Canada Post on Monday received government approval to proceed with its turnaround plan outlined last fall, which calls for the elimination of door-to-door residential delivery and other measures designed to put the organization on a path towards financial sustainability.
At the government’s direction, Canada Post said it will begin consultations with union bargaining units on how to modernize the national post.
The proposed changes include replacing door-to-door delivery with community mailboxes, closing rural post offices and changing delivery standards for letter mail. Non-urgent mail will be allowed to move by ground instead of air to reflect lower volumes. The ministry of government transformation, public works and procurement gave Canada Post 45 days to submit a plan for implementing further transformation ideas.
The move comes as letter carriers, represented by the Canadian Union of Postal Workers, are preparing to conduct elections on ratifying a labor agreement that was finalized at the end of January. Contentious labor talks over more than two years were pockmarked by two general strikes, rotating area strikes and work slowdowns that frustrated Canadian residents and businesses. The parties settled on contract terms Dec. 22, but it took several extra weeks to hammer some provision into their final form.
The CUPW ratification vote is scheduled from April 20 to May 30.
Canada Post, which has lost more than $3 billion over seven years, pushed for a flexible business model to compete in an environment of less mail demand and alternative parcel carriers.
CUPW, in a statement, complained that the announcement by Canada Post and the government “is yet again another attempt to derail our negotiations process” and that it “will continue to fight back against cuts to the postal service.”
Canada Post said it will engage with municipal officials and other key stakeholders once initial union consultations are complete.
“Canada Post has reached an important turning point. Our transformation will strengthen the postal service, allow us to be a better partner for businesses, and help us meet our dual mandate of delivering for all Canadians in a way that is financially self-sustainable.
“We’re committed to moving forward in a thoughtful way that prioritizes service for all Canadians while protecting access to vital postal services in rural, remote and Indigenous communities. We’re also committed to treating employees with respect throughout this process,” the carrier said in a statement.
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