Hearings Begin for Federal Inquiry Into Canada Post
An inquiry into Canada Post began hearings on Monday, examining a month-long strike that ended with government intervention and addressing the sustainability of the postal service’s business model.
During the Industrial Inquiry Commission, Canada Post CEO Doug Ettinger underscored the Crown corporation’s challenging financial circumstances and the urgent need for change to ensure its financial stability.
At the same time, chief financial officer Rindala El-Hage outlined projections showing increasing losses for the corporation, with Canada Post expected to deplete its cash reserves by the end of July—without accounting for the nationwide postal strike.
Last Friday, the federal government announced a $1 billion repayable loan to support Canada Post’s ongoing operations.
Although this funding provides some temporary relief, Ettinger emphasized that it’s not a lasting solution.
Over 55,000 workers went on strike on November 15 after failed negotiations between Canada Post and the Canadian Union of Postal Workers.
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In December, federal Labour Minister Steven MacKinnon instructed the Canada Industrial Relations Board to mandate employees back to work if a resolution couldn’t be reached by the year’s end.
An industrial inquiry commission was also established to assess the structural and business challenges facing Canada Post and offer recommendations on reaching a new agreement with the union.
A key point of contention between Canada Post and the union was the corporation’s proposal to expand weekend delivery to compete with other carriers and bolster revenue. However, disagreement arose over how the expansion would be staffed, with the union alleging Canada Post’s efforts undermined full-time positions.
