Chair’s message
Canada Post has an important and long-standing responsibility – a duty, in fact – to continue to evolve and serve the changing needs of our country. It has been a hallmark of the postal service for well over a century.
Adapting to change is also essential for the company to continue to operate on a user-pay model and stand on its own financially, as it has for decades. But as we saw in 2024, Canada Post continues to be hampered by outdated operating, regulatory and policy constraints that impede the Corporation’s efforts to transform. Instead of moving forward, the company is being held back.
These various restrictions, combined with the ongoing decline in letter mail and growing competition in parcel delivery, are threatening the future of the postal service.
A challenging year
Many of these same issues were at the centre of Canada Post’s labour disruption late in the year, which had a significant impact on the Corporation, its employees and millions of Canadians. The company understands the significant work that’s needed to rebuild trust with Canadians, and it is committed to being there for them in the future.
On behalf of the entire Board of Directors, I want to thank Canada Post’s employees for their dedication, hard work, perseverance and resilience through this challenging time. Our employees are proud to serve Canadians and their communities across the country. I also want to thank our customers for choosing Canada Post. We appreciate their business and patience as we work to resolve our labour situation.
Urgent changes are needed to preserve this critical national infrastructure
While the Corporation’s financial challenges have been building for a few years, they have now reached a critical point, compounded by the labour disruption. The Board and senior management understand that Canada Post’s deteriorating financial position is unsustainable. The company is on the verge of insolvency. The Corporation can’t continue operating within the same restrictive parameters if the situation is to improve.
The Board, in its oversight role, has an important responsibility to ensure that Canada Post reflects the priorities of Canadians and its shareholder, the Government of Canada. In early 2025, the government reaffirmed that the Corporation “must be put on a path to viability.” With this in mind, the Board remains focused on Canada Post’s dual mandate to serve every Canadian address and be financially self-sustainable, without burdening taxpayers.
Now, more than ever, urgent changes are needed to modernize and preserve this critical national infrastructure. This is an important opportunity to strengthen the postal service for the benefit of the entire country.
The Board fully supports management’s efforts to modernize Canada Post
The Board and management are fully aligned on the significant reforms needed to better serve the changing needs of Canadians and Canadian businesses – and do so in a financially sustainable manner. Canada Post is committed to leading this change to modernize the postal service.
Management has taken important steps in recent years so the company can deliver more for Canadians and businesses in today’s ecommerce delivery market. These investments have improved service across the country: in 2024, Canada Post had the best on-time parcel delivery results in the company’s history. That is a strong foundation to build on.
Carefully managing the postal service
To address the deteriorating financial situation, the Corporation has also cut costs within its control and focused on operating more prudently. These measures have included imposing strict limits on external hiring and expenses as well as cutting positions at management and executive levels.
The company continues to look for efficiencies without impacting service, while focusing on increasing revenue.
Seizing the opportunity ahead
While letter mail remains an important source of revenue for Canada Post, parcel delivery is the foundation of the company’s future growth and success. The Canadian ecommerce market is expected to double over the next decade, providing an enormous opportunity for the Corporation.
But in today’s competitive delivery landscape, the company must adapt to changing customer demands and service expectations – including offering affordable evening and weekend parcel delivery – if it’s to seize this opportunity. The Corporation is working hard to grow the business, yet there is only so much it can do on its own. The constraints Canada Post faces are out of balance with the competitive realities of the industry.
As outlined in this report, Canada Post requires greater flexibility in its delivery model, collective agreements, and regulatory and policy framework to align its services to the needs of a changing Canada and return to financial self-sustainability. This includes flexibility to: better compete in today’s highly competitive parcel delivery market, tailor mail delivery and post office operations to Canadians’ current and future expectations, and implement regulated stamp price increases in a timely manner.
Historic moment to redefine the future of the postal service
Together, Canada Post, its bargaining agents and the Government of Canada have an historic opportunity – and a responsibility – to strategically reposition the postal service and secure its future.
If we fail to act, this critical national infrastructure will fall further behind. It will continue to struggle, with a risk of becoming irrelevant and insolvent. It’s essential that we move with urgency to modernize and preserve the postal service so that it continues to meet the changing needs and expectations of Canadians for decades to come.
André Hudon
Chair of the Board of Directors