Canada Post lost $407 million in the second quarter amidst an ongoing contract dispute, the Crown corporation announced Tuesday.
That pre-tax loss is down from a $46 million profit in the second quarter last year.
“Parcels results declined sharply as the strike activity and labour uncertainty drove customers to other carriers for their deliveries,” the Crown corporation said in a press release announcing the results.
Parcel revenue dropped by more than a third, down by $288 million, as Canada Post delivered 25 million fewer packages in the second quarter than it did a year earlier.
Contract negotiations between Canada Post and the Canadian Union of Postal Workers have dragged on for more than 18 months and led to a month-long strike late last year.
Earlier this month, CUPW members rejected the Crown corporation’s “final” contract offer in a vote overseen by the Canada Industrial Relations Board after an order from federal jobs minister Patty Hajdu.
Canada Post has argued it needs a dramatic restructuring of its operations, an argument supported by a key report from veteran mediator William Kaplan in May.
In his report, Kaplan said the Crown corporation was effectively insolvent.
Kaplan also said that there’s an impasse in bargaining, suggested arbitration wouldn’t be a good choice to deal with Canada Post’s need for restructuring, and said a “final” offer would be the third option for an end to the dispute.
Kaplan’s May 15 report suggested the use of community mailboxes, the elimination of home delivery except for parcels, and getting rid of some post office locations and replacing them with franchises.
Kaplan also suggested expanding parcel delivery to seven days a week, with the use of part-time and temporary employees.
CUPW members have been in a legal strike position since May 23, but their strike action has so far been limited to a ban on overtime work.
