In 2011, the core Canada Post segment had its first financial loss after 16 consecutive years of profitability. The loss before tax was $327 million.

Four significant factors contributed to this result: the June 2011 labour disruption; a continued decline of mail volumes; the sizable, volatile pension obligation; and the Supreme Court of Canada’s decision regarding pay equity.

Deep and enduring shifts in technology and demand for postal services point to the urgent need to transform the business. Structural transformation will involve efforts to achieve operational excellence through modernization, as well as increased customer focus, technological transformation and a plan to leverage the Group of Companies. It is essential that this transformation also address labour costs through the collective bargaining process in order for Canada Post to remain competitive, to be able to continue to offer affordable services, and to restore and sustain profitability.

The growth agenda focuses on enhancing Canada Post’s leadership in home delivery to capitalize on the rapid growth of e-commerce, expanding digital delivery via epost^TM, building data and location intelligence as a growth business and maximizing the value of traditional and marketing mail.