Canada Post is crediting its five-point action plan for a remarkable turnaround that has driven that segment of the Crown corporation from losses of $125 million in 2013 to a pre-tax profit of $194 million in 2014.
The postal service revealed in its March 27 financial statement that revenue for the Canada Post Group of Companies — which includes Purolator, SCI Group and Innovapost — reached $7.98 billion in the last fiscal year. That’s an increase of 5.5% compared with the $7.56 billion generated in 2013.
Profit from the group of companies reached $299 million in 2014 compared with losses of $193 million in 2013.
According to the financial statement, the jump in both profit and revenue was “mainly due to growth in parcels revenue and an increase in lettermail revenue.”
CEO Deepak Chopra said in a statement the five-point action plan he introduced to Canada Post in December 2013 is starting to show results.
The action plan involves cutting door-to-door delivery service, adjustments to letter delivery prices, additional franchise outlets, faster sorting equipment and reductions in labour costs.
The plan to shift door-to-door delivery service to community mailboxes attracted criticism from groups concerned about seniors’ ability to fetch the mail.
The Canadian Union of Postal Workers (CUPW) said the profit shows cuts to door-to-door delivery should not have been stopped.
CUPW president Denis Lemelin said he wrote to Chopra, Prime Minister Stephen Harper and Transport Minister Lisa Raitt, requesting the service be reinstated.
“Postal workers are justifiably proud to perform a valuable, profitable public service,” Lemelin said in a statment.
“Now if only Canada Post's executives could see how clearly it shows that there's no need to cut door-to-door delivery for millions of families."
