The Federal Corporation announced on Friday that the Federal Government plans to lend $ 1 billion to the Canada Post Office in the 2025-26 fiscal year so that the Canada Post Office can continue its business while dealing with “serious financial issues”. did.
In Canada Post, Ottawa makes it possible to use the funds that can be repaid within the regulations of the Canadian Post Corporation Law, but this fund, which is $ 1,034 million, is only a temporary financial support. It states that it does not solve the structural problem of crown corporation.
Postal government has said in news that it has been cooperating with the government for “plans to secure long -term survival of services that can be used by millions of Canadians.”
The Canadian Post has lost $ 3 billion since 2018 due to the decline of letters and the erosion of small packet market share by major competitors. The Postal Public Corporation also states that some of the causes of loss lies in “high labor costs and conventional regulation measures.”
The Canadian Public Service and Proculation Agency states that the funds will be provided as needed to pay non -discretion obligations.
The Canadian Post Office warned in an annual report in 2023 that if there was no additional borrowing and refinancing, the funds would be depleted by the second quarter of 2025. The Canadian post office recently raised the price of stamps by 25 %.
Last fall, when the Canadian Postal Union, which represents postal workers, striked, the work was temporarily suspended until the federal government intervened to the end of the labor dispute.
