OTTAWA — An inquiry into Canada Post kicked off hearings Monday, looking into a month-long strike that ended in government intervention and the viability of the postal service’s business model.

Canada Post CEO Doug Ettinger emphasized to the Industrial Inquiry Commission the Crown corporation’s challenging financial reality and its urgent need for change if it wants to remain solvent.

Meanwhile, chief financial officer Rindala El-Hage outlined how the corporation’s losses are expected to increase and that Canada Post was set to run out of cash by the end of July – a projection that didn’t include the countrywide postal strike.

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

While the funding buys the corporation some time, Ettinger said it’s not a long-term solution.

More than 55,000 workers went on strike Nov. 15 after negotiations broke down between Canada Post and the Canadian Union of Postal Workers.

In December, federal Labour Minister Steven MacKinnon directed the Canada Industrial Relations Board to order the employees back to work if it determined a deal wouldn’t be possible before the end of the year.

He also appointed an industrial inquiry commission to look at the structural and business issues facing Canada Post, and to make recommendations on how a new deal could be reached with the union.

One of the biggest issues in the dispute between Canada Post and the union was a push by Canada Post to expand delivery to the weekend as a way to compete with other carriers and boost revenues for the struggling corporation.

The two sides disagreed over how to staff the expansion, with the union accusing Canada Post of trying to undermine full-time work.

This report by The Canadian Press was first published Jan. 27, 2025.

The Canadian Press