Canada Post is facing an impending financial crisis, according to CEO Doug Ettinger, who warned that the Crown corporation’s current trajectory is unsustainable and it is at risk of insolvency. Speaking before the federal Industrial Inquiry Commission (IIC), Ettinger revealed the dire situation as the company struggles to compete with rivals and recover from a costly five-week national postal strike.
In stark terms, Ettinger described the company’s situation as an “edge-of-the-cliff juncture,” comparing it to driving “a 1967 Ford in a Formula One race in 2025,” highlighting the decline in both letter and parcel volumes. He stressed that the financial woes facing Canada Post are not temporary, with the company heading towards insolvency unless decisive actions are taken.
The announcement comes shortly after Canada Post’s dismissal of their chief financial officer and two other senior executives, a move that highlights the seriousness of the situation. Newly appointed CFO Rindala El-Hage revealed that Canada Post is projected to run out of cash by the end of July 2025, a projection that does not account for the ongoing labor strike. The federal government stepped in last week, offering a $1.034 billion loan to keep the corporation afloat in the short term, but Ettinger made it clear that the loan is a temporary fix, not a long-term solution.
“The status quo is not an option,” El-Hage said, stressing the need for drastic changes to secure Canada Post’s future.
The Canadian Union of Postal Workers (CUPW), representing the country’s 55,000 postal workers, has strongly criticized Canada Post’s financial projections, accusing the corporation of using its financial troubles as a pretext for implementing significant service cuts and undermining union bargaining power. CUPW President Jan Simpson accused the company of “union-busting” and pointed to previous instances of Canada Post misrepresenting its financial situation to justify service reductions and employee concessions.
Canada Post has indicated that it will operate under the terms of the expired contract until a new agreement is reached. The IIC, appointed by Federal Labour Minister Steven MacKinnon, will continue hearings until May, aiming to find a resolution to the labor dispute and address the corporation’s financial challenges.
Ettinger emphasized the need for a long-term solution, warning that the company’s losses are expected to increase unless the fundamental issues are addressed.
The IIC’s next hearings are scheduled for February and March, with the commission expected to report its findings by mid-May. As Canada Post grapples with both financial instability and labor unrest, its future remains uncertain, with major decisions ahead to restore the corporation to viability.
With files from the Canadian Press
