The Canadian mail will stop delivering letters home. There will be a savings program

The Canadian mail, Canada Post, has such a lot of losses that the government agreed on Thursday to implement savings, including the cessation of delivering parcels home and closing branches in rural regions. Daily post losses are $ 10 million.

“Canada Post is a national institution older than our country, it has been served by Canadians for over 150 years (…) At the same time, Canada Post has been standing in the face of the crisis of existence. From 2018, the accumulated losses are over $ 5 billion. Only in 2024 the losses were over $ 1 billion, and in 2025 they will amount to almost $ 1.5 billion,” wrote the Minister Joël Lightbound, reminding that this year The government supported the post with the amount of 1 billion Canadian dollars. Nevertheless, the result of the second quarter was the worst in history and amounted to $ 407 million.

The most important change is the end of delivering letters to homes.

Currently, three -quarters of Canadians receive a mail to special “community boxes”, i.e. grouped in one place for the inhabitants of a given neighborhood, or to boxes in apartment buildings. In 2018, in connection with protests, the installation of new “community boxes” and approx. 4 million addresses, including in the largest Canadian city, Toronto, is still served by postmen. The resignation from individual delivery of letters is to give about $ 400 million in savings per year.

Changes in shipping standards that are not priority are to give another $ 20 million savings. Currently, the average household receives two letters a week, but the system works as if much larger numbers of shipments were still delivered. 20 years ago, Canada Post provided 5.5 billion letters annually, currently about 2 billion, although the number of households increased at that time.

Changes in the network of facilities are the third big change. Since 1994, in Canada, a moratorium has been in force to close branches in rural areas, about 4,000 However, some of the former rural areas are currently urban and suburban areas, the post office is to prepare a restructuring plan for its network of facilities.

President Canada Post Doug Ettinger wrote in a statement that the government's decisions “would make the necessary changes” and assured that the actions would be developed together with the government and with employees. The goal is to ensure the further functioning of the Canadian operator.

Trade unionists from the Canadian Union of Postal Workers (Cupw) on Thursday considered government decisions as “an attack on our postal services and employees” and announced that “from now on all Cupw members in Canada Post began a national strike.”

The Canadian mail has been struggling with cheaper competition on the parcel supply market for years, including This is what influenced bad financial results. While in 2019 Canada Post served 62 percent deliveries. parcels in Canada are now – below 24 percent.

A report from May this year served as a basis for changes. ordered by the federal government after last year's post strike. In mid -November last year 55 thousand Canada Post employees began a strike after a year of unsuccessful wage negotiations and regarding working conditions. The strike ended in mid -December, the discontinuation of the negotiations was decided by the Tribunal dealing with work matters. The Canadian mail is so -called Crown Corporation, State Treasury Company.

From Toronto Anna Lach (PAP)

Lach/ JM/