Canada Post Corp.

‘s finances continue to deteriorate as the Crown corporation reported its worst-ever quarterly results, which it attributed to ongoing

labour strife

.

“The ongoing labour uncertainty has contributed significantly to the losses in 2024 and this year,” Canada Post said in a release.

Its $407-million loss in the second quarter was its worst ever in a single quarter, compared with a $46-million profit before taxes a year ago, blaming a sharp 37 per cent decline in parcel delivery revenue and volume.

First-half losses before taxes totalled $448 million, compared with $30 million in the first half of 2024.

“Over 50 per cent of year-to-date losses occurred in June, when labour uncertainty was at its peak,” Canada Post said.

The crown corporation lost $841 million before taxes in 2024, with losses from 2018 to the second quarter of 2025 totalling more than $4.2 billion.

It said it is on track to record an eighth consecutive annual loss in 2025 and expects it to be larger than 2024’s loss.

Labour issues have rocked Canada Post ever since approximately 55,000 employees represented by the

Canadian Union of Postal Workers

(CUPW) went on

strike

, thereby halting deliveries over a 32-day period starting Nov. 15 and ending Dec. 17 after the group was ordered back to work by the federal government.

On May 23, the service took another hit when CUPW ordered a halt to all overtime work by its members.

CUPW and Canada Post have been working without a contract since May 22, when an extension to their collective agreement expired.

The spectre of more strike action in May as the overtime ban took effect drove customers away.

“Parcel results declined sharply as the strike activity and labour uncertainty drove customers to other carriers for their deliveries,” Canada Post said, adding that revenue from parcels was down nearly $500 million in the first half.

In the second quarter, parcels revenue fell by $288 million, or 36.7 per cent, as volumes shrank by 25 million pieces, or 36.5 per cent, compared with the same period a year ago.

For the first six months of the year, parcel revenue plummeted $482 million, or 29.6 per cent, and volumes were down 43 million pieces, or 31.1 per cent, compared with a year ago.

But parcels weren’t the only sector to suffer.

Direct marketing revenue dropped $23 million, or 7.5 per cent, in the quarter and $12 million, or one per cent, for the first half compared with last year.

“Labour uncertainty affected the line of business as customers sought to avoid the possibility of time-sensitive mailings getting trapped in the postal network,” the company said.

Regular mail was up in the second quarter, but the Crown corporation attributed that to the federal election and said mail is in “secular decline.”

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Canada Post’s Purolator division posted an $82-million profit before tax, compared with an $81-million profit a year ago.

• Email: gmvsuhanic@postmedia.com