Canada Post report recommends phasing out daily door-to-door mail delivery

OTTAWA — An industry inquiry commission formed in the wake of a labour dispute at Canada Post has recommended that daily door-to-door delivery of mail be phased out, while daily delivery to businesses should continue.

The report also says a ban on closing rural post offices and converting them to group mailboxes should be lifted.

“My recommendations are based on the conclusion that Canada Post can be preserved as a vital national institution,” wrote Commissioner William Kaplan in the 162-page report released Friday. “I have designed these recommendations to address the current problem: to halt the spiraling financial losses and to address the structural changes needed, both inside and outside of collective bargaining agreements.”

The report comes after the federal government asked the labour board to reinstate postal workers last year amid a strike that disrupted holiday mail deliveries.

The report examines Canada Post’s financial situation and its conditions for reaching a labor agreement.

In his report, Kaplan wrote that Canada Post is facing an existential crisis and is effectively bankrupt.

“Without thoughtful, gradual, and immediate changes, its financial situation will continue to deteriorate,” he warned.

Canada Post CEO Doug Ettinger said in a statement that Kaplan’s report provides the company, its employees and the Canadian Union of Postal Workers (CUPW) with an honest and frank assessment of the challenges facing Canada Post.

He welcomed the recommendations, saying the report comes at a “critical time” when Canada needs to strengthen its economy against threats from the United States.

Kaplan explained that Canada Post has previously been able to operate sustainably, with low-cost delivery in urban and suburban areas offsetting the cost of delivery in rural, remote and Indigenous areas. But that model is no longer working, as mail volumes have declined and the number of addresses has increased.

He also wrote that the negotiating parties are “completely at odds” in their positions, which has led to a stalemate in the talks. Meanwhile, Kaplan blamed the failure of the negotiations more on the CUPW union, which he said wants to continue the status quo and even improve it.

Patty Hajdu, the new Minister of Employment and Families, wrote in a message on the social network X that the report offers “reasonable proposals to continue the negotiations in a constructive atmosphere.”

She added:
“It is time to put aside all differences, focus on common goals, and build a strong postal system for today and tomorrow.”

The report also recommends the following:

Canada Post should be able to hire part-time employees to deliver on weekends and help during peak times of the week.

Delivery routes should be flexible based on daily workload.

The CUPW has consistently resisted proposals that would lead to part-time employment, seeing it as a threat to the job security of full-time employees.

Earlier this week, Canada Post “temporarily suspended” negotiations with the union, saying it was reviewing its proposals to include more realistic financial terms after days of inconclusive talks.

The CUPW union called the move a “trick” and accused the employer of being unwilling to engage in real negotiations.

“Canada Post will work with employee representatives and the federal government to overcome the challenges and find a sustainable path,” Ettinger said Friday.

The CUPW union said it had received Kaplan’s report but had not yet responded. It was scheduled to meet with Patty Hajdu on Friday to review the report and discuss the negotiations.

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