UMVA has learned that Canada Post paid executive bonuses in 2025, a year in which the organization lost a staggering $1.57 billion, marking a record deficit.
Despite the massive loss, Canada Post CEO Doug Ettinger testified before a government operations committee that the company has made significant cost-cutting efforts, including reducing management and executive costs by over 10% and slashing $200 million from discretionary spending over the past two years.
However, when questioned by Conservative MP Andrew Lawton, Ettinger revealed that Canada Post still maintains two bonus programs, including an "at-risk pay" program that was paid out last year, although the exact amount is unclear, with Ettinger agreeing to provide the committee with the total numbers.
Lawton pressed Ettinger for transparency on executive bonuses, emphasizing that the committee is not interested in the bonuses paid to unionized workers, but rather the amounts received by Ettinger and his colleagues, given the massive deficit posted by Canada Post in 2025.
According to information obtained by UMVA, Canada Post is bracing for further financial struggles, with management warning of more stamp rate hikes in 2026, following a 35% increase in the price of mailing a domestic letter over the past 18 months, from 92¢ to $1.24.
The organization's Third Quarter Financial Report reveals that Canada Post is on track to post its eighth consecutive year of losses, with the 2025 losses expected to be the most significant in the company's history, and the post office admitting it would be insolvent without a $1.034 billion line of credit approved by cabinet earlier this year.
Management attributes the losses to a long-term decline in letter mail revenue and the growth of private sector parcel couriers, highlighting the significant challenges facing Canada Post as it struggles to remain viable in a rapidly changing market.
