Is digitization behind Canada Post's $748M loss in 2023? | EXPLAINED

Associate professor Ian Lee explains why parcels may be Canada Post's last hope of surviving in the digital age.
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[@jokertony420]

how many executives got bonuses? start there...

[@junyoo7809]

💯

[@xLeafs2012x]

They could get rid of 80% of the useless executives and i bet the company would run much better

[@steflynn7772]

The average Canada Post Corporation executive compensation is $238,026 a year.The median estimated compensation for executives at Canada Post Corporation including base salary and bonus is $236,908, or $113 per hour. At Canada Post Corporation, the most compensated executive makes $700,000, annually, and the lowest compensated makes $50,000.

[@sunhokim303]

And rich union leaders they do not care employees

[@maggielo1133]

@@steflynn7772 how can $50000 be able to put food on the table even just for themselves?

[@martinwoodworking]

Since 2018 there has been over $ 2 billion spent on new facilities and vehicles. You don’t do that while “losing” money

[@cbarfoot8456]

You do if your government employees.... No concept of finances.

[@wheelie._.b]

Canada post can’t stay open but we send 4 billion to the Ukraine. Let’s get some new management for Canada post and the country. This is a joke.

[@craigbridge6538]

They will get a bail out then three months later upper management will give themselves a raise. Just like bombardier

[@jptrainor]

Perhaps it's due to mind numbing inefficiency. Considering the whooping parcel post fees they charge.

[@violetgypsie]

How can Canada Post be loosing money? Their rates are outrageous and they are busier than ever with all the oneline shopping.

[@lambertois11]

Wrong ! Most online stores either have their own delivery services or they are using private couriers !

[@HowieDue416]

The answer is free shipping from Temu and the like. There is an international treaty that says that letters sent from 2nd and 3rd world countries will be carried the last leg within 1st world countries for free by the post offices. This treaty needs to be revisited on which countries should and which countries shouldn't be beneficiaries of these treaties.

[@violetgypsie]

@@lambertois11 I know someone who works at a post office and they are swamped with packages every single working day.

[@PaulNero-hn6jn]

I had a small business, before I retired, Canada post was the cheapest compared to purlator and fedex

[@tomreed-oe7hi]

@@PaulNero-hn6jn it still is

[@user-uy3zi4ty1m]

it is funny they loose money but the executives keep getting their big pay bonuses

[@barrywalsh4317]

Canada post can save a lot of money but they are more interested in spending it. For every 5 or 6 supervisors, there is a superintendent. For every 5 or six of them there is a director. They have 23 vise presidents. They just went out and bought a fleet of trucks that were not needed ($160,000.00) a piece. Add it all up and tell me where money is going.

[@ShaSasbath]

This guy doesn't know what he is talking about. I've worked for Canada post for over 30 years. It has three revenue streams... Non-addressed ad mail, parcels and addressed mail. All letter carrier routes are evaluated between 35 to 23% coverage. Which means carriers are only given time value for 1/3 of their route. Non-addressed ad mail is as profitable as ever. Canada post needs to aggressively go after the parcel market. It is the future. Canada post could start offering banking services at all its rural post offices. It could become a one stop delivery supply outlet. It would be a tragic mistake for CPC to symply give up on its massive nation wide infrastructure.

[@martinwoodworking]

They do not go to every address daily, but they do go to every address the other companies won’t go to.

[@maggielo1133]

There are lots of address other company won’t and don’t want to go but Canada post

[@normallynorma7621]

Maybe if they acted professional they wouldn't be such losers!

[@tanweerahmed6861]

looser or tax payers money looters ?

[@durpitydoo5853]

@@tanweerahmed6861they dont use tax payers money

[@heartborne123]

if you ever sent a parcel via canada post, you wouldn't be sorry for Canada post, the prices are insane

[@maggielo1133]

You try other company like ups

[@FamilyMan88]

Last year they replaced all the community boxes with new models and they replaced all their rural trucks with brand new ones so that’s a huge reason why it’s so high.

[@marilynhaley7033]

Yes they did I retired in Dec 2023 of 30 yrs. they got new one end of Jan.2024 in my area we drove 1995's barely any heat no ac it was hot and cold ,they were stuck in garage more then they were on road, my customers miss me, mail delivered and every parcel delivered to door, all in a timely manner and I knew who wanted flyers and who didn't, with 764 points of call, somedays I miss working there. But enjoying retirement at the time.

[@jerrimyseavers2887]

Nothing to do with millions in bonuses to upper management.

