Canada Post and the Canadian Union of Postal Workers have received their full report from the Industrial Inquiry Commission, tasked with providing recommendations to help save the organization as it teeters on the brink of bankruptcy and extinction.
The Industrial Inquiry Commission, led by William Kaplan, labour negotiator and former University of Ottawa law professor, released its full report on Friday.
Kaplan said he was tasked with evaluating Canada Post’s financial situation, viability, delivery model, and more.
“My recommendations are based on my conclusion that there is a way to preserve Canada Post as a vital national institution,” wrote Kaplan.
The final report included seven recommendations, which Kaplan said, if implemented, could return Canada Post to some degree of financial viability.
Canada Post previously reported losing $3 billion since 2018, following seven years of consecutive losses. In January, the federal government granted Canada Post a $1.03 billion line of credit to prevent collapse, which is intended to be repaid.
“Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate,” reads the report.
One recommendation is for Canada Post to amend the Postal Charter because it has “impossible-to-meet delivery standards.” One change would be phasing out daily door-to-door letter mail delivery.
Another recommendation urges Canada Post to become more flexible with employees, allowing them to work part-time and on weekends, while paying them the same rate and giving them the same benefits as normal employees.
The Canada Post strike began on November 15, 2024, and lasted just over a month. However, the report warned that the damage done may be everlasting.
“The recent labour dispute resulted in a further, measurable, and almost certain permanent desertion of long-standing customers who moved their business elsewhere and who have advised Canada Post that they are never coming back (especially absent long-term collective agreements and the certainty they provide against further labour disruptions, particularly in peak season),” reads the report.
The Canadian Federation of Independent Business highlighted that the strike cost small businesses $76.6 million daily and surpassed a total cost of over $2 billion.
The report said that many proposals made by the CUPW were “unrealistic or duplicate services already provided by others.” Instead of focusing on providing new services, the report concluded that Canada Post should focus on saving its core business.
With collective agreements set to expire on May 22, the Commission warned that unless both sides find common ground, further strikes or a full lockout could lead to Canada Post’s permanent decline.
Former Labour Minister Steven MacKinnon was heavily involved in mediating the negotiations between Canada Post and the CUPW.
Prime Minister Mark Carney’s recent cabinet announcements did not include a labour minister, as it was delegated to a junior cabinet position.
Kaplan warned that Canada Post is effectively insolvent in its current configuration, and without immediate reforms, yearly losses will continue to grow.
“The Government of Canada needs to decide how much of a subsidy it is prepared to allocate to the corporation annually, and for how long,” he wrote.