Major changes are afoot at Canada Post. The federal government is finally making an overdue overhaul of its own to shore up its own shaky finances. The initiative comes in response to a nationwide postal workers’ strike and findings from an industrial inquiry commission report that revealed Canada Post’s effective insolvency. Doug Ettinger, the CEO of Canada Post, expressed his support for these changes in a public letter. Smartly, he called for completely restructuring the postal service to ensure its long-term viability.
That’s part of the huge planned overhaul by the federal government. In the next nine years, they will replace door-to-door delivery for four million Canadians with a community mailbox model, igniting national protests. This shift, according to Ettinger, is projected to produce “huge savings” for the nonprofit. In reality, this development marks the death knell for daily, five-day-per-week delivery to all Canadians. This understandably raises alarm among postal workers and postal customers alike.
Prime Minister Mark Carney has voiced his commitment to Canada Post, deeming it an “essential” service that must be preserved. He acknowledged the current financial challenges, stating, “Currently, the situation is difficult. Canada Post is losing millions of dollars. We need to take action, we need to restructure.” His comments highlight how acute the moment is. Over the past few years, Canada Post has found itself relying more and more on the federal government to sustain operations.
Besides the move to community mailboxes, the plan calls for attrition to be the primary means of workforce reduction. With a large portion of their workforce reaching retirement eligibility in the next five years, they have an incredible opportunity to make operations more efficient. Procurement Minister Joël Lightbound noted the need for efficiency, stating, “Serving a country as large as Canada will always be labour-intensive, but we’re overstaffed.”
Despite these efforts, House of Commons Speaker Francis Scarpaleggia recently denied a request for an emergency debate concerning Canada Post’s future. This decision acknowledges public response to the intricacies of the issue and a wide range of sentiments on how to move forward.
“The journey to restore and renew the postal service is now underway,” Ettinger remarked. “Canada Post remains a vital national institution — and Canadians deserve a postal service that is strong, stable and fits their needs.” His words underline just how critical this overhaul is for the national organization. It further underscores its importance to the constituents who rely on its services.
With mail volumes only going one way, Canada Post has a long climb ahead to get on the path to long term sustainability. Though much of the damage has been done, the federal government has taken several steps recommended by the commission’s report to ensure the survival of the postal service. Whether these changes will truly be effective is still a question to be decided, as stakeholders watch these important changes play out and develop.
