Canada Post is facing a projected $1.5 billion loss in 2025, prompting the federal government to initiate a modernization strategy aimed at stabilizing the organization’s finances and securing its future. Government Transformation Minister Joël Lightbound emphasized the critical situation, stating that Canada Post is effectively insolvent and requires immediate action.
Acknowledging the essential service Canada Post provides to Canadians, especially in rural and remote areas, Lightbound emphasized the need to save the institution without relying on repeated government bailouts.
Transformation, Public Works and Procurement Minister Joël Lightbound outlines the proposed changes to stabilize Canada Post’s finances, including adjustments to mail services and delivery methods.
In response, the Canadian Union of Postal Workers announced a nationwide strike, effective immediately, in light of the stalled contract negotiations.
Key changes in the modernization plan include transitioning the remaining four million home delivery addresses to community mailboxes over a nine-year period, with substantial progress expected within the first four years. This shift aims to align with the majority of Canadians already utilizing community mailboxes, resulting in an estimated annual saving of $400 million for the corporation.
Furthermore, Canada Post will optimize its mail delivery process by transitioning non-urgent mail from air to ground transportation, cutting costs by $20 million annually. The plan also involves lifting the 1994 moratorium on closing rural post offices to enhance operational efficiency and address shifting demographics.
The government’s review of stamp price adjustment procedures aims to streamline the process for increased flexibility and timeliness.
