Canada Post Shake-up: Is Your Rural Outlet Safe?
The future of many rural post offices in the London region is uncertain as the federal government lifts a decades-old moratorium on closing rural postal outlets. This change is part of broader measures to help Canada Post, which has been struggling financially.
Background on Canada Post's Financial Struggles
Canada Post has been losing around $10 million daily, accumulating $5 billion in losses since 2018. The decline in traditional letter mail and increased competition from private couriers in the parcel delivery market have contributed to these challenges.
Government Response and New Business Model
In late September, the minister responsible for the Crown corporation announced major changes to Canada Post’s business operations. The corporation was given 45 days to develop a new turnaround plan.
Labor Impact and Service Disruptions
Immediately following the announcement by Procurement Minister Joel Lightbound, the postal workers’ union representing 55,000 employees initiated a two-week nationwide strike, later shifting to rotating service interruptions.
Moratorium on Rural Post Office Closures
- Since 1994, roughly 3,700 post offices have been protected from closure.
- Minister Lightbound confirmed the federal government is now lifