Ottawa wants to see ‘immediate steps’ from Canada Post to address financesOttawa is recommending major changes for Canada Post in a bid to ‘stabilize’ the organization’s financial situation, including changes around letter mail frequency, residential delivery and rural post offices, says Transformation, Public Works and Procurement Minister Joël Lightbound.The LatestThe federal government is letting Canada Post change the way it delivers mail in an effort to save the carrier, which is effectively going bankrupt.The corporation will no longer be required to make door-to-door home deliveries, shifting those addresses to community mailboxes over several years.Canada Post can also close some rural mailboxes.The minister of government transformation said the corporation is in an “existential crisis” and can’t keep depending on bailouts to survive.Canada Post lost $1 billion in 2024 alone and is on track to lose more this year.The postal workers’ union says Ottawa did not tell them about the change in advance.UpdatesSeptember 2511 minutes agoCatharine TunneyNDP MP Alexandre Boulerice, the party’s labour critic, has also weighed in. He said the Carney government “wants to realize the dream of Stephen Harper with community boxes everywhere and cuts for our rural populations.” “And in the cities it’s going to be a mess,” he said on his way into question period, suggesting there is nowhere to put more community boxes.15 minutes agoBloc Québécois slams Canada Post announcementMichael WoodsChristine Normandin, the party’s house leader, accused the government of “slipshod” and “hastily improvised” reforms that overlook thousands of Quebecers.Speaking during question period in the House of Commons, she also criticized the end to the moratorium on closing rural post offices. She said the government should not cut back on service in rural areas and called on them to ensure Quebecers in those areas aren’t abandoned.Minister Lightbound responded saying the government is committed to ensuring all Canadians in remote areas have access to Canada Post.30 minutes agoBusinesses are glad to hear today’s news, representative saysNisha PatelCUPW Toronto Local president Mark Lubinski, seen here on an earlier picket line, says he’s angry and disillusioned by Ottawa’s announcement. (Paul Smith/CBC)The small business community, on the other hand, said today’s announcement is a positive step toward making necessary changes, but they remain concerned about the lack of a deal between Canada Post and its union.“The union’s most recent job action banning flyers was another blow to small businesses. At this critical time of year, the last thing small businesses can afford is another strike,” said Dan Kelly, president at the Canadian Federation of Independent Business (CFIB).The federation urged Ottawa to temporarily make Canada Post an essential service to prevent another labour disruption.41 minutes agoChanges will affect seniors, vulnerable Canadians as wellNisha PatelThere’s also concern some Canadians might feel changes more deeply. Laura Tamblyn Watts, CEO of CanAge, a seniors’ advocacy organization, said vulnerable Canadians mustn’t be left behind. She was particularly concerned about particular seniors, people with disabilities and people who don’t have bank accounts. She said governments at the provincial and federal level need to take extra steps to be sure “critical funds” like Employment Insurance, Old Age Security, and Canada Pension Plan payments are still delivered as quickly as possible.”We understand that while times do change, not everyone changes with them as quickly,” Watts said.48 minutes agoUnion local calls announcement ‘a bombshell’Sophia HarrisA Canada Post employee drives a mail truck at a delivery depot in Vancouver on Dec. 17, 2024. (Darryl Dyck/The Canadian Press)I’m another reporter on the business desk. I just spoke with Mark Lubinski, president of the Toronto Local Canadian Union of Postal Workers. “It’s a bombshell,” he said, adding he felt “anger, dissatisfied, disappointed, disillusioned.”He said workers were expecting a contract offer from Canada Post, not what he described as surprising and devastating news. “I personally did not think the government was going to do an announcement like this because it is not what the Canadian public wants or needs,” said Lubinski. He said he believes that the union will fight Ottawa’s decision. 1 hour agoNisha PatelCanada Post was designed to be financially self-sufficient. For years, its operations were funded by the revenue from its own products and services, like selling stamps. It wasn’t meant to receive taxpayer dollars to operate.1 hour agoCanada Post’s pressure pointsGraeme BruceA chart showing the drop in letter deliveries across Canada, all while the number of addresses went up. (Graeme Bruce/CBC)In recent annual reports, Canada Post has been highlighting two stats squeezing the organization: There are more addresses to reach and less mail to deliver.In its latest annual report for 2024, there were 17.6 million addresses, marking a 6.7 per cent increase from five years ago. Meanwhile, 113 pieces of mail were delivered per household by the Crown corporation, a 32.7 per cent drop in the same time period.The carrier said it is an “unsustainable” situation.1 hour agoPoliticians have been talking about ending home delivery for a decadeCatharine TunneyThis is not the first time the end of door-to-door mail delivery has been considered in Canada.The former Conservative government under Stephen Harper moved to end door-to-door delivery and bring in new community mailboxes for five million Canadian addresses. But the plan met massive public outcry and even became a campaign issue.During the 2015 election the Liberals under Justin Trudeau campaigned on a promise to “save home mail delivery.” After forming government, Trudeau clarified that Canadians who have already been moved to community mailboxes wouldn’t be getting their home delivery service back.1 hour agoWhy does the federal government have to free Canada Post to make changes?Catharine TunneyAs a federal Crown corporation, Canada Post operates at arm’s length from the government and is responsible for managing its own day-to-day operations as laid out in the Canada Post Corporation ActHowever, the federal minister is responsible for Canada Post’s overall policy direction and ensures its operations and services align with government policies and priorities.That relationship has led to successive governments bringing in regulations and policies dating back to the 1980s.Today, as we’ve said, Lightbound announced his government is lifting two moratoriums: one that’s been in place since 1994 on closing rural post offices and another on community mailbox conversion.2 hours agoMinister closes with message to postal workersRhianna SchmunkMinister Lightbound during the news conference in Ottawa on Thursday. (Spencer Colby/The Canadian Press)Lightbound ended the news conference saying he has “utmost respect” for postal workers, but did not answer a direct question about layoffs down the road. He repeated that Canada Post will have to take a “cold, hard look” at its management structure, among other potential changes.
Canada Post free to end home delivery as Ottawa tries to save carrier from going broke
