Canada Post reports $60m Q3 loss

Canada Post reports that it lost CN $60 million before tax in the third quarter (Q3) of 2016 compared to a loss of CN $13 million in the same quarter of 2015.

In a statement posted on Friday, Canada Post emphasised that this was a period “when the risk of a work disruption prompted commercial customers to make other arrangements to deliver their parcels and mail”.

The Canada Post statement continued: “The net financial impact of the labour uncertainty is estimated at $100 million for the third quarter. That figure reflects the significant reduction in revenue but also includes slightly lower costs, such as less use of overtime and temporary employees, because volumes had declined sharply in all lines of business.

“The Corporation and the Canadian Union of Postal Workers reached tentative agreements on August 30, 2016, but volumes took much longer to recover.

“Employee benefit expenses were also lower in the third quarter due to a $44-million non-cash one-time gain, resulting from the new collective agreement with the Canadian Postmasters and Assistants Association (CPAA) in August 2016.”

The Canadian government, which halted its predecessor’s reforms to the Canadian postal service, has instituted a review into how to revive Canada Post. As previously reported by Apex Insight, a recent survey suggests that the idea of urban postal collection points is one of the previously unpopular ideas that may be instituted. Canada Post is not unusual in making losses due to the digitisation of communications but with its vast distances between rural addresses it has some unique problems…

 
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