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In its annual report released late Friday afternoon, the company predicts “larger, unsustainable losses in future years” without major changes to its operating model.

Canada Post has struggled to compete post-pandemic with the rising number of new, privately owned delivery companies that use what it calls a “low-cost labour” business model.

“These competitors grew rapidly, leaning on their low-cost-labour business models that rely on contracted drivers to provide lower prices, plus greater convenience with evening and weekend service,” the report said.

Earlier this year, the company sold off its IT and logistics departments as part of a transformation plan to save the beleaguered national mail service.

“Canada Post is committed to leading that change, building on the improvements we’ve made across the organization over the last few years,” the company’s president Doug Ettinger said in a news release.

CUPW and Canada Post are currently at the bargaining table to discuss the next collective agreement for workers, who are looking for cost of living increases.


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