Nearly two in three small businesses may permanently drop Canada Post if strike resumes following vote Français
"Yo-yoing in and out of strike mandates is causing Canada's small businesses – one of Canada Post's last groups of profitable customers – to leave for good," said Dan Kelly, CFIB president. "Small business owners and other consumers need certainty. 13% of small businesses permanently dropped usage of Canada Post during the 2024 strike and every time Canada Post goes on strike, more and more businesses leave forever."
According to CFIB research, four in five businesses still use Canada Post. Nearly three-quarters (73%) of those businesses use it for sending cheques, while 61% send other letter mail. Over half (58%) like to use Canada Post for its low cost and convenience (50%), while reliability (25%) and customer service (9%) ranked much lower.
CFIB estimates the 2024 strike cost small businesses between 75 million to $100 million each day. Most businesses (71%) responded to the disruptions by encouraging customers to use digital options, nearly half (45%) turned to private couriers, while 27% delayed mail.
In its most recent annual report, Canada Post reported having only 24% of the market share in parcel delivery compared to 62% in 2019. CFIB recent data shows small businesses (73%) mostly rely on private couriers for package delivery. If Canada Post doesn't change its business model, it will continue losing critical market share making it impossible for the corporation to turn around its losses currently measured at $10 million per day.
"The current model at Canada Post is in dire need of massive reform. It's long overdue for the federal government to implement the well-studied changes that have been required for over a decade," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. "Small business owners deserve a long-term plan and a postal service they can count on."
Methodology
Final results for the Special Survey: Canada Post Service, Disruptions and Reform survey, conducted June 26-July 10, 2025, number of respondents = 2,317. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.04%, 19 times out of 20.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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National Post
28 minutes ago
- National Post
DATA Communications Management Corp. Reports Q2 2025 Financial Results
Article content Revenues were $113.8 million in the second quarter vs. $125.8 million in Q2 2024 Gross profit as a percentage of revenues of 26.8% compared to 27.3% in Q2 2024 SG&A expenses decreased to $19.9 million vs. $22.5 million in the prior year quarter Adjusted EBITDA 1 represented 14.6% of revenue vs. 13.4% in Q2 2024 Adjusted EBITDA was $16.6 million vs. $16.9 million in Q2 2024 Pipeline of new business opportunities continues to grow Quarterly dividend of $0.025 per common share declared, payable on September 24, 2025 to shareholders of record as of September 10, 2025 Article content Article content BRAMPTON, Ontario — DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) ('DCM' or the 'Company'), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, today reported second quarter 2025 financial results. Article content MANAGEMENT COMMENTARY Article content 'Despite challenging market conditions and stronger than expected revenue headwinds in the second quarter, we continued to deliver solid operating performance with essentially flat adjusted EBITDA and higher adjusted EBITDA margin compared to last year,' said Richard Kellam, President & CEO of DCM. 'Uncertainty about trade policies, including tariffs, the direction of the economy, and the ongoing labour issues at Canada Post have driven continued market headwinds. These factors have negatively impacted business confidence, resulting in client budget reductions, delayed orders, and inventory drawdowns. As such, revenues in the quarter were down 9.5% compared to last year. Given this ongoing uncertainty, the Company has decided to withdraw all financial guidance until there is greater clarity on these external challenges.' Article content 'We are well-positioned financially to manage through the current market conditions with our strong cash flow, a disciplined focus on maintaining margins, and managing overhead costs. We continue to be encouraged by our strong and growing pipeline of new business opportunities, the highest level of which we've seen in years. We expect to more fully realize these efforts as market conditions improve. Additionally, we have the flexibility to pursue M&A opportunities to strengthen our product and service offerings and create more value for our clients,' added Kellam. Article content DCM continues to be guided by four strategic priorities for 2025: Article content Maintain our focus on profitable organic growth Deliver a return on our new capital investments Continue to drive gross margin improvement through operating efficiencies Demonstrate agility and adaptability to effectively navigate an uncertain environment. 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The notice provided that the Company may, during the 12 month period commencing June 12, 2025 and ending no later than June 11, 2026, purchase, through the facilities of the TSX, up to 4,220,210 Common Shares, being approximately 10% of the 'public float' (as such term is defined in the policies of the TSX) of such Common Shares as at May 31, 2025. In June 2025, the Company repurchased and cancelled 79,400 common shares for total consideration of $0.1 million, including transaction costs. Article content On June 2, 2025, DCM entered into a fourth amended and restated credit agreement (the 'Bank Credit Facility') with a Canadian chartered bank, extending the maturity date of its senior secured revolving credit facility to May 31, 2028. The Bank Credit Facility also included an expanded leasing facility to finance future equipment purchases along with a number of reporting enhancements. Article content On July 17, 2025, a third amended and restated credit agreement with Fiera Private Debt ('FPD') was entered into to update certain definitions and incorporate qualitative changes, with no impact to the financial terms of the FPD Facilities. Article content The Company will host a conference call and webcast on Thursday, August 7, 2025 at 9:00 a.m. EST Article content Mr. Kellam and James Lorimer, CFO, will present the second quarter 2025 results followed by a live Q&A. Article content Register for the webcast prior to the start of the event: Article content Microsoft Virtual Events Powered by Teams Article content All attendees must register for the webinar prior to the call. Please complete the phone field in the form at the above link (prior to the start of the event) if you wish to dial in. Article content The Company's full results will be posted on its Investor Relations page and on SEDAR+. A video message from Mr. Kellam will also be posted on the Company's website. Article content Footnotes: 1 Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss), Adjusted net income (loss) as percentage of revenues, Net Debt to Adjusted EBITDA and Free cash flow are non-IFRS Accounting Standards measures. For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information under the heading 'Non-IFRS Accounting Standards Measures', the information set forth on Table 2 and Table 3 herein, and our most recent Management Discussion & Analysis filed on SEDAR+. Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, except share and per share amounts, unaudited) Revenues $ 113,794 $ 125,751 $ 237,469 $ 255,005 Gross profit 30,508 34,334 66,768 71,645 Gross profit, as a percentage of revenues 26.8 % 27.3 % 28.1 % 28.1 % Selling, general and administrative expenses 19,871 22,473 43,330 46,608 As a percentage of revenues 17.5 % 17.9 % 18.2 % 18.3 % Research & development expenses 1,216 1,391 2,336 2,638 As a percentage of revenues 1.1 % 1.1 % 1.0 % 1.0 % Adjusted EBITDA 16,568 16,888 35,156 35,553 As a percentage of revenues 14.6 % 13.4 % 14.8 % 13.9 % Net income for the period 3,714 4,064 8,828 5,539 Adjusted net income 3,891 4,017 9,094 8,920 As a percentage of revenues 3.4 % 3.2 % 3.8 % 3.5 % Basic earnings per share $ 0.07 $ 0.07 $ 0.16 $ 0.10 Diluted earnings per share $ 0.06 $ 0.07 $ 0.15 $ 0.10 Adjusted net income per share, basic $ 0.07 $ 0.07 $ 0.16 $ 0.16 Adjusted net income per share, diluted $ 0.07 $ 0.07 $ 0.16 $ 0.15 Weighted average number of common shares outstanding, basic 55,317,543 55,245,796 55,313,271 55,134,340 Weighted average number of common shares outstanding, diluted 57,156,673 57,835,179 57,198,419 57,746,066 Article content The following table provides reconciliations of net income to EBITDA and of net income to Adjusted EBITDA for the periods noted. Article content EBITDA and Adjusted EBITDA reconciliation Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, unaudited) Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Interest expense, net 5,120 5,366 10,268 10,919 Debt modification gain (867 ) — (867 ) — Amortization of transaction costs 131 140 271 280 Current income tax expense 1,445 16 3,516 1,358 Deferred income tax recovery (359 ) 947 (1,270 ) (216 ) Depreciation of property, plant, and equipment 1,792 1,783 3,514 3,306 Amortization of intangible assets 326 306 709 1,034 Depreciation of right-of-use-assets 5,029 4,329 9,831 8,814 EBITDA $ 16,331 $ 16,951 $ 34,800 $ 31,034 Acquisition and integration costs — 243 — 526 Restructuring expenses 58 1,101 58 2,186 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 Adjusted EBITDA $ 16,568 $ 16,888 $ 35,156 $ 35,553 Article content TABLE 3 Article content The following table provides reconciliations of net income (loss) to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. Article content Adjusted net income reconciliation Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, except share and per share amounts, unaudited) Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Restructuring expenses 58 1,101 58 2,186 Acquisition and integration costs — 243 — 526 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 Tax