Canada Post is facing financial challenges with a projected loss of $1.5 billion in 2025, leading the federal government to unveil a modernization strategy aimed at stabilizing the corporation. The plan includes transitioning the remaining four million addresses with home delivery to community mailboxes, a move that is expected to save Canada Post $400 million annually. Additionally, the corporation will optimize mail delivery methods, switching non-urgent mail from air to ground transport to save $20 million yearly.
Furthermore, the government is lifting the 1994 moratorium on closing rural post offices, particularly in areas that have transitioned from rural to urban settings. Stamp price adjustments are also under review to enhance flexibility and efficiency in the pricing process. Notably, the government ensures that the delivery accommodation program for individuals with mobility challenges will be maintained even as home deliveries phase out.
The proposed changes align with recommendations from the Industrial Inquiry Commission led by William Kaplan. Joël Lightbound, Minister of Government Transformation, Public Works, and Procurement, emphasized the urgency of transformation to secure the future of Canada Post, which has faced significant financial losses totaling over $5 billion since 2018.
Kaplan’s report highlighted the decline in letter mail volume, emphasizing the need for Canada Post to adapt to changing trends. The ongoing labor dispute between Canada Post and the union, revolving around pay increases and working conditions, adds further complexity to the situation. Negotiations have been ongoing for an extended period, with pressure mounting to reach a resolution as the holiday season approaches.