On July 28, Canada Post announced a staggering $407 million loss for its second quarter. They blame this drop on a double digit drop in parcel volumes after most customers shifted to alternate carriers from UPS because of continued labour instability. The firm called the alert. Collectively, they are costing our nation millions of dollars every day due to the dislocations that are inherent to every collective bargaining negotiation.
And just last week, Canada Post announced record growth in mail volume for the past quarter. This increase was largely driven by temporary, federal election-related mailings. This gain was completely eclipsed by a huge decrease in parcel deliveries. During his answer, the company’s exec emphasized that the customers are selecting various delivery methods. This change is largely the result of fears stemming from uncertain labor negotiations.
Things came to a head on May 23 when the union called for an overtime ban, which was a sufficient level of action to cripple operations. In addition to the implementation turmoil, Canada Post fell off a cliff in parcel volumes. To address these issues, the company shared its intentions. Effective soon, it will restrict weekend mail service to only those critical functions that include parcels delivery, parcel delivery only, parcel it appears permanent, announc.
Canada’s parcel services were coming under fire, Canada Post was able to claim successes elsewhere in its revenue streams. Direct marketing revenue came in at $233 million, but that is down from $256 million last year. The company saw a 13.2 percent decrease in direct marketing volumes. This drop underscores the critical importance of making focused and strategic changes in that field.
Transaction mail revenue went through the roof, exploding to $732 million compared to $579 million last year at this time. Transaction mail volumes were up by 3.5 percent. The more than 15% increase in operating income shows the pressure of a strong, sustainable demand for traditional mail services—even despite the pandemic-related back offices and labor challenges.
Revenue from Canada Post’s consumer products and services jumped up $68 million. That’s up tremendously from $55 million in the same quarter last year. This increase is indicative of the company’s strategy to diversify its product portfolio and respond to shifting consumer demands.
