OTTAWA: The Canada Post segment lost $60 million before tax in the third quarter, when the risk of a work disruption prompted commercial customers to make other arrangements to deliver their parcels and mail.
The net financial impact of the labour uncertainty is estimated at $100 million for the third quarter. That figure reflects the significant reduction in revenue but also includes slightly lower costs, such as less use of overtime and temporary employees, because volumes had declined sharply in all lines of business. The Corporation and the Canadian Union of Postal Workers reached tentative agreements on August 30, 2016, but volumes took much longer to recover. Employee benefit expenses were also lower in the third quarter due to a $44-million non-cash one-time gain, resulting from the new collective agreement with the Canadian Postmasters and Assistants Association (CPAA) in August 2016.
The Canada Post segment’s $60-million loss before tax in the third quarter, which ended October 1, 2016, compared to a loss before tax of $13 million in the third quarter of 2015. For the first three quarters, the Canada Post segment recorded a loss before tax of $15 million, compared to a loss before tax of $20 million in the same period in 2015. The improved results over three quarters are largely due to growth in the Parcels business over the first two quarters of 2016.
