Canada Post profit $438 million, workers' pay cut

The Canadian Press:

Ottawa - Canada Post Group reported a profit of $439-million for 2010 on Wednesday, boosted by a one-time tax-related gain, as it saw revenue creep higher.

The results compared with a profit of $281 million in 2009.

Boosting the earnings for 2010 was a $136-million gain related to its tax bill.

Revenue totalled $7.45 billion, up from $7.31 billion the previous year.

Canada Post workers were legislated back to work earlier this year after the Crown corporation locked them out in a labour dispute that began with rotating strikes by the union.

The company noted that it has a $3.2-billion deficit in its pension plan that must be paid down. In 2010, Canada Post made $425 million in special payments to reduce that deficit.

In addition to its core Canada Post business, the organization also has several subsidiaries including courier company Purolator, logistics firm SCI Group and Innovapost, a joint venture with CGI Group.