Canada Post’s top executives warned of “unsustainable” finances and the need for “significant changes” to survive. The federal government has little to say about what solutions are necessary.
At the Crown corporation’s annual general meeting on Wednesday, board chair André Hudon said the national mail carrier is at a “critical juncture” struggling to compete against e-commerce platforms like Amazon and facing dropping demand.
The ministry overseeing Canada Post has not approved a corporate plan since 2020 and hasn’t signed off on a submitted plan that would take the organization into 2028.
Concerns about the future of Canada Post revolve around the cost to taxpayers to cover fiscal gaps through more government funding or potential service cuts to reduce budget strain. Ensuring all Canadians can receive mail is also a concern.
A spokesperson for Public Services and Procurement Minister Jean-Yves Duclos’s office told Global News that the government will “continue to work closely with Canada Post to secure its long-term future,” as announced in Budget 2024.
The government is also considering leveraging Canada Post’s portfolio of federal properties to build more housing for Canadians. Postal service maintenance is crucial as part of Canada Post’s mandate as a ‘service first’ organization focused on delivering mail.
Opposition politicians and analysts warn that time is running out, stressing the need for a viable plan going forward to support public postal service into the future. Passive responses from various parties are adding to the urgency of addressing the challenges faced by Canada Post.
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