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.
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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.
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.
Describing the post as “money-bleeding” is cartoonishly disingenuous. For shame. It is a public service that millions of Canadians rely on. How much revenue do the Armed Forces generate, if I might ask?
waahhh this is an outrage, i want all my taxes to be funneled directly into the military and whoevers paying “Staff” to write this Right Now!!!
Must need the extra funds to cover the hours the workers are creating by delivering mail to the wrong addresses. I can just hear it now “My work load increased for some reason”. Put a box at the end of the street. End of story.
We can easily fund our critical mail services by cutting the CBC budget.
Well, obviously it’s best to buy off your voters by spending Other People’s Money to keep your “going broke company” in business… at least, there aren’t 2.2 million people (including tens of thousands of children) lining up at Food Banks each and every month… oh, wait…
Thank you Mr. Carnage, this is another waste of taxpayers money.
So, we are subsidizing the marketing for large corporations.
Aka flyers
ever since cp announced no home delivery, well my mailman must have started early with no home delivery. My pension cheques were not delivered as usual either a week before or day before due date BUT has started to deliver them ON THE DUE DATE. Haven’t had a hydro bill for the month of April, called hydro and they have been mailed. Still none. Postal office can’t tell so would like to know what the H this mailman is doing?
Canada post has a very large surplus in its pension fund. 7 to 9 billion.
This money is available to be put back in CP or used to action early retirements and of course refunds to members for their contributions.
CP can finsncevitsekf while making the structural changes to ensure a successful future.
Stirling norris
709 728 3016
Shocking. Let’s keep flogging the dead horse.
If this was just another regular business, it would have folded years ago. Stop bailing them out. Let them sink and let the greedy union workers find real jobs. The amount of money spent to keep this failing entity afloat is atrocious.
Unions, what a horrible blight to the great country.
Carney is a dweeb for doing this.
Didn’t carney say he wasn’t going to bail them out anymore?
This is a colossal waste of tax payers money. Nwarly all cities in Canada have stalled affordable housing, zero efforts addressing homelessness, food insecurity, outrageous prices on essentials, gas, homes, the list goes on! Let it go under. They will just want another Billion $ next year, after more mismanagement & employee strikes galore! Ridiculous.
Wonder what Brookfield’s cut was?
Canadian’s can’t afford groceries and this is what our government spends our hard earned tax payer money on? Let the ship sink!!
Canada post is and always will be joke! Defund now!
“A cabinet order gives the beleaguered Crown corporation up to $673 million so it can “meet its operating and income” demands through next March.” OH GOODY, TIME FOR THE UNIONS to demand more pay for all their employees, same as they have been doing in the past making using the postal service to expensive to use for most canadians now. THIS IS WHAT UNIONS DO. Destroy businesses and increase cost of goods and services.
A useless gov’t sending another $623MM tax dollars to a useless postal system. Again, showing zero regard for tax payers.