Canada Post reported at a loss before tax of $407 million in its second quarter as its parcels business fell due to labour uncertainty.
The company says the loss compares with a profit before tax of $46 million in the same period a year earlier when its results were helped by the sale of SCI and Innovapost.
Canada Post is in a fresh round of contract talks with 55,000 postal workers after the employees rejected an offer by the company in a government-ordered vote earlier this year.
It has warned the postal service is bleeding millions of dollars in business daily tied to uncertainty around its collective bargaining.
The company said its mail volume increased in the quarter, but it was largely driven by one-time federal election mailings, while parcels declined sharply as customers chose other carriers due to the labour uncertainty.
Purolator, which is also owned in part by the Canada Post Group of Companies, earned a profit before tax of $82 million in the second quarter, compared with a profit before tax of $81 million in the same quarter a year ago.