[@grantevans8854]

Canada Post have never been proactive, they always react after there are problems. They spent over 1Billion Canada wide on MLOCR optical lettermail reading machines about 10 years ago, on an already declining market.

[@maggielo1133]

But this is cp must do no matter how much it declined

[@Pepe46873]

No it’s getting packages 3 cities over in 5 days while charging a premium

[@punjabigrandma]

Institute a law that bans any crown corporation from handing out any bonuses. Your salary is your salary, and if you don’t like it then move into the private sector. Police, firefighters, nurses, teachers, bus drivers are all examples of govt employees without any chance of bonus in their compensation package.

[@waterbottle4782]

Does not surprise me. I do still send letters but it costs 1.07$ just to mail a standard size letter less than 30 grams now.

[@bobross6593]

and you consider 1.07 expensive to send a letter from Nova Scotia to BC? wow

[@maggielo1133]

And on top don’t forget cp needs to return the letter if you have the address wrong 😭

[@greggreg2263]

Canada Post treats, their employees really bad😢 I wish it would be privatized and streamlined and functional and profit!!!!!!

[@PaulNero-hn6jn]

It will be a disaster, look up Royal mail (England ) they privatize the post and it s a mess..

[@AdamDavid]

Privatization would make it much worse. Look at the history of Privatization across Canada. Ontario Hydro for example, the cost of electricity is double what it would be if the government didn't sell it off.

[@maggielo1133]

@@AdamDavid only the top guys is having a living making the company fail. It is a shame to tell the public the post lost so much and keep on giving out bonuses and the workers are having trouble putting food on the table for family . The benefits is poor . Nothing is cover except pain killers and the basic antibiotic. 😢

[@flpcrmn8293]

How do you know how canada post treat their employees?

[@greggreg2263]

@@flpcrmn8293 I know how they treat their employees because I have a large group of friends that work for Canada post and are always complaining😢

[@beasymando4225]

It’s funny how yall knew since 2006 and didn’t try to build to create more income/ diversification.

[@k24-z9e]

Government = inefficiency

[@garywagner2466]

No. Canada Post suffers from the same disease as most Crown corporations. It is top heavy with highly paid but incompetent bureaucrats. Their contract staff are not very bright. It is incapable of providing an efficient service. It constantly reduces efficiency while raising prices. They charged me $140 to ship a very light package from one post office to another, when a truck had to be travelling there on a regular basis with regular mail. If you have to pay courier prices anyway, you may as well use a courier and avoid the nitwit on the counter who couldn’t even work their own computer. Just shut it down and let the market take over.

[@oldmansgoldenwords]

Bcus of strike Amazon is no more using Canada Post as excusive delivery since 2019. Main source of Income is MPs pay to Canada post to deilver physical mail. Canada post gets millions in MP appropriation. Main source to problem is corruption in IT projects like arriveScam.

[@beasymando4225]

20 years too late

[@fayknox2138]

And to think they wasted money on electric vehicles.

[@darlaj2010]

This speaker doesn't know what he is talking about. It is NOT true that postal workers go down every street to every addresses without having mail, parcels or neighbourhoods mail. The level of inaccuracies in this report is shameful. Canadian should call on Audit of Canada Posts finances - full transparency - to see where the money , reported as losses, is being spent. As about the “new” architecture, vehicles, tracking devices, AND management bonuses. Start there…. The truth will unfold from there

[@maggielo1133]

The workers are not making enough to put food on the table to feed the family if you live in B.C. : how sad

[@philc824]

Who said Canadians said Canada Post was important to them ? Japan privatized its mail service many years ago and the losses stopped.

[@ssvillage]

More expensive to use Canada Post compared to their USPS counterpart. 🤦‍♂️

[@UzumakiNaruto_]

USPS took 6.3 BILLION in losses in 2023 by the way.

[@JustinFH]

That's because USPS is treated like a public service whereas Canada Post is a Crown corporation that is expected to turn a profit.

[@4z94]

Maybe they spent too much money on carbon credits to pretend to be a pretend green.

[@thegreatdominion949]

All of the telcos and other companies that refuse to send paper bills to their customers are partially to blame for this.

[@vichysaho2135]

It’s all those pensions , lack of austerity measures, its operations need a complete overhaul, they should of been downsizing since the advent of this internet, they missed the ball 2 decades ago

[@tati4270]

I wish they mentioned how many millions invested in a clean energy.

[@Nothingcomestomind124]

Why?

[@sethferri]

Yet executives and shareholders receive their record breaking bonuses...

[@RicAr-ml8nu]

There are no shareholders genius, it's a federal crown property.