effect of the above adjustments (60 ) 16 (90 ) (1,138 ) Adjusted net income $ 3,891 $ 4,017 $ 9,094 $ 8,920 Article content About DATA Communications Management Corp. Article content DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and leading government agencies. Our core strength lies in delivering individualized services to our clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage, and digital asset management. From omnichannel marketing campaigns to large-scale print and digital workflows, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best. Article content Additional information relating to DATA Communications Management Corp. is available on and in the disclosure documents filed by DATA Communications Management Corp. on SEDAR+ at Article content Certain statements in this press release constitute 'forward-looking' statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as 'may,' 'would,' 'could,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'plan,' and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM's current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. Article content These forward-looking statements involve a number of risks, uncertainties, and assumptions. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements. Article content The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our most recent annual and interim Management Discussion and Analysis filed on SEDAR+, and include but are not limited to the following: industry conditions are influenced by numerous factors over which the Company has no control, including: declines in print consumption; labour disruptions at suppliers and customers, including Canada Post; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, increases in our input costs, and the effect of governmental regulations and policies in general; our ability to achieve and meet our revenue, profitability, free cash flow and debt reduction targets for 2025 and in the future; while we have received consents from our lenders for the declaration and payment of the special dividend and regular recurring dividend, including the exclusion of the special dividend from our fixed charge coverage ratios, our financial leverage may increase, and there is no guarantee that we will pay such dividends in the future; and, our ability to comply with our financial and other covenants under our credit facilities, which may preclude us from paying future dividends if our outlook and future financial liquidity changes. Article content Additional factors are discussed elsewhere in this press release and under the headings 'Liquidity and capital resources' and 'Risks and Uncertainties' in DCM's Management Discussion and Analysis and in DCM's other publicly available disclosure documents, as filed by DCM on SEDAR+. Article content Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements. Article content This press release includes certain non-IFRS Accounting Standards measures, ratios and other financial measures as supplementary information. This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards. Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM's performance. Definitions of such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in our most recent annual and interim Management Discussion and Analysis and filed on SEDAR+ at Article content Condensed interim consolidated statements of financial position (in thousands of Canadian dollars, unaudited) June 30, 2025 December 31, 2024 $ $ Assets Current assets Cash and cash equivalents 2,887 6,773 Trade receivables 100,697 103,445 Inventories 24,987 23,843 Prepaid expenses and other current assets 3,755 5,989 Income taxes receivable 1,364 3,432 $ 133,690 $ 143,482 Non-current assets Other non-current assets 2,201 9,104 Deferred income tax assets 9,071 8,224 Property, plant, and equipment 33,845 34,812 Right-of-use assets 164,159 162,510 Pension assets 3,408 3,142 Intangible assets 7,596 8,282 Goodwill 22,747 22,747 $ 376,717 $ 392,303 Liabilities Current liabilities Bank overdraft — 880 Trade payables and accrued liabilities 46,503 59,890 Current portion of credit facilities 8,714 15,175 Current portion of lease liabilities 12,263 10,525 Provisions 3,413 8,016 Deferred revenue 4,564 6,199 $ 75,457 $ 100,685 Non-current liabilities Provisions 480 1,279 Credit facilities 79,642 68,515 Lease liabilities 163,295 158,603 Deferred income tax liabilities — 60 Pension obligations 17,256 18,354 Other post-employment benefit plans 1,307 1,409 Asset retirement obligation 3,492 3,438 $ 340,929 $ 352,343 Equity Shareholders' equity Shares 284,546 284,592 Warrants — 219 Contributed surplus 3,219 3,078 Translation Reserve 192 307 Deficit (252,169 ) (248,236 ) $ 35,788 $ 39,960 $ 376,717 $ 392,303 Article content Condensed interim consolidated statements of operations (in thousands of Canadian dollars, except per share amounts, unaudited) For the three months ended June 30, 2025 For the three months ended June 30, 2024 For the six months ended June 30, 2025 For the six months ended June 30, 2024 