Canada Post tells federal inquiry it was set to run out of cash by July – National [Video]

Canada Post and representatives from its union squared off on Monday at a federal inquiry into the month-long strike that halted mail delivery across the country and the viability of the postal service’s business model.

The Industrial Inquiry Commission heard from Canada Post CEO Doug Ettinger, who emphasized the Crown corporation’s challenging financial reality and its “need for change right now” if it wants to remain solvent.

Meanwhile, chief financial officer Rindala El-Hage outlined how the corporation’s losses are expected to increase and that Canada Post was set to run out of cash by the end of July – a projection that didn’t include the effects of the national postal strike.

El-Hage was pressed by the commission for details on how Canada Post had been planning to deal with the looming cash crunch.

On Friday, the federal government announced it will provide a $1-billion repayable loan to Canada Post to help it continue operating.

While the funding buys the corporation some time, …