Canada Post Shake-Up: Is Your Rural Outlet Safe?
The future of many rural post offices in the London region is uncertain as the federal government lifts a decades-old moratorium on closing rural postal outlets nationwide. This change is part of broader efforts to help the struggling Canada Post reduce costs and improve its business.
Background on Canada Post's Challenges
Canada Post has been losing about $10 million daily, with total losses reaching $5 billion since 2018. These difficulties stem from a steady decline in traditional letter mail and increasing competition in parcel delivery from private couriers.
Government Measures and Union Response
In late September, the minister responsible for Canada Post announced sweeping changes to its business model, demanding a new turnaround plan within 45 days. Shortly after Procurement Minister Joel Lightbound's announcement, the union representing 55,000 postal workers initiated a two-week national strike, later shifting to rotating service interruptions.
Impact on Rural Post Offices
Since 1994, approximately 3,700 post offices have been shielded from closure. However, Lightbound confirmed the moratorium on closing rural outlets will now be lifted, putting many rural post offices at risk.
"The federal government – in sweeping changes announced to help money-losing Canada Post cut costs and turn around its business – said it’s lifting a decades-old moratorium that has protected such outlets nationwide from being closed."
"Bleeding about $10 million a day, with losses of $5 billion since 2018, Canada Post is struggling as traditional letter mail dwindles and private couriers eat into the parcel business."
"Some 3,700 post offices have been protected against closing since 1994, but Lightbound said a moratorium on rural closings is being lifted."
Author's summary: Canada Post faces severe financial losses and plans to cut costs by lifting the long-standing ban on rural post office closures, triggering labor strikes amid efforts to restructure its services.