{"id":14348,"date":"2025-01-27T21:53:08","date_gmt":"2025-01-27T21:53:08","guid":{"rendered":"http:\/\/torontotribune.ca\/index.php\/2025\/01\/27\/canada-post-tells-federal-inquiry-it-was-set-to-run-out-of-cash-by-july-national\/"},"modified":"2025-01-27T21:53:08","modified_gmt":"2025-01-27T21:53:08","slug":"canada-post-tells-federal-inquiry-it-was-set-to-run-out-of-cash-by-july-national","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/01\/27\/canada-post-tells-federal-inquiry-it-was-set-to-run-out-of-cash-by-july-national\/","title":{"rendered":"Canada Post tells federal inquiry it was set to run out of cash by July – National"},"content":{"rendered":"


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Canada Post and representatives from its union squared off on Monday at a federal inquiry into the month-long strike that halted mail delivery across the country and the viability of the postal service\u2019s business model.<\/p>\n

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The Industrial Inquiry Commission heard from Canada Post<\/a> CEO Doug Ettinger, who emphasized the Crown corporation\u2019s challenging financial reality and its \u201cneed for change right now\u201d if it wants to remain solvent.<\/p>\n

Meanwhile, chief financial officer Rindala El-Hage outlined how the corporation\u2019s losses are expected to increase and that Canada Post was set to run out of cash by the end of July \u2013 a projection that didn\u2019t include the effects of the national postal strike.<\/p>\n

El-Hage was pressed by the commission for details on how Canada Post had been planning to deal with the looming cash crunch.<\/p>\n

On Friday, the federal government announced it will provide a $1-billion repayable loan<\/a> to Canada Post to help it continue operating.<\/p>\n

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While the funding buys the corporation some time, Ettinger said it\u2019s \u201cnot a long-term fix.\u201d<\/p>\n

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However, Jan Simpson, the president of the Canadian Union of Postal Workers, said the corporation is misrepresenting its financial picture.<\/p>\n

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\u201cIn this round of bargaining alone, Canada Post\u2019s answers to our financial questions raise serious concerns about the transparency of its financial reporting,\u201d she said.<\/p>\n

\u201cThe union has also valid concerns that Canada Post, in reporting its financial losses, has failed to acknowledge some of the key contributing factors including mismanagement.\u201d<\/p>\n