OGGO meeting 22 · 2025-12-11 — Committee Evidence — LegisWatch

Summary

The House of Commons Standing Committee on Government Operations and Estimates studied the transformation and financial sustainability of Canada Post Corporation. Appearing were Doug Ettinger, President and Chief Executive Officer, and Rindala El-Hage, Chief Financial Officer.

Doug Ettinger stated that Canada Post and the Canadian Union of Postal Workers have signed agreements in principle, with details withheld until finalized. He outlined a transformation plan submitted to the minister on November 7, focusing on converting more households to community mailboxes for cost savings, modernizing the post office network while protecting rural, remote and Indigenous communities, and updating letter mail service standards to allow more ground transportation. He emphasized the plan aims for financial self-sustainability by 2030, with workforce reductions primarily through attrition given an aging workforce, and revenue growth through e-commerce parcels and new pricing strategies. He disagreed with suggestions of privatization, stating the plan has no such intention.

Rindala El-Hage confirmed that the $1-billion loan from the government has been exhausted, and discussions are ongoing for additional funding to maintain operations until the transformation plan is approved. She noted that Canada Post has $595 million in credit facilities available in the interim, and the existing loan is repayable with a deadline of December 2026 for revisiting terms. She stated there are no covenants in the loan agreement restricting executive compensation.

Ettinger responded to concerns about rural post office closures by stating the approach will be highly localized, with a first phase focusing on urban areas with duplication, and that rural, remote and northern services will be protected. He committed to promoting the accommodation delivery program for seniors and those with functional limitations, and to communicating changes in multiple languages. He noted that the five-year delay in strategic plan approval hindered modernization but that the current plan provides the necessary tools.

The committee briefly discussed a privilege motion from a previous meeting, with a member reserving the right to bring the matter back.

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Witnesses · 2

Doug Ettinger

President and Chief Executive Officer, Canada Post Corporation

Opening remarks

Thank you, Mr. Chair, and good afternoon to the committee members as well. Thank you for having us. I'm joined today by my colleagues Alexandre Brisson, our chief operating officer, and Rindala El-Hage, our chief financial officer. We're very pleased to be here. We value this important conversation and discussion. I'll start with an update on our negotiations. As we announced last month, Canada Post and the Canadian Union of Postal Workers have signed agreements in principle. We are now working hard with the union to finalize the wording of these agreements. Both parties have agreed not to disclose details of what they contain until they're finalized. These agreements come after more than two challenging years at the bargaining table. I know how difficult this period has been on those who rely on Canada Post. Our customers both need and deserve reliable service from us. I look forward to rebuilding our business and restoring their trust as soon as possible. That brings us to why we are here today. Last month we submitted our proposed transformation plan to Minister Lightbound. It is in line with his direction, which was based on the recommendations from the industrial inquiry…

Full testimony ↗

Rindala El-Hage

Chief Financial Officer, Canada Post Corporation

Opening remarks

Thank you, Doug. Thank you for the question. It is important. You're absolutely correct that we ran out of the cash injection this month. We've exhausted that. That was very important in enabling us to maintain operations. The discussions we're having with the minister's office at this point in time are not yet finalized. We're working through the details to ensure that we have sufficient funding to maintain operations and service to Canadians until the transformation plan is approved and endorsed in due course, which will alleviate, obviously, additional funding around investing in the future of Canada Post.