Ottawa says the changes in delivery standards will save the postal service more than $20-million annually.The Canadian Press
The federal government has instructed Canada Post to end door-to-door delivery of mail across the country and shut down post offices in areas that were considered rural, but are now suburban, as part of sweeping changes to generate savings for the beleaguered national postal service.
The directives from Ottawa – the sole shareholder of Canada Post – come amid a hostile and protracted labour negotiation between the Canadian Union of Postal Workers and the postal service, which has dragged on for more than 20 months. Canada Post is due to present new offers to CUPW on Sept. 26, in hope of reaching a tentative deal before the start of holiday season.
“Canada Post is effectively insolvent and repeated bailouts are not a long-term solution,” said Joel Lightbound, Minister of Government Transformation, Public Works and Procurement, in a statement on Thursday. “Transformation is required to ensure the survival of Canada Post and protect the services Canadians rely on.”
Roughly three-quarters of Canadians already get their mail through community, apartment and rural mailboxes, while one-quarter still receive mail directly at their door, according to the federal government. It says converting the remaining 4 million addresses to community mailboxes will generate close to $400-million in annual savings for Canada Post.
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The government is also instructing Canada Post to adjust its letter mail delivery standards by moving non-urgent mail by ground instead of air. That effectively means Canadians will experience longer wait times of up to a week to receive letter mail.
According to Canada Post, the average household receives just two letters per week, but operations are designed for volumes that are far higher. In 2006, for example, Canada Post delivered 5.5 billion letters, but by 2024, that number had eroded to just two billion letters. Ottawa says the changes in delivery standards will save the postal service more than $20-million annually.