The Government of Canada: Significant change is urgently needed to preserve the national postal service

The Government of Canada has informed Canada Post that it intends to make repayable funding of up to $1.034 billion available to the Corporation through the 2025-26 fiscal year.This short-term financing liability, which is within the regulations of the Canada Post Corporation Act, is designed to ensure the Corporation can maintain its solvency and continue operating as it deals with significant financial challenges.This approach will maintain continuity of Canada Post’s operations but will not solve the Corporation’s structural issues. It will, however, provide a temporary financial bridge while Canada Post and the government work together on a plan to secure the long-term viability of a service that millions of Canadians consider essential.Significant change is urgently needed to modernize the operating model and preserve the national postal service to ensure it serves all, while understanding the important role it must continue to play for small businesses, charities and those living in rural and remote communities. Canada Post is committed to working with the government to bring about the major changes needed to serve the changing delivery needs of the country and return to financial self-sustainability. The Corporation has already focused considerable effort on transforming in key areas within its control. These include improving service through facilities upgrades, new sorting equipment, digital platforms and more, while improving safety performance for employees over the last five years.The Corporation has recorded significant annual losses since 2018, fuelled by rapid changes in the postal and parcel delivery sectors, high labour costs and legacy regulatory measures that impede the company’s ability to evolve and compete. The significant ongoing annual losses have forced the postal service to tap into its cash reserves in recent years to address the rising costs of meeting our universal service obligation, maintaining our network, and preserving our services for Canadians. As the Corporation shared in its 2023 Annual Report, without this short-term financing measure, the company would completely deplete its cash reserves by the second quarter of 2025.Weiter zum vollständigen Artikel bei Post&Parcel Weiter zum vollständigen Artikel bei Post&Parcel