Revenues $ 113,794 $ 125,751 $ 237,469 $ 255,005 Cost of revenues 83,286 91,417 170,701 183,360 Gross profit 30,508 34,334 66,768 71,645 Expenses Selling, commissions and expenses 9,649 10,178 20,609 21,042 General and administration expenses 10,222 12,295 22,721 25,566 Research & development expenses 1,216 1,391 2,336 2,638 Restructuring expenses 58 1,101 58 2,186 Acquisition and integration costs — 243 — 526 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 21,324 23,801 46,022 53,765 Income before finance costs and income taxes 9,184 10,533 20,746 17,880 Finance costs Interest expense on long term debt and pensions, net 1,837 2,307 3,708 4,805 Interest expense on lease liabilities 3,283 3,059 6,560 6,114 Amortization of transaction costs 131 140 271 280 Debt modification gain (867 ) — (867 ) — 4,384 5,506 9,672 11,199 Income before income taxes 4,800 5,027 11,074 6,681 Income tax expense Current 1,445 16 3,516 1,358 Deferred (359 ) 947 (1,270 ) (216 ) 1,086 963 2,246 1,142 Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Other comprehensive income: Foreign currency translation (110 ) 14 (115 ) 44 (110 ) 14 (115 ) 44 Items that will not be reclassified to net income Re-measurements of pension and other post-employment benefit obligations s 1,816 1,755 1,431 8,768 Taxes related to pension and other post-employment benefit adjustment above (461 ) (406 ) (363 ) (2,248 ) 1,355 1,349 1,068 6,520 Other comprehensive income for the period, net of tax $ 1,245 $ 1,363 $ 953 $ 6,564 Comprehensive income for the period $ 4,959 $ 5,427 $ 9,781 $ 12,103 Basic earnings per share 0.07 0.07 0.16 0.10 Diluted earnings per share 0.06 0.07 0.15 0.10 Article content Condensed interim consolidated statements of cash flows (in thousands of Canadian dollars, unaudited) For the six months ended June 30, 2025 For the six months ended June 30, 2024 $ $ Cash provided by Operating activities Net income for the period $ 8,828 $ 5,539 Items not affecting cash Depreciation of property, plant, and equipment 3,514 3,306 Amortization of intangible assets 709 1,034 Depreciation of right-of-use-assets 9,831 8,814 Share-based compensation expense 89 321 Net fair value losses on financial liabilities at fair value through profit or loss 298 1,807 Pension expense 742 943 Gain on disposal of sale and leaseback — (11 ) Loss on disposal of property, plant and equipment — 149 Provisions 58 2,186 Debt modification gain (867 ) — Amortization of transaction costs 271 280 Accretion of asset retirement obligations 54 65 Other post-employment benefit plan expense 87 298 Right-of-use assets impairment — 97 Income tax expense 2,246 1,142 Changes in non cash working capital (12,173 ) 764 Contributions made to pension plans (675 ) (604 ) Contributions made to other post-employment benefit plans (189 ) (115 ) Provisions paid (5,460 ) (6,526 ) Income taxes paid (1,448 ) (1,599 ) Total cash generated from operating activities 5,915 17,890 Investing activities Proceeds on sale and leaseback transaction 6,694 8,661 Purchase of property, plant, and equipment (2,536 ) (6,989 ) Purchase of intangible assets (23 ) — Purchase of non-current assets (143 ) (6,499 ) Proceeds on disposal of property, plant, and equipment — 431 Total cash provided by (used in) investing activities 3,992 (4,396 ) Financing activities Exercise of options — 337 Proceeds from credit facilities 53,733 30,185 Repayment of credit facilities (48,054 ) (43,726 ) Decrease in bank overdrafts (880 ) (1,564 ) Transaction costs (417 ) — Dividends paid (13,829 ) — Principal portion of lease payments (4,005 ) (3,500 ) Repurchases of shares (213 ) — Total cash (used in) financing activities (13,665 ) (18,268 ) Change in cash and cash equivalents during the period (3,758 ) (4,774 ) Cash and cash equivalents – beginning of period 6,773 17,652 Effects of foreign exchange on cash balances (128 ) 51 Cash and cash equivalents – end of period $ 2,887 $ 12,929 Article content Article content Article content Article content Article content Contacts Article content Mr. Richard Kellam President and Chief Executive Officer DATA Communications Management Corp. Tel: (905) 791-3151 Article content
Toronto Sun
2 hours ago
- Toronto Sun
Gunter: Canada Post overdue for privatization
William Kaplan, appointed after the union agreed to suspend its strike back in December, concluded in May that Canada Post is 'effectively insolvent' A Canada Post mail carrier delivers to a community mailbox in Calgary on Tuesday, March 18, 2025. Photo by Brent Calver / Postmedia No one's getting rich working at Canada Post. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Letter carriers start at just under $50,000 a year. Supervisors at mail-sorting plants can earn up to $74,000. Clerks fetch about $45,000. Anywhere else, and there might be plenty of sympathy for the Canadian Union of Postal Workers (CUPW) demands for a nearly 24% pay raise over four years. But this isn't 1955 when the mail was vital to the functioning of the nation – to the operation of government, to the profitability of businesses and the connection of family and friends. Now, Canada Post is about as vital as milkmen or elevator operators or buggy repair craftsmen. The federal government should sell it off or close it down. The charities and small businesses that claim to 'need' Canada Post to stay afloat have, for the last decade, seen a declining portion of their incomes come in by postal delivery, already. Closing down Canada Post would only hasten the ongoing conversion to digital communication and commerce. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. It seems the union, which went out on strike last fall before being pressured back to work by the federal government, and which has been threatening to resume its strike any day now, isn't really all that keen to walk off the job. In addition to a hefty raise in pay, CUPW has also asked for improved group benefits (including coverage for fertility treatments and gender-affirming care), longer paid medical leaves and, my favourite, 'improved protections against technological change.' If a robot can do a union job better and faster, CUPW wants it stopped. In its 'final offer,' the Crown corporation offered employees only about half of what they were asking, wage-wise. It also wanted the ability to add part-time workers, particularly on weekends, to deliver packages and thereby compete with Amazon and its other delivery services. This advertisement has not loaded yet, but your article continues below. Here's why I'm guessing CUPW members are not all that keen to go on strike: Only a little more than two-thirds of them voted for a walkout. Given that some characterized the corporation's final offer as 'an insult,' just about a third of them nonetheless voted to accept it in the face of their union's advice to reject it. While the majority voted to withdraw their services, a sizable chunk of post office workers don't want to strike. You have to call the 'no' voters, the realists. They can see the handwriting on the wall. They suspect that if they push their demands too hard, there is already enough momentum away from using postal services that another strike might compel the government into actions the union wouldn't like, such as privatization. This advertisement has not loaded yet, but your article continues below. Already, most of what letter carriers bring to our house are fast food coupons, real estate brochures ('We buy houses!'), and ads from university students keen to paint our deck or fence, or window trim. Industrial inquiry commissioner, William Kaplan, appointed after the union agreed to suspend its strike back in December, concluded in May that Canada Post is 'effectively insolvent.' Kaplan recommended an end to daily door-to-door residential service, the closure of some rural post offices and the installation of more community mailboxes, often called superboxes. 'Without thoughtful, measured, staged, but immediate changes, (Canada Post's) fiscal situation will continue to deteriorate,' which could lead to an end of government mail delivery. Both Britain and Germany have already privatized their postal services, with the proviso that the private-sector owners maintain USO – a Universal Service Obligation, one price for first-class letter mail from anywhere in the country to anywhere else. But the private owners are permitted to try new fees for services, new product offerings and, in some cases, new staggered delivery schedules – three time a week, for instance, rather than five or six. The same is long overdue in Canada. If CUPW walks out again, the day of privatization will move closer. World Celebrity Columnists Golf Television
CTV News
a day ago
- CTV News
Businesses seek federal support as economy slows amid Trump tariffs
As Canadian and American businesses grapple with tariff uncertainty, a national advocacy group wants the federal government to support Canadian businesses while an investment executive anticipates slow economic growth for publicly traded companies. The head of the Canadian Federation of Independent Business (CFIB) is calling on the federal government to offer monetary relief to Canadian companies affected by tariffs from the United States. 'We do think it is high time that the government start to use some of the retaliatory tariff revenue that it has collected over the last number of months,' Dan Kelly, president of the CFIB, told BNN Bloomberg in a Tuesday interview. 'There's at least a couple of billion dollars that has been collected in Ottawa on the tariffs that exist on U.S. imports into Canada, and that money should be released.' U.S. President Donald Trump recently signed an executive order increasing tariffs to 35 per cent from 25 per cent on Canadian goods not covered by the U.S.-Mexico-Canada Agreement (CUSMA). Canada previously imposed 25 per cent reciprocal tariffs on a list of products totalling $29.8 billion, according to a report from the Department of Finance. It has since then included automobiles in April. The CFIB, an advocacy group representing approximately 100,000 Canadian business owners, says nearly seven in 10 (67 per cent) small importers are paying Canada's full retaliatory tariffs on goods from the U.S. without any price adjustment from suppliers, according to a report. For exporters, 63 per cent of small firms shipping to the U.S. are covering at least some of the tariff costs, with 34 per cent sharing them with customers and 29 per cent absorbing them entirely. The median cumulative cost to-date for a typical business exporting to the U.S. is $22,500. 'There was talk, of course all of those dollars would be used to support Canadian businesses and workers through the emergency period that we're in and yet, there's been very little of that happening,' said Kelly. 'I think there are some announcements on a sectoral basis, but businesses in general are hurting hard as a result of this. Nearly three quarters of small firms that said that they've had some effect. So, putting that money back into the economy through some kind of either tax cut or direct tariff related rebate would be super helpful.' Mid-cycle economic slowdown expected Unpredictability from tariffs and Canada's countermeasures is a concern, however Clay Khan, managing director of Neuberger Berman< anticipates businesses will grow slightly. He foresees share prices for publicly listed companies will rise on both sides of the border. 'Our view is that we're heading into a mid cycle slowdown, which is an environment that companies can continue to perform well,' Khan told BNN Bloomberg in a Tuesday interview. 'Just to put some numbers around that, the first half of this year in the U.S., GDP numbers on a real basis were about 1.1 per cent. Earnings estimates for Q2 most companies reported... the consensus was about five per cent and earnings estimates beat at nine per cent. The growth has been there, and our view is that in the second half of this year, you'll see the economy perform at this sort of similar range, one to one and a quarter per cent growth, and then companies can deliver.' The U.S. unemployment rate ticked up to 4.2 per cent as U.S. employers added just 73,000 jobs last month, according to the Associated Press. The U.S. Labor Department reports shaving off 258,000 jobs from May and June payrolls. Financial markets dropped to open the month before rebounding fuelling speculation of a rate cut from the U.S. Federal Reserve. 'Odds of a Fed cut going up in September went from 40 to 80 per cent in one day,' said Khan. 'Our view, and our fixed income team's view is that you'll see a cut in September and a cut in December. You'll see that sort of stimulus as it relates to monetary policy where you'll see easing and more dovishness from large central banks. The White House says the one Big Beautiful Bill will boost economic growth with measures including full expensing for new American factories, factory improvements, equipment, and research and development, no taxes on overtimes or tips and boost take-home pay for a typical family by over US$10,000 a year. 'The big one is fiscal and on the fiscal side, in the U.S., you saw the passing of the triple B bill,' said Khan. 'There're some nice features in there for companies to boost cap backs, the full depreciation of investment spent today in that tax year is pretty powerful for companies.' The bill also reinstates the use of an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) approach in calculating the interest expense limitation, according to a report from Doane Grant Thornton. Khan said a lot of lot of investors emphasize U.S. stock markets in their portfolios, saying they make up about two thirds of the All Country World Index. He did however say most investor portfolios dramatically under weigh markets in Canada, Europe, Japan and the U.K. and sees opportunities for growth for investors there with monetary policies from governments embroiled in trade wars. Non-CUSMA complaint businesses hit by 35 per cent tariffs The recent hike of tariffs on Canada will only impact some businesses as 95 per cent of goods sent over the border are covered under the CUSMA trade agreement, according to the Bank of Canada's monetary policy report. Kelly acknowledged the deal but said some businesses in his organization are not covered. 'It's good news, of course, for all of us that the CUSMA exemption looks like it's intact, that's the most critical piece of this trade negotiation is trying to create to keep that zero-tariff advantage on a huge swath of Canadian goods. But I've got to tell you that there's a heck of a lot of commerce that is non-CUSMA compliant,' said Kelly. 'I know some of the numbers that have been suggested are 90 to 95 per cent. I think that's the potential for goods to be CUSMA compliant, but that's not the case at this moment for businesses, particularly my members, small business owners. Only about half of small business exports, and about 16 per cent of our members, do exports to the United States, but only about half of them do that through a CUSMA exemption. The other half are right now potentially paying the 35 per cent tariff, and that's really, really harmful.'
