Canada Post reports $94-million loss before tax in third quarter
Canada Post hasn’t had a great few months. And crucially it is currently in the midst of a strike situation with its union partners which is causing it genuine problems that will likely mean postal backlogs well into next Spring. And that really does only add to the poor and troubled outlook the company is looking at right now.
Specifically, the company has reported disappointing earnings in the past few months and posted signifiant financial losses. In the third quarter Canada Post has lost a total of $94 million Canadian dollars.
As the company says of their situation, and you can read the full report here:
Canada Post recorded a loss before tax of $94 million for the third quarter of 2018, mainly due to the costs of implementing the final pay equity ruling, which will adjust how much delivery employees in suburban and rural Canada (RSMC) are paid. If not for the pay equity costs related to prior years, the Corporation would have reported a small profit before tax for the first three quarters of 2018. The impact of pay equity and ongoing rotating strikes are major factors in the Corporation expecting to end 2018 with a loss.
– Canada Post
It’s worth considering whether there is a universal problem that is a risk for national postage providers. On one level, they are required to offer services that are not lucrative or even profitable. But they also enjoy decent privileges too. Substantial profile on the High Street is one advantage. And many also enjoy subsidies from governments too.
Canada Post has, however, said that it will be working with eBay to protect ecommerce merchants. eBay has said too that sellers will continue to be unhindered as the strikes continue:
Should a work disruption occur, eBay will ensure that sellers are not penalized for the delayed arrival of shipments originating or terminating in Canada. eBay will monitor and remove defects associated with shipping delays caused by any Canada Post disruption. eBay will also monitor and adjust estimated delivery dates and eBay Money Back Guarantee timelines.
– eBay Canada
Canada Post workers as with most unionized workers in Canada are in denial about their real worth. I still haven’t received mail from mid October and November when the rotating strikes began in Toronto Canada and apparently 700 tractor trailer loads of undelivered mail sitting in Mississauga and it is now January 2019. A recent report shows the average auto worker at GM Oshawa makes $ 108,000 with benefits included and you wonder why GM is closing the Oshawa plant. People complain about the price of cars and yet look at what the workers are being paid. They should accelerate ROBOTICS. Same with the school teachers strikes at all levels. These people all feel entitled to more and more money and get 3 months off in summer and yet they shop at Wallmart where staff paid $ 15 an hour. Teachers are huge hypocrites. The greed of union people now will result in no union jobs for their kids in the future.