[@sethferri]

@@RicAr-ml8nu Okay genius, thanks for the information

[@TomPolon-si2no]

LOL So why does Canadapost built 6 huge buildings across Canada if the mail volume are down. That’s why they’re in trouble because canadapost executives doesn’t know how to manage their money.

[@maggielo1133]

Public need to look at why the top guys still get bonuses when they can’t manage the company

[@DrewWilson192]

Omg, selling off the IT department is like selling off their one way to stay alive and relevant. Bad decision after bad decision. They need automation and they need to turn all their thousands of rural community post offices into logistics offshoot centres.

[@tanweerahmed6861]

If they are loosing even after their insane charges , then it’s better to shut it down instead of wasting taxpayer money

[@durpitydoo5853]

It’s not funded by the government the amount of ppl who don’t know this boggles my mind

[@chrislim7976]

Let me get this straight. Canada Post doesn't know why they're losing money?

[@rickbateman2401]

Canada Post has lost money for years - the difference is that Canada Post doesn’t have any more assets to sell and then claim the proceeds as profit and Purolator can’t make enough money to cover the shortfalls without those asset sales to make things look better than they are.

[@bobross6593]

Never has Canada Post lost money...projected revenue minus actual should NOT be considered a loss

[@rickbateman2401]

@@bobross6593 projected revenue - actual is not what determines loss. It determines whether budgets were met. This is not about meeting a budget, this is about an operational loss. Canada Post has been relying on profit taking from Purolator and the sale of assets to make up for operational losses for years. Now the operational losses of Canada Post itself are too big to hide and Canada Post has run out of assets to sell.

[@maggielo1133]

Why don’t we talk about how much in total the top guys get every year for just bonuses?

[@craigbridge6538]

Poorly managed. Waiting until things are dire straights

[@misterchristian123]

Instead of a complete overhaul of their business model, their solution: increase the price of stamps. $3B in losses in six years!? CP is done. 2024 they'll probably lose $1B based on the crazy 2023 loss. Insane.

[@JSRTales]

govt workers and technology is behind private sector

[@justinleon3509]

if you are looking to make cuts, then you have to deal with the union. i dont think govt wants to deal with that

[@OswaldBeef]

The boomers used to just climb up in position and enjoy sleeping In the back waiting for a decent retirement pension. I wonder if we are going to pay for that now.

[@xeero24]

Fire them all and disband the union. Unions are evil. Truth.

[@maggielo1133]

This is nothing to do with the union

[@justinleon3509]

@@maggielo1133 no, it involves them. i worked in federal govt before. whenever you want to cut jobs, the union will resist. they will try to minimize job losses. that will then limit what efficiencies canada post can find.

[@Eyeballman24]

I wonder how often Lee goes to a post office, because everytime I do there's a line up.

[@rotatorcuffs8140]

When was the last time they went to every address? Do they still do that in some places? On my street they pickup/deliver mail in bulk for the whole block from the one mailbox.

[@BeachBoyee]

Employees stealing mail didn't help. I tracked an ExpressPost package to a certain station and then it just disappeared, never did get anything out of it after complaining.

[@davidlee8396]

With Amazon returns, I prefer to use UPS or Purolator over Canada Post. The reason being Canada Post will charge me for tape if my package needs any amount of taping. UPS does NOT charge me tape and get more Amazon returns for this reason. I am not alone in this department. This is one of the reasons why Canada Post will lose money.

[@ryanmuir6338]

Of course USPS and CPS can compete with couriers. Have you seen the brokerage fees couriers charge that the post doesn't?

[@lambertois11]

Why Canada Post has such huge loss ? The answer is simple ! Next 4 weeks, count the number of letters that you will receive with Canada Post. Also count the number of emails you will receive (excluding spam, solicitation and marketing) !

[@bobross6593]

They have never had a loss. projected revenue minus actual revenue should NEVER be considered a loss!

[@truckerwayne]

The post office needs to downsize . It needs to deliver once a week only Lay off 50 percent of staff at least. Balance their budget or close thousands of post offices.

[@lm9991]

Canada Post doesn't deliver packages - you just leave notification to go pick it up!! That has a lot to do with it.

[@creativeexpletives]

Yea no wonder, there is no mail in your mailbox but daily your mailbox is overflowing with Flyers and unaddressed advertising. Canada post needs to shut down, with $748M loses in year, that’s all tax payers money, it needs to go somewhere else better.

[@marilynhaley7033]

Flyers are consumers choice, except govt flyers

[@UzumakiNaruto_]

What are you smoking? Shutting down a national postal service that everyone uses is INSANE. Some things much like transit isn't meant to make profit, but is meant to serve the public. USPS lost 6.3 BILLION in 2023, but I don't think anyone sane is talking about closing them down.

