Canada Post selling off logistics business as part of effort to 'transform' Crown corp
https:// www.cbc.ca /news/politics/canada-post-selling-logistics-business-1.7079094 Canada Post selling off logistics business as part of effort to 'transform' Crown corp
Canada Post Inc. is selling off its third-party logistics business to a Montreal company, according to a media release Tuesday from the Crown corporation.
Canada Post recorded a $290 million loss in the third quarter of 2023, while its cost of operations rose by $26 million.
Services don't lose money, services are performed and they cost what they cost.
37Yeah that’s insane. Canada Post isn’t supposed to make money.
20Wtf, CBC.... You're both crown corps....
"CBC recorded a $xxx million loss" would be an equally stupid thing to say... These are gov't services to citizens
7This mirrors the enshittification of the USPS almost exactly.
It's getting hard to keep track of the current letters in-flight to our local representatives and just what half-assed response they've given if any.
4
If a company agrees to buy the business, then it means it has value for them. If that's the case, why can Canada Post not derive value from SCI, but Metro can? Also, what will they do with the money they earned - will they reinvest it in growing services that are highly in demand?
25They're gonna spend the money on a 3rd party logistics company that doesn't provide as good a service and ends up costing them 10x what they sold this for in yearly fees, delays, excess fuel usage etc. over a decade
10The private company doesn’t have to worry about fair pay or safety
4
And the privatization of Canada continues.
7This is the best summary I could come up with:
Canada Post Inc. is selling off its third-party logistics business to a Montreal company, according to a media release Tuesday from the Crown corporation.
According to Canada Post's most recent annual report, SCI represents less than three per cent of the Crown corporation's total revenue.
Canada Post would not provide CBC News with an interview and instead answered questions via email.
"It's a great company but no longer fit[s] the corporation's long-term strategy and growth plans," Liu wrote.
SCI Group manages more than $1 billion worth of inventory per day at 75 warehouses across the country and employs 3,000 workers, 353 of them members of the Unifor union.
The deal is expected to close in the first quarter of 2024, after which Canada Post will disclose details of the sale in its financial statements, Liu said.
The original article contains 359 words, the summary contains 132 words. Saved 63%. I'm a bot and I'm open source!
2