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Canada Post getting another $673M in federal funds to stay afloat

Click to play video: 'Canada Post announces addresses which will lose door-to-door delivery in its 1st phase'
Canada Post announces addresses which will lose door-to-door delivery in its 1st phase
The dispute between Canada Post and its union employees could be coming to an end. Letter carriers are voting on whether to accept a new agreement. Nathaniel Dove looks at the terms and what the union says they won't accept – Apr 17, 2026

The federal government is handing hundreds of millions of dollars to Canada Post to keep the money-bleeding mail service afloat for the current fiscal year.

A cabinet order gives the beleaguered Crown corporation up to $673 million so it can “meet its operating and income” demands through next March.

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Last year Ottawa authorized a $1.03-billion cash injection for Canada Post, followed by another billion dollars in extra repayable funding when the initial amount proved too small.

Carleton University business professor Ian Lee says the postal service will likely need hundreds of millions more to make it through the year, given its unprecedented $1.57-billion loss before tax in 2025.

As workers vote on a contract after years of disputes and declining letter demand, Canada Post says it must modernize through reforms that include community mailboxes and possible post office closures.

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Canada Post and the union have sparred over wages and structural changes to the Crown corporation for more than two years, with workers taking to the picket line repeatedly.

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