Canada Post CEO Says He Supports Ottawa’s Measures to Strengthen Finances

A Canada Post sign is seen in Montreal on Aug. 19, 2025. The Canadian Press/Christinne Muschi

The CEO of Canada Post says he supports the government’s plans to bolster the Crown corporation’s finances and hinted that major workforce reductions could be on the horizon.

Doug Ettinger’s remarks were delivered this week via an open letter as a national strike by postal workers continues. The strike is a reaction to the sweeping changes announced by Procurement Minister Joël Lightbound on Sept. 25, which he said are necessary to curb Canada Post’s financial losses as mail volumes continue to decline.

Ettinger said Canada Post must adopt a “leaner” approach to ensure its operations meet the modern demands of the country.

“Serving a country as large as Canada will always be labour-intensive, but we’re overstaffed,” he wrote in the letter published on Oct. 1. “With thousands of employees eligible to retire over the next five years, we can minimize the impact on our people.”

The 55,000 members of the Canadian Union of Postal Workers (CUPW) walked off the job on Sept. 25 in response to Lightbound’s announced changes, which include transitioning away from door-to-door delivery for four million additional addresses in favour of community mailboxes.

Lightbound announced last week that Ottawa plans to implement all the recommendations made by Industrial Inquiry Commissioner William Kaplan in a report he submitted to the government in May to improve Canada Post’s fiscal situation as the agency faces a $1.5 billion loss this year.

The report also calls for the moratorium on closure of 4,000 rural post offices to be lifted, simplifying the process for raising postage rates, and switching non-urgent mail from air to ground transport.

Ettinger said less than one in four households still receives door-to-door delivery, making community mailboxes a low-impact way to fuel “significant savings,” but noted the agency needs to continue to meet the needs of small businesses across the country.

He also applauded the move to close post offices that are no longer necessary.

“So many post offices that were once rural are now in bustling urban or suburban areas with other post offices in nearby stores and pharmacies,” he said. “In these now overserved areas, we need to update our retail network.

The union criticized the upcoming changes in a recent press release, saying the government is ignoring the impact the changes could have on “mail volumes and confidence in service.”

Labour Issues

Ettinger called the labour situation “extremely challenging,” but said Canada Post remains committed to reaching new agreements at the bargaining table.

“It’s vital these agreements reflect our financial reality and support the changes we need to make – while helping us stand on our own, without taxpayer funding,” he said.

The financial challenges of the Crown corporation have been a major issue as the talks between the two parties persist.

While Canada Post continues to point to Kaplan’s report which called the agency “effectively insolvent, or bankrupt,” the union has said the Crown corporation should not blame “labour uncertainty” for its financial woes.

“Canada Post continues to pin the blame for its financial performance on its workers,” the union said in a previous statement, but noted in an Oct. 1 press release that its members would continue to fight to save jobs and essential postal services.

“Now more than ever, we must come together and fight for our public post office, save jobs, and defend the services that Canadians rely on,” the union said.

The financial challenges of Canada Post have been a major issue as the talks between the union and the Crown corporation persist.

The agency incurred roughly $5 billion in losses between 2018 and 2025. The corporation recorded a $1.3 billion shortfall in 2024 and sought a $1 billion federal bailout in January 2025. In addition to the anticipated $1.5 billion deficit for this year, the Crown corporation disclosed a pre-tax loss of $407 million for the second quarter in August.

Canada Post has said the financial burden stems largely from a sharp decline in parcel revenues.

The past 18 months have seen ongoing labour negotiations, including a month-long strike during the holiday season at the end of last year.

Union members voted down what Canada Post said was its final offer in early August. The offer included a 13 percent wage hike, 6 percent below the union’s 19 percent ask.

The union put forward a counter-proposal on Aug. 20, which Canada Post said added significant new costs and restrictions at a challenging time for the postal service as the two sides grapple with trying to find common ground on issues like weekend delivery.

Canada Post has said it would present new global offers in the coming days.

The Canadian Press contributed to this report.