Canada Post, embroiled in an ongoing labour dispute, recorded a loss before tax of $407 million in the second quarter of 2025 as Parcels results declined sharply due to labour uncertainty.
The second-quarter loss of $407 million marked the Corporation’s largest loss before tax in a single quarter, with profitability deteriorating by $453 million compared to a profit before tax of $46 million in the same period a year earlier. The segment’s loss before tax in the first half of 2025 was $448 million, compared to a loss before tax of $30 million in the same period of the prior year. Over 50 per cent of year-to-date losses occurred in June, when labour uncertainty was at its peak, it said in a news release.
“During the second quarter, the company continued to operate without new collective agreements with its largest union, the Canadian Union of Postal Workers (CUPW). On May 23, 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. 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. Parcels revenue fell by nearly half a billion dollars in the first half of 2025,” it said.
“In the second quarter and first half of 2025, Canada Post’s overall revenue fell by $145 million, or 7.3 per cent1, and by $103 million, or 1.5 per cent, respectively, compared to the same periods of the prior year. The Corporation continues to confront significant operational and structural challenges. Canada Post recently reported a 2024 loss before tax of $841 million – its seventh consecutive annual loss – and is on track to post a larger loss in 2025. From 2018 to Q2 2025, the company lost more than $4.2 billion before taxes, with cumulative losses from operations of over $5 billion. The ongoing labour uncertainty has contributed significantly to the losses in 2024 and this year. Between July 21 and August 1, the Canada Industrial Relations Board (CIRB) conducted a vote for CUPW-represented employees to decide on the Corporation’s final offers for collective agreements. On August 1, the CIRB informed the parties that a majority of voting employees rejected Canada Post’s offers to both the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units. This means negotiations between the parties remain unresolved, but it does not lessen the urgent need to modernize and protect this vital national service.
“Canada Post recorded a loss from operations of $396 million in the second quarter, deepening by $ 127 million compared to a loss from operations of $269 million in the same period a year earlier. In the first six months of 2025, the loss from operations was $507 million, compared to $ 490 million in the same period of the prior year. The loss from operations excludes any income gained from the 2024 divestitures of SCI Group Inc. and Innovapost Inc.
“In the second quarter and the first six months of 2025, total operating costs declined by $18 million, or 0.9 per cent, and $86 million, or 0.7 per cent, respectively, compared to the same periods of the prior year. 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. Despite the lower parcel volumes, two fewer paid days in year-to-date 2025, reduced management headcount and the CUPW-imposed overtime ban in late May, cost pressures from the labour structure and wage increases drove labour cost increases.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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