The minister responsible for Canada Post says the changes he announced to the company’s mail delivery business are just the “first step” in saving the Crown corporation, a project he said will take time and is “not going to be easy.”
Government Transformation and Public Works Minister Joël Lightbound announced a month ago that the government would lift its moratoriums on transitioning to community mailboxes and closing rural post offices, as well as reducing letter delivery standards.
Lightbound has said the measures will save hundreds of millions of dollars for a company that says it is losing $10 million a day.
He defended those moves Thursday, telling the House of Commons operations and estimates committee that the company has grown too large to reflect the decline in letter mail.
He added it needs to become more flexible to prioritize parcel delivery and ensure its overall survival — a mission he said was still possible to achieve with urgent action.
“It’s not going to be easy, and it will take some time,” he said. “That’s why I’ve tasked the corporation to come back with a plan to right-size itself … but also asking both the union and management to negotiate in light of the current situation that Canada Post is in.
“There’s definitely more work to do, but I think the first step to stop the bleeding, so to speak, is to go forward with these recommendations.”
The changes were among the recommendations put forward by the Industrial Inquiry Commission in May as well as the most recent government study into Canada Post, which was tabled in December.
The minister said the alternative of repeated government bailouts, such as the $1-billion loan given to the Crown corporation at the start of this year “just to keep the lights on,” is not sustainable.
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Asked repeatedly why it took years for the federal government to step in with reforms, Lightbound said the situation has “evolved” and agreed action should have been taken sooner, but noted he’s relatively new to his role.
“In hindsight, I think these changes were warranted in many instances,” he said.
“I think it’s good that we’re moving forward now, and I’m glad that I’m part of a government that’s willing to make the difficult decisions (and) show political courage.”
Lightbound acknowledged that the shift to community mailboxes for the quarter of individual Canadian addresses that still receive door-to-door delivery will impact his own constituents as well as those across the country.
Yet he said he’s made clear to Canada Post that they must inform those affected residents that people with mobility issues and seniors can sign up for personalized delivery services.
He also reiterated that Canada Post was directed to protect rural and remote mail service despite the lifting of the moratorium on closing some post offices, calling that protection “fundamental.”
The minister said post offices that will be closed are in areas once considered rural but no longer are, after growing to become suburban or even urban, and that communities will still be served.
Canada Post has vowed rural, remote and Indigenous mail service will be protected under its action plan that will reflect the government’s changes, which Lightbound set a 45-day deadline to be delivered. That means the plan is due by early November.
The Canadian Union of Postal Workers (CUPW), which has criticized the government’s reforms and launched a national strike to protest them, says it will appear at the committee next week as part of the study.
The union met with Lightbound twice earlier this month to refute Canada Post’s statements about its financial situation and urged the minister to withdraw his announcement. It has accused the government of interfering in contract negotiations with the company, which have dragged on for nearly two years.
Lightbound said Thursday it was necessary for him to bring forward the changes now so the new collective agreement can reflect Canada Post’s finances and changes to its business, including staffing levels and delivery standards.
Those negotiations will address things like parcel delivery and other business decisions that will hopefully go further toward right-sizing Canada Post’s finances and operations, he added.
“The relationship between labour and management, I’m hoping for a renewal of that relationship given the financial circumstances,” he said.
“I can tell that they both have at heart the future of Canada Post. They both want to find a viable path for the future of Canada Post, and I’m hoping that they will find ways in their collective agreement to make it possible for Canada Post to find a financially viable future.”
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