Ottawa Extends $1 Billion Lifeline to Canada Post

 

The federal government has announced a $1 billion loan to Canada Post to help the Crown corporation maintain its operations amid significant financial challenges. The funding, which will be provided through the 2025-26 fiscal year, aims to ensure that Canada Post can continue to meet its non-discretionary obligations and avoid running out of cash.

Canada Post has faced substantial annual losses since 2018, driven by rapid changes in the postal and parcel delivery sectors, high labor costs, and legacy regulatory measures. The loan is intended to serve as a temporary financial bridge while the government and Canada Post work together on long-term changes to secure the viability of the postal service.

The announcement comes after a strike by Canada Post workers late last year, which brought mail delivery to a halt until the federal government intervened to end the job dispute. Public Services and Procurement Canada emphasized that the funding is necessary to ensure continuity of operations but will not solve the structural issues facing the corporation.

Canada Post has committed to working with the government to modernize its operating model and return to financial self-sustainability. The corporation has already made efforts to improve service through facilities upgrades, new sorting equipment, and digital platforms.