CEO admits Canada Post paid bonuses despite record $1.57 billion loss
https://www.westernstandard.news/news/ceo-admits-canada-post-paid-bonuses-despite-record-157-billion-loss/74375
Canada Post paid bonuses to thousands of employees last year despite posting a record $1.57 billion loss, CEO Doug Ettinger told a House of Commons committee Thursday.
Blacklock's Reporter says the disclosure came as MPs pressed postal management over executive compensation and cost-cutting efforts at the Crown corporation, which has not reported a pre-tax profit since 2017 and has repeatedly warned about its deteriorating financial position.
Appearing before the Commons government operations committee, Ettinger acknowledged the corporation paid what it calls “at-risk pay” to employees as part of its compensation structure, even as the organization recorded its largest annual loss on record.
The revelation drew criticism from Conservative MP Andrew Lawton, who questioned why bonuses were being paid while taxpayers face mounting concerns over the Crown corporation’s finances.
“Are you still paying executive bonuses?” Lawton asked.
Ettinger replied that Canada Post maintains two incentive programs but noted one corporate team incentive program has not paid out since 2011.
However, he confirmed another compensation program did result in bonus payments last year.
“In the broader compensation program, to keep that talent, we paid a bonus last year — sorry, at-risk pay,” said Ettinger. “It was part of their compensation.”
Lawton repeatedly pressed the CEO to disclose how much was paid out, particularly to executives.
“How much?” he asked. “I am trying to get to the number here, sir.”
Ettinger said he did not have the figure available but promised to provide it to the committee at a later date.
According to the CEO, approximately 7,000 employees participate in the at-risk pay program, including managers, front-line supervisors and members of two unions whose collective agreements include the benefit.
He said nearly two-thirds of those covered by the program are unionized employees.
Ettinger defended the payments as necessary to retain staff during what he described as a major transformation of the postal service.
“One of the things I lose sleep about is keeping the good people who are with us,” he told MPs, adding that Canada Post faces competition for skilled employees.
The testimony comes months after Public Works Minister Joel Lightbound publicly called on Canada Post management to reduce costs and improve efficiency amid growing financial losses.
“I expect management to do its job and come back with a serious plan to cut the fat in terms of management,” Lightbound said last October. “Cut back and ensure Canada Post is managed efficiently.”
Ettinger told MPs the corporation has already reduced management and executive positions by more than 10% and cut approximately $200 million in discretionary spending over the past two years, including travel and other operational expenses.
Lawton said the committee is seeking details on how much executives received in bonuses while the Crown corporation continued to post billion-dollar losses.
“What we’re really after here is whether executives at Canada Post are making out like executives at Canada Mortgage and Housing Corporation, which paid out $30.7 million in bonuses in 2024, or VIA Rail, which paid out $11 million in bonuses,” said Lawton.
“We want to know how much you and your colleagues are getting while posting a billion-dollar deficit.”
Ettinger responded that the corporation would provide the committee with the requested compensation figures.