Canada Post Co. will sell its third-party logistics business to a Montreal company, according to a Tuesday media release from the Crown corporation.
The sale of SCI Group Inc. to Metro Supply Chain comes as the country’s national postal service is “focused on transforming to meet the changing needs of Canadians and Canadian businesses.” , the release states.
Canada Post is Loss of $290 million in Q3 2023Meanwhile, operating costs increased by $26 million.
According to Canada Post Latest annual reportSCI accounts for less than 3% of a Crown Corporation’s total revenues.
The Canada Post group of companies, which includes Canada Post, courier service Purolator, IT companies Innova Post and SCI, has been in the red for the past five years.
Canada Post did not provide an interview to CBC News, instead responding to questions via email.
SCI operates independently from Canada Post and has its own employees and management team, said Canada Post media representative Lisa Liu.
“It’s a great company, but it’s no longer a good fit.”[s] a company’s long-term strategy and growth plan,” Liu wrote.
SCI provides “warehousing fulfillment, supply chain solutions, and transportation management,” the release said. Retailers pay SCI to warehouse, pick, pack and ship their products, Liu said.
SCI Group manages more than $1 billion in inventory per day in 75 warehouses across the United States and employs 3,000 employees, 353 of whom are members of the Unifor union.
The future of 3,000 employees is in question
Mr Liu said questions about the future of the 3,000 jobs should be directed to the buyer’s Metro Supply Chain.
Metro did not respond to CBC’s questions about what will happen to SCI employees if the sale is completed.
“Until the transaction is completed, Metro Supply Chain and SCI must continue to compete and operate independently in the market. It is business as usual for both companies,” Metro spokesman Serge Vallières said. .
CBC also reached out to Unifor and the Canadian Union of Postal Workers for comment.
The transaction is expected to close in the first quarter of 2024, after which Canada Post will disclose details of the sale in its financial statements, Liu said.
Canada Post customers should not notice any impact, Liu said.