[@TrishW-zw8wy]

Canada Post is NOT funded by taxes.

[@bobross6593]

lol your tax dollars do not fund Canada Post!

[@georgenickerson7741]

If they did 7 billion items last year just raise costs average letter .10 cents. Makes $700 million. Problem solved. Who's going to complain $1.25 to mail a letter to $1.35?

[@peterbattista1095]

So you're saying, I shouldn't invest in a fax machine company? Sure, we laugh at that, but not at this? Didn't see it coming? Really?

[@juliabouzan1739]

I send lettermail and oversized lettermail all the time for my small business because a parcel is way more expensive, it would be nice if there was something in between or if oversized lettermail was tracked, so there would be less risk of it being lost.

[@VividTheater]

Daily door to door mail consists of fliers, addressed ad mail and bills. Thats it.

[@ClaireBeatty]

Not even bills anymore.

[@user-po9hy9th7w]

... Canada sent over $3billion to the Ukraine last year ... the Russia/Ukraine war has turned into a bottomless money pit which like Afghanistan has no permanent positive outcome possible in the near or distant future and is wasting hundreds of $millions on an ideology rather than fact driven gun buy back ... I'd much rather see that money being used to ensure Canadians have a reliable postal delivery service which Canadians NEED here and now in the real world

[@Aaron-hb9xp]

Very terrible management at Canada Post. Check out how much is paid to top and senior management. The president and their 22 vice presidents, how much does that cost? Also they are soooo top heavy in floor supervision and lower level management. It’s part of the problem.

[@ohcanadaeh]

Shrink the post offce. Hire less workers and cut the losses.

[@sunhokim303]

Seniors need to receive mails not emails or text

[@Sun-Flw]

It's probably because it's insanly expensive. To send a letter size package from NL to NS is nearly 40 dollars. I would rather order online and have it sent to a persons address.

[@kurtzcol]

the fukn price they charge to deliver a package and they are still broke how

[@W1thcdoctor1987]

But I'm perplexed by Canada Post's declining market share in the parcel delivery market (29 percent in 2023 compared wit 62 percent in 2019) while coexisting with profitable privately operated companies like Amazon Logistics, DHL Express Canada, FedEx Canada and UPS Canada that offer seven-day-a-week delivery services nationally.

[@Hoovie9596]

I haven’t mailed a letter in over 15 years

[@theflowpowa42oshow]

You can write into The Flowapowa42o Show and we will read your letters on air.

[@jumbome7420]

Poor customer Service And deliveries that’s what’s behind the review drop

[@RATED4EVER]

SELF-CHECKOUT POST OFFICES. Problem Solved.

[@jmcb3411]

Extremely uncompetitive. Maybe it is time to become history.

[@grantevans8854]

Only delivery service many remote communities have. It could be done away with in the cities, but rural areas are a different story.

[@TheDak123]

Change door to door. 90% I get is junk mail. I see my mailman zigzagging across the street because each house doesn't get mail everyday. Switch to once a week per house. Cut 75% of letter carriers.

[@alysonturcin-weller7443]

How is this even possible??? That is an outrageous amount of money lost. Mismanagement? Corruption?

[@bobross6593]

It is not possible ...Canada Post does not lose money. PROJECTED revenue minus ACTUAL revenue should not be considered a loss. they also don't tell about all the investments in new plants and fleet of trucks and all the management bonuses

[@corryg6403]

Their package shipping is crazy I can ship cheaper with FedEx than Canada post

[@CHodgy]

Arent they working for Amazon for free??

[@ChrisCaledon]

I literally just went 5 houses past my house to deliver a package which I had to get from the bigger mailbox, with a key, to then read that it was not for anyone in my house. It was just a different house address. Maybe that's why Canada Post is doing so poorly. They do not care.

[@Todd.T]

Businesses charge for giving you paper documents. Reading a pile of flyers, isn't as efficient as searching e-flyers.

[@pistnbroke65]

Canada Post owns Purolator and a large portion of Intelecom...

[@user-lf5tl8jg2v]

The only thing I ever get from Canada post are flyers, all of which I can get online. They are a waste of taxpayer money!

[@marilynhaley7033]

Flyers are consumers choice, if you have rural m//box leave note inside no flyer here if your in community mail box do the same

[@martinwoodworking]

Taxpayers do not finance Canada post

[@grantevans8854]

@@martinwoodworking 🎯

[@user-lf5tl8jg2v]

As a Crown corporation, Canada Post reports to the Minister of Public Services and returns any profits to the Government of Canada, which is considered its shareholder. In turn, losses at Canada Post are borne by the taxpayer through the federal government.

