Andrew Scheer won't say whether his party will scale back or fully scrap Canada's federal dental care program, despite new data showing nearly 650,000 Canadians have used the plan.
'We're at a high degree of spread': What you need to know about COVID-19 in Ontario
As we head into another respiratory illness season, here’s a look at where Ontario stands when it comes to COVID-19 and what you need to know.
A landslide triggered a 650-foot mega-tsunami in Greenland. Then came something inexplicable
It started with a melting glacier that set off a huge landslide, which triggered a 650-foot high mega-tsunami in Greenland last September. Then came something inexplicable: a mysterious vibration that shook the planet for nine days.
Staff member hospitalized after assault at B.C. maximum security prison
A corrections officer at B.C.'s only maximum security federal prison was taken to hospital after an assault earlier this month.
Jane's Addiction concert ends early after Perry Farrell throws punch at Dave Navarro
A scuffle between members of the groundbreaking alternative rock band Jane’s Addiction came amid 'tension and animosity' during their reunion tour, lead singer Perry Farrell’s wife said Saturday.