The Canada Post Group of Companies says losses deepened in the second quarter as the mail carrier faced eroding results across most of its operations.

The company reported a loss of $10 million, or $4 million after taxes, which marks an improvement from a loss $18 million, or $17 million after taxes, a year earlier.

But the Crown corporation says the latest quarter is skewed by a lockout last summer which pulled down results in the comparable period last year, making the decline the latest quarter seem less severe.

Cost of operations rose 6.1 per cent, or $85 million, to $1.47 billion in the quarter ended June 30.

Canada Post noted that 71 per cent of its overall costs are tied to labour, which is why it believes it's important it must reach a collective agreement with the union representing its employees.