Canada Post has recorded its largest loss in a single yearly quarter as labour negotiations continue with the union representing about 54,000 workers.
On Tuesday, Canada Post reported a loss of $407 million before tax during April, May and June.
The corporation said it had lost $448 million in the first half of the year.
Canada Post said over 50% of year-to-date losses happened in June, when labor uncertainty was at its peak.
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During that time, the company continued to operate without new collective agreements with the Canadian Union of Postal Workers (CUPW).
In May, CUPW initiated strike action by refusing to work overtime across the company, producing more uncertainty for Canada Post’s customers following CUPW’s 32-day national strike in late 2024.
That overtime ban remains in effect.
“While Transaction Mail improved in the second quarter largely due to one-time federal election mailings, Parcels results declined sharply as the strike activity and labour uncertainty drove customers to other carriers for their deliveries,” the corporation said in a news release.
However, revenue from parcels fell by $288 million or 37% during the second quarter.
According to the corporation, profitability dropped by $453 million before tax compared to a profit drop of $46 million in the same period in 2024.
Canada Post recorded a loss from operation of $396 million in the second quarter, up from the $269 million lost during the same period last year.
When looking at the first six months of 2025, Canada Post lost $507 million from operations.
“Lower parcel volumes led to a decline in collection, processing and delivery costs, and non-capital investments decreased as the company continued to refocus its investment priorities,” the corporation said.
Despite lower parcel volumes, two fewer paid days in year-to-date 2025, reduced management headcount and the CUPW-imposed overtime ban, cost pressures from “the labour structure and wage increase” caused a spike in labour costs.
The corporation said it continues to face “significant” operational and structural challenges.
Last year, Canada Post reported a net loss of $841 million last year.
That marks the seventh consecutive annual loss and it is expected the total loss in 2025 will be even larger.
Canada Post said the ongoing labour uncertainty is contributing significantly to the losses and there is no end in sight.
In early August, CUPW members rejected Canada Post’s latest offer and both parties returned to the negotiating table in mid-August with help from federal mediators.
To date, no agreement has been reached and negotiations continue.
