OTTAWA— With Canada Post facing a dire fiscal future, the federal government is taking the first steps towards a possible overhaul of its mandate.
Public Services and Procurement Canada, the department responsible for Canada Post Corp. and the charter that dictates how often it delivers letters and parcels, is planning to launch consultations about the future of the Crown corporation.
“The goal is to engage Canadians and stakeholders to redefine the government’s service-oriented vision for Canada Post, in a context where the postal industry landscape has changed, the needs of Canadians have evolved, and the volume of mail and letters has declined significantly to the point where Canada Post’s sustainability has been undermined,” reads a department notice.
It said the consultations are meant to “Inform the analysis of the future of Canada Post and make recommendations to (the) cabinet.”
National Post requested clarification from the office of Joel Lightbound, the minister of the department, but did not receive one on Wednesday.
The department says the consultation plan has not yet been finalized, but it has identified this fall as the time when it could begin consultations.
“As part of its portfolio responsibilities, Public Services and Procurement Canada is exploring options to modernize Canada Post’s operations to best suit the needs of Canadians,” wrote ministry spokeswoman Nicole Allen, in a statement.
“Canada Post has a mandate to provide quality postal services to all Canadians in a secure and financially self-sustaining manner. Canada Post must be efficient and financially sustainable for the long term, and the government is exploring all options to that effect.”
A spokeswoman for Canada Post said the Canadian Postal Service Charter must be reviewed every five years. However, the last time the federal government did so was in 2018, meaning a review is now two years overdue.
The Crown corporation has underlined the need for the government to make major changes to the charter to alter the service standards that mandate Canada Post deliver mail to Canadians five days a week, given how few Canadians now send mail. It has also flagged concerns over rules preventing rural post office closures and stipulating the geographic density of postal outlets.
The current mandate has largely been unchanged since 2009, according to the corporation. It cited the mandate in a submission to the Industrial Inquiry Commission,
tasked earlier this year with handling a dispute between the corporation and its unions.
In it, Canada Post said the mandate has become a hindrance that prevents the postal service from modernizing.
Ian Lee, a professor at Carleton University’s business school, who has authored two reports on Canada Post’s situation over the past decade, sees the upcoming consultation as the “front end” of a process to restructure and “completely and radically reinvent the post office.”
Lee says a review into Canada Post’s operations is “inevitable” given how the corporation’s figures show it to be “hemorrhaging cash,” with losses only predicted to get worse as fewer and fewer Canadians send letters. Canada Post has also faced intensifying competition for parcels from private delivery companies.
Last year, Canada Post cited a loss of around $1.3 billion, on top of a $750 million loss in 2023. It said its back-to-back losses since 2018 amounted to around $4.5 billion. Earlier this year,
the federal government loaned the Crown corporation $1 billion
to continue operating as it faces “significant financial challenges.” Without it, Canada Post said it would have depleted its financial reserves this year.
Lee says that admission makes clear that operating the postal service as is is no longer sustainable.
Coupled with Canada finding itself in a trade war with the U.S., and Prime Minister Mark Carney promising to spend billions more on defence, Lee said the federal government won’t want to spend billions propping up the post office.
“This is a luxury we can no longer afford,” Lee said.
Adding to the postal service’s troubles has been a labour dispute with its workers that has dragged out for 18 months.
Last month, Employment Minister Patty Hajdu approved the corporation’s request to
force a vote on its final offer to the Canadian Union of Postal Workers (CUPW)
, which the union called an attack on workers’ rights. Hajdu had said she wanted it as “soon as possible,” but the union asked for more time, citing confusion over the voting process. The union has been in a legal strike position since May 2.
The dispute resulted in a strike
late last year that disrupted Christmas mail
, before the government intervened with forced arbitration in mid-December. It has led to other labour action, including workers refusing overtime. Canada Post
settled a contract dispute with its second-largest union
, the Canadian Postmasters and Assistants Association, in June.
When it comes to a mandate review, CUPW said in a statement it was aware of the government’s intention to consult about the postal service’s future, calling it a “critical opportunity for Canadians to help shape a Canada Post that truly serves the public interest.”
It said it wanted to ensure “all voices are heard,” saying that in past reviews, it has made submissions and sought input from seniors’ groups and students, as well as rural and remote communities, farmers, and other unions.
Lee said one risk the government runs by embarking on consultations is hearing from those “who care the most” about maintaining postal service, such as people living in rural areas and older people.
The task for the government, he says, is to “temper” the feedback it receives with the reality that “mail volumes have collapsed.” In 2006, Canada Post delivered 5.5 billion letters, but just 2 billion letters in 2024,
.
“I think that they’re going to change the mandate,” Lee said. “The only question is, are they going to go to what, three days a week, two days a week, one day a week, and that’s yet to be determined.”
National Post
staylor@postmedia.com
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