this post was submitted on 23 Jun 2025
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Tax revenue is a fixed size pool of money. Canada Post may not need to make a profit, but it does need to break even. There are many other things that money needs to be spent on.
Public services are allowed to operate in the red because the money to operate them, provided by tax revenue, is fixed by the budget and does not need to be paid back. We pay for the service through taxation and if the service requires more money to operate efficiently we should be either increasing taxes to cover the cost or trimming management positions.
I have no problem with Canada Post operating at a loss, but not while that effectively means taxpayer dollars subsidizing the private businesses dominating all easy, high-volume routes using underpaid gig labor. CP are getting penalized at both ends, as are we. The only other way I can think to frame it is urban taxpayers subsidizing rural and especially remote communities, which I'm sure will be very popular while public transit remains wholly inadequate.
I don't know how to solve any of that internally, nor just within shipping. It's most likely far from feasible to mandate every shipping company ^and-who-counts-as-such?^ deliver to every corner of Canada, or even of just certain regions. But putting an end to gig work by closing the contracting loopholes would be a good start. And start forcing all employers with more than 10 employees -- including contracted sole proprietorships -- to maintain a supermajority of labor hours being supplied through salaried full-time positions. Even that disrupts actual independent professionals, but at least it would still be a level playing field.
Anyway, it seems to me like most of the real problems and their origins are external to Canada Post itself
so it makes sense that there may not be any kind of internal solution.
The simple solution I see is making Canada post a tax funded public service again, and restructuring it as such.
Parcel delivery is a service that can be run for a profit (by real couriers like UPS, FEDEX, etc, not those bullishit Amazon couriers). There are other services the government provides that cannot (and should not) be operated for profit (ie healthcare). I would much rather my tax dollars go towards that, rather than operating Canada Post at a loss.
Healthcare is a service that can be run for profit.
Education is a service that can be run for profit.
Infrastructure building can be run for profit.
Home building can be run for profit.
Doesn't mean any of it should.
I would rather my tax dollars go to the services we need which includes postal. You may live in an area that easily has other alternatives, but this is Canada and most of our country is rural.
I already said this.
I added to the conversation. Care to do the same?
Does the army need to break even? OHIP? School Boards? Fire Departments? Services are just that, services, not a source of revenue.
We can increase taxes. It's an option.