OTTAWA— With Canada Put up going through a dire fiscal future, the federal authorities is taking the primary steps in direction of a potential overhaul of its mandate.
Public Companies and Procurement Canada, the division answerable for Canada Put up Corp. and the constitution that dictates how usually it delivers letters and parcels, is planning to launch consultations about the way forward for the Crown company.
“The purpose is to interact Canadians and stakeholders to redefine the federal government’s service-oriented imaginative and prescient for Canada Put up, in a context the place the postal business panorama has modified, the wants of Canadians have developed, and the quantity of mail and letters has declined considerably to the purpose the place Canada Put up’s sustainability has been undermined,” reads a division discover.
It mentioned the consultations are supposed to “Inform the evaluation of the way forward for Canada Put up and make suggestions to (the) cupboard.”
Nationwide Put up requested clarification from the workplace of Joel Lightbound, the minister of the division, however didn’t obtain one on Wednesday.
The division says the session plan has not but been finalized, however it has recognized this fall because the time when it may start consultations.
“As a part of its portfolio tasks, Public Companies and Procurement Canada is exploring choices to modernize Canada Put up’s operations to finest go well with the wants of Canadians,” wrote ministry spokeswoman Nicole Allen, in a press release.
“Canada Put up has a mandate to supply high quality postal companies to all Canadians in a safe and financially self-sustaining method. Canada Put up have to be environment friendly and financially sustainable for the long run, and the federal government is exploring all choices to that impact.”
A spokeswoman for Canada Put up mentioned the Canadian Postal Service Constitution have to be reviewed each 5 years. Nevertheless, the final time the federal authorities did so was in 2018, which means a evaluation is now two years overdue.
The Crown company has underlined the necessity for the federal government to make main modifications to the constitution to change the service requirements that mandate Canada Put up ship mail to Canadians 5 days every week, given how few Canadians now ship mail. It has additionally flagged considerations over guidelines stopping rural submit workplace closures and stipulating the geographic density of postal shops.
The present mandate has largely been unchanged since 2009, in accordance with the company. It cited the mandate in a submission to the Industrial Inquiry Fee,
tasked earlier this 12 months with dealing with a dispute between the company and its unions.
In it, Canada Put up mentioned the mandate has turn out to be a hindrance that stops the postal service from modernizing.
Ian Lee, a professor at Carleton College’s enterprise college, who has authored two stories on Canada Put up’s scenario over the previous decade, sees the upcoming session because the “entrance finish” of a course of to restructure and “utterly and radically reinvent the submit workplace.”
Lee says a evaluation into Canada Put up’s operations is “inevitable” given how the company’s figures present it to be “hemorrhaging money,” with losses solely predicted to worsen as fewer and fewer Canadians ship letters. Canada Put up has additionally confronted intensifying competitors for parcels from non-public supply firms.
Final 12 months, Canada Put up cited a lack of round $1.3 billion, on prime of a $750 million loss in 2023. It mentioned its back-to-back losses since 2018 amounted to round $4.5 billion. Earlier this 12 months,
the federal authorities loaned the Crown company $1 billion
to proceed working because it faces “important monetary challenges.” With out it, Canada Put up mentioned it could have depleted its monetary reserves this 12 months.
Lee says that admission makes clear that working the postal service as is is now not sustainable.
Coupled with Canada discovering itself in a commerce struggle with the U.S., and Prime Minister Mark Carney promising to spend billions extra on defence, Lee mentioned the federal authorities gained’t wish to spend billions propping up the submit workplace.
“This can be a luxurious we are able to now not afford,” Lee mentioned.
Including to the postal service’s troubles has been a labour dispute with its employees that has dragged out for 18 months.
Final month, Employment Minister Patty Hajdu accredited the company’s request to
drive a vote on its ultimate supply to the Canadian Union of Postal Employees (CUPW)
which the union referred to as an assault on employees’ rights. Hajdu had mentioned she needed it as “quickly as potential,” however the union requested for extra time, citing confusion over the voting course of. The union has been in a authorized strike place since Could 2.
The dispute resulted in a strike
late final 12 months that disrupted Christmas mail
, earlier than the federal government intervened with compelled arbitration in mid-December. It has led to different labour motion, together with employees refusing extra time. Canada Put up
settled a contract dispute with its second-largest union
, the Canadian Postmasters and Assistants Affiliation, in June.
On the subject of a mandate evaluation, CUPW mentioned in a press release it was conscious of the federal government’s intention to seek the advice of concerning the postal service’s future, calling it a “vital alternative for Canadians to assist form a Canada Put up that really serves the general public curiosity.”
It mentioned it needed to make sure “all voices are heard,” saying that in previous opinions, it has made submissions and sought enter from seniors’ teams and college students, in addition to rural and distant communities, farmers, and different unions.
Lee mentioned one threat the federal government runs by embarking on consultations is listening to from these “who care probably the most” about sustaining postal service, comparable to folks residing in rural areas and older folks.
The duty for the federal government, he says, is to “mood” the suggestions it receives with the truth that “mail volumes have collapsed.” In 2006, Canada Put up delivered 5.5 billion letters, however simply 2 billion letters in 2024,
.
“I believe that they’re going to alter the mandate,” Lee mentioned. “The one query is, are they going to go to what, three days every week, two days every week, someday every week, and that’s but to be decided.”
Nationwide Put up
staylor@postmedia.com
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