Canada Post workers across the country have walked off the job in response to what the union calls the “government’s attack on our postal service.”
The news comes just hours after Ottawa announced it will accept all of the recommendations in the Industrial Inquiry Commission’s report.
Minister Joel Lightbound told reporters the Crown corporation is facing an existential crisis.
“The bottom line is this – Canada Post is effectively insolvent,” said Lightbound. “It provides an essential service to Canadians and in particular to rural, remote and Indigenous communities. Canadians are rightfully attached to it and want it safe. However, repeated bailouts from the government are not the solution.”
Canada Post is going to cut back on how often mail gets delivered straight to your door as it forges ahead to fix its finances.
Lightbound said adjusting standards mail that is not urgent to travel by ground, instead of air, saving more than $20 million.
It means on average mail will likely take longer to get to your mailbox.
Other changes the federal government is implementing, is restructuring management, and converting 4 million more to community mailboxes, lifting the moratorium on closing rural locations and raising the cost of stamps.
“Taken together, these measures will help stabilize Canada Post’s financial situation by generating close to half a billion dollars per year. But there’s more work to do as our government reviews its expenses so that we can spend less and travel more,” said Lightbound.
Lightbound also said there is less parcel mail these days, and they are facing competition with private mail carriers.
Canada Post applauds move
Meanwhile, Canada Post is applauding this move by the federal government.
In a statement released Thursday afternoon, the corporation said the announcement will allow the service to “chart a strong, financially sustainable path forward that supports the changing needs of Canadians.”
President and CEO Doug Ettinger said, “Today’s [Thursday’s] announcement will allow us to make changes needed to restore Canada’s postal service for all Canadians by evolving to better meet their needs.”
He adds that they take the responsibility “seriously” and will work closely with the government and employees to “move with urgency” to implement the necessary changes.
“Our goal is to ensure that a strong, affordable, Canadian-made, Canadian-run delivery provider supports the needs of today’s economy and delivers to every community across the country.”
Canada Post has been in negotiations with the Canadian Union of Postal Workers (CUPW) has been ongoing for a year and a half.
Comments