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2013-12-11 at 10:24

Postal shift

By The Canadian Press
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OTTAWA - Canada Post is saying goodbye to the door-to-door postman.

The national mail service says rising costs and falling mail volumes have made it impossible to continue its traditional operations.

The federal Crown corporation plans to phase out home delivery within the next five years, replacing foot delivery with community mail boxes.

Canada Post says says about 6,000 to 8,000 positions will be eliminated over the same time period, mainly through attrition.

The postal service expects nearly 15,000 employees to retire or leave the company in the next five years.

About a third of Canadian homes still receive mail to their door, it said.

The announcement comes in the midst of the busiest time of year for postal outets, which handle a dramatic rise in both letters and packages for the Christmas holiday.

But the company says its business model is unsustainable.

"Canada Post has begun to post significant financial losses," it said in the announcement.

"If left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers."

Last month, Canada Post announced that it would ask Ottawa for financial relief next year to help support a restructuring of its business model and pension plan framework to assure long-term financial sustainability.

"The company will continue to bring the cost of labour in line with its competitors through attrition and collective bargaining over time," it added on Wednesday.

The postal service has faced intense competition from couriers, as well as technology that has led to a growing popularity of consumers paying their bills and communicating online.

In the third quarter, Canada Post reported an improved, but still big, pre-tax loss of $109 million for the period ended Sept. 28. The pre-tax loss in the comparable period a year ago was $145 million.

The Canadian Press
© The Canadian Press, 2014

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Comments

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Winger says:
Excellent news. This fat organization has cost Canadians countless millions over the years while we watched the quality of servive decline into almost absurdity.

Good job union, you destroyed a Crown corporation and thats quite an achievement.

Enjoy your unemployment cheques while they last.
12/11/2013 12:43:07 PM
stonecutter says:
bitter much?
12/11/2013 1:49:33 PM
Winger says:
No. In fact Im quite pleased.

Hopefully they shut down 99% of this unionized parasitic mess so we all can use our own money the way we want, rather than subsidizing lazy postal workers.
12/11/2013 9:29:39 PM
Miles August says:
Your blaming the union for email, electronic banking and bill payments? Because that's what has made Canada post less necessary. Canada post is meant to provide a service to Canadians, NOT create revenue. You wouldn't expect the trans Canada highway to generate a profit would you. It cost money to build and maintain and provides a service for Canadians. Yet to this day hasn't generated a dime. what a waste right?
12/11/2013 10:16:25 PM
papercut says:
Keep signing up for electronic billing folks....our woodlands workers and obviously now Canada Post depend on paper mail.

Pay the small fee to help keep these folks working.
12/11/2013 12:49:59 PM
SomeGuy says:
No I'm not going to pay the small fee. It's called progress, the notion that I need to get something on paper to protect someone's job is silly.

Using your logic I should of sent this comment mail to you, not over some fancy elcrocomputation devil machine.
12/11/2013 2:02:12 PM
rootbear says:
I believe it. I kept saying this day would be coming soon. I barely get mail nowadays. Everything electronic. To think, postal service has been around for 250 years. That's how powerful technology is. Canada Post's downfall and there will be many more in the future. Sad really....now, has my ebay purchase arrived at Rydens yet?
12/11/2013 12:54:31 PM
localdog says:
Can you pick up my new runners while you're there? I ordered them online from the States because they were less than half of what they cost here in town. Thanks.
12/11/2013 3:32:07 PM
SomeGuy says:
Who even gets mail any more? I think the only thing I get in the mail now is flyers. I know where I grew up we had community boxes since the 80's.

12/11/2013 1:03:01 PM
Thor Odinson says:
*waits for the bombardment of 'My taxes! My taxes!' from people who don't know what they're talking about*
12/11/2013 1:30:35 PM
Wayne79 says:
It sounds like you are one of those people who "dont know what they are talking about"
12/11/2013 4:45:00 PM
patti says:
It was inevitable really ~ after all let's be serious here, what's the difference between the Postal Mail Carrier, and the kid that delivers the flyers to your door ??

besides the 23.00 ++ an hour in pay.
12/11/2013 1:51:50 PM
CM Punk says:
Exactly, everything is paperless now.
I have not had door mail delivery in over 20 years in the area I live in, community mailboxes don't create chaos in my life. They are cool.

I hear a stamp for a letter within Canada is going to be just under a dollar. :(
12/11/2013 2:46:45 PM
Synical says:
Individual stamps will be $1. Bought in a roll they will be 86 cents.

I don't care about door to door delivery. I have no problem walking to the community mailbox, or hitting on my way home. But I do have an issue with the huge hike in sending letters. This is seriously going to hurt some businesses.
12/11/2013 5:24:05 PM
BetterThunderBay says:
It's sad to hear this news. I think there were two ways out of this, one more sustainable than the other.

This is this proposed way, where you cut service, thereby making it less attractive, which results in fewer customers. This way, the service continues to erode more and more over time.

Then there's the other way, where you adapt to a changing environment by making some sacrifices, but improving other things to still serve people as well as possible. This way, there is a chance the service remains viable.

Looks like Canada Post could learn something from the US Postal Service. Check out the things they're doing to stay in the game. Same day delivery in a couple pilot cities, network restructuring, potentially shifting to 5 day home delivery instead of 6 etc. It's not that delivering the mail is automatically a losing game, you just have to do it better.
12/11/2013 3:08:47 PM
patti says:
12/11/2013 6:14:15 PM
BetterThunderBay says:
My facts were straight. I didn't claim they're making money right now, I did claim that they are adapting to meet changing needs, and there is significant progress. You seem to be suggesting that 15 billion to 5 billion is a trivial improvement.

10 billion is not trivial, it's an indication that some serious progress is being made. My point is that they're turning it around (not overnight) without gutting it. I think they're headed for the black. And at the end of it all, the service will still be there.

The fact of the matter is that USPS still provides excellent service, and they're making significant headway despite the changing environment.

Canada Post just continues to erode and doesn't have to.

What's not straight there?
12/12/2013 10:05:16 AM
Wayne79 says:
Wake up folks.. All company's are looking for ways to save money and cut back on employees. The times of working for the same company for decades is OVER
12/11/2013 3:32:51 PM
CLETE says:
For the people who agree with this keep it up your jobs will be next no matter how much you make it will be to much.Sit back and laugh at the end of these jobs and some one will be laughing at yours when its gone!
12/11/2013 3:51:59 PM
tom0066 says:
You mean every negotiation year, pounding your fists, asking for more money from a corporation that is declining in use isnt a good thing? Guess they didn't learn the hard lesson our forestry/papermill employees before it was too late!!
12/11/2013 4:12:26 PM
Nawt says:
Can't say as I'm sad to see them go...
I would be more sympathetic if they weren't such whiners...can't step up a stair more than ten inches high but can trudge through knee deep snow across lawns to shorten their day.
12/11/2013 5:06:09 PM
tadzup says:
It's very sad that so many people will be losing their jobs. But should we really not keep up with the times because we want to make work for people to do? The work they're doing is no longer necessary in the same capacity that it was in the past. This is what happens as technology improves.

I've lived in areas with 'rural delivery' and locked boxes - it's a great system and many people prefer it to home delivery, myself included.
12/11/2013 5:10:03 PM
gotcha says:
Canada Post, Heinz, Kelloggs, Blackberry, Sears, Abitibi, GM ,Chrysler , Ford, Bank of Montreal and on on it goes the middle class takes it on the chin you never hear of the top 10% adjusted for cost taking the hit. We don't receive any loyality so don't give it and wear a parachute 24/7.
12/11/2013 5:38:07 PM
tsb says:
This is the biggest tragedy since the collapse of the horse and buggy industry in 1909. :(
12/11/2013 7:46:18 PM
ou812 says:
Letter carriers do get paid too much for what they do and paper mail is on its way out but i am sure there are several higher ups making six figure salaries that will keep their jobs and get big bonuses etc.

The steady decline of good paying jobs continues. The gap between the haves and havenots will grow bigger.

Keep an eye on who gers these contracts for these community mailboxes too
12/11/2013 8:33:31 PM
or$en says:
a large amount of what CP does is already done by for CP by sub contractors at half the wage.

many postees will be be let go. most sub contractors will be let go as they are replaced by postees as the union will see to that.

postees wiil take over the parcel business now handled by sub contractors.

they should have learned from purolator a long time ago after all CP owns them too.

look it up
12/11/2013 9:48:28 PM
Tbaylifer 1 says:
What about the corporate executives, will there be job loss there or maybe a wage reduction? I would hope so. After all, it's the way of the future. Progress.
12/12/2013 6:15:07 AM
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