[@martinwoodworking]

@@user-lf5tl8jg2v not a dime of taxpayer money has gone to Canada Post in over 40 years. In fact, since 2000, Canada Post has returned over $2 billion to the federal government. Plus, these “losses” are not real loses, they are failures to reach goals set by the corporate board. You don’t spend $4 billion over 5 years while you’re losing money.

[@bobross6593]

LOL PROJECTED revenue minus ACTUAL revenue should not be considered a loss! Project high every year and claim a loss! haha

[@theflowpowa42oshow]

Follow the money

[@erikpaul2550]

They are struggling because their pricing is outrageous. I get better rates from UPS, Purolator, Canpar, Fedex and DHL on every single shipment that isn't extremely remote. It's so bad I hesitate to accept orders to a PO Box address.

[@MrWookie1981]

Unionized dinosaur cannot keep up with the gig economy. That is all they had to say.

[@k24-z9e]

Time to privatize it. It's too big and inefficient.

[@grantevans8854]

Nobody wants it. Must deliver to every address in Canada, not just the cities. Plus have to deal with CUPW. Hard to make any profits.

[@robertmcbeth4147]

Should be a not for profit public service anyway.

[@JasonScott604]

They made it pretty much unaffordable to ship anything nowadays and there’s a lot more competition for package delivery services so they need to shape up or ship out taxpayers are tired of paying for the postal service

[@PaulNero-hn6jn]

Do your homework, taxpayers haven’t given a cent to Canada post since the 1980 Something … that’s why it’s a crown corporation, the issues are they are top heavy in pay and bonuses and they are spending more then they make …. Don’t believe me look it up 470 million dollars on a nee plant near Toronto something Jackson and over one billion dollars to go “ green” and 4 billions to improve other things …, like they say if you spend it you don’t have to claim it !

[@jeffb6652]

Find a parcel company thats cheaper to send a personal parcel.....

[@JasonScott604]

@@jeffb6652 there’s several in my city but thanks for your input

[@LiftingDonuts]

When you don't compete and innovate.. Bye Bye Canada post.

[@cs3818919]

Amazon is eating Canada Posts lunch. Free shipping and fast. Stuff even comes on weekends. And they leave it at the door. Canada post just leaves a slip and i have to go out and get it.

[@jasonmayes2145]

Maybe they don’t want your package stolen!

[@jasonmayes2145]

We should work the weekends too, for your package, eh Prince?

[@EuroNation]

Obviously it is.

[@TheGfr666]

wonder how much they paid Ian to spout off a bunch of crap?

[@richardrobinson5633]

Why would I pay a dollar to mail a letter when I can send and email for free. Makes no sense

[@bmoshareholderappleshareho855]

Well, you are paying for the internet service. But, I see your point.

[@dianatrac81]

CP is way too expensive. They need to drop their rates.

[@jeepstuff4004]

They are useless. Takes then 5 days to deliver a letter sent to the same city

[@BillSmith1]

I do send letters for friends, but I get and pay my monthly bills online.

[@bmoshareholderappleshareho855]

You can always send them emails and texts. You can talk to them on the zoom platform.

[@DrToetag]

Fire them all and do everything on line and utilize couriers more...Canada Post is charging to much and working to little...

[@marilynhaley7033]

No that's not true I busted my butt off keeping my customers happy they miss me and I miss them, but adapted to retirement now

[@grantevans8854]

Couriers don’t deliver to many small towns & remote communities.

[@merc340sr]

Time to privatize.

[@JessT-vg7ib]

We need to privatise it. Private=better

[@jongibbons730]

I can almost guarantee that if I send a parcel with Canada Post, it more than likely won't get there.

[@richardkeller4892]

Maybe the 34 Billion dollar cost of salaries for corporate.

[@user-dp3kr9fs4d]

The only mail we receive are flyers. How much are the postal workers getting paid to deliver flyers?!? Ridiculous

[@JerryLawler-pe8wv]

Put a no flyers sign up, if it bothers you that much 😂. Btw those flyers pay 30% of there wages

[@musiplaylist6568]

HAHA 😂

[@RicAr-ml8nu]

Privatise and or outsource.

[@drand9585]

They deliver 5 days per week in my rural area.....but the mail only comes from the city sorting centre THREE days per week! Wasteful!

[@cbarfoot8456]

I am ok to NEVER get physical mail ever again....