OTTAWA—Canada Post Corporation (CPC) has reported a loss of $10 million in its second quarter, as transaction mail continues to slide.

"Canada Post's core transaction mail volumes have been steadily declining since 2007. Given the pace of electronic substitution, volumes are not expected to rebound," noted the Crown corporation.

Canada Post noted transaction mail volume fell by 4.4% or 31 million pieces in the second quarter, and by 4.5% or 88 million pieces in the first two quarters, compared to the same periods last year.

Direct Marketing mail volumes were "flat on a year-to-date basis when compared to the first two quarters of 2011, but compared to the same period in 2010, volumes declined by more than 140 million pieces or 5.5%. Direct Marketing results remained below expectations as corporate customers reduced their marketing spend and shifted to electronic media."

CPC claims its labour costs amount to 71% of its spending. Meanwhile, the corporation and the Canadian Union of Postal Workers (CUPW) are trying to reach collective agreements. CPC said it tabled a new offer on July 19, "which aims to reduce costs and positions the company for a very different future."

CUPW said it met with Canada Post (CPC) on June 26 to hear the corporation’s response to the union’s May 7 global offer, which was rejected.