Canada Post posted a second-quarter pre-tax loss of $378 million on Friday as the COVID-19 pandemic weighed on its operations and a labor arbitration tribunal decision pushed up its costs.
Canada Post’s loss for the quarter ended June 27 compared to a loss of $50 million for the same period last year. Revenues declined 0.7% to $1.63 billion.
The health crisis impacted the segment by $164 million. The June 11 arbitration tribunal decision paving the way for new employment contracts with the Union of Postal Workers increased costs by $114 million.
However, even without these items, Canada Post’s sector would have posted a loss, the report says.
Canada Post noted that containment measures to limit the spread of the new coronavirus and business closures have resulted in “unprecedented growth in volumes and revenues” in its parcel business.
However, “as mail and advertising became scarcer,” the decline in volumes and revenues from transaction mail and direct marketing was greater than the growth in the parcel division, the corporation said.
The Canada Post Group of Companies, which includes Canada Post, Purolator, SCI and Innovapost, posted a loss of $333 million in the second quarter, compared to a profit of $11 million in the same period last year.
Source: The Canadian Press