OTTAWA, August 20, 2015 /CNW/ - The Canadian Union of Postal Workers has reviewed Canada Post's quarterly report and some facts stand out.
- Canada Post remains profitable overall. This year, it is still ahead by 18 million, having made a substantial profit its first quarter.
- Booming parcel business means that Canada Post should not be cutting home delivery as the most safe, secure and convenient way to receive parcels.
- The fall in traditional letter volumes means that Canada Post urgently needs to follow the example set by other postal systems and explore other ways to generate revenue.
- Although The Canada Post Group of Companies experienced a before taxes loss of
$4 million in Q2 it is still profitable for the first 6 months of 2015 to the tune of $18 million. It continues to cost Canadian taxpayers nothing!
- For the first six months of the year Canada Post Group of Companies recorded a profit from operations of $33 million and the Canada Post segment reported a profit from operations of $7 million.
- The before tax loss of the Canada Post segment was $ 31 million for the second quarter and $7 million for the entire first six months. This is entirely the result of the reduction in interest rates which drove up employee benefit costs by $129 million in the first six months of the year. If interest rates remain low it will have a very negative impact on Corporate profits. If interest rates return to their historic norms CPC would be very profitable.
Canada Post continues to hide the results of its study on postal banking from the Canadian public. We demand that this study be produced in its entirety.
SOURCE Canadian Union of Postal Workers
For further information: Aalya Ahmad, CUPW Communications 613-327-1177, [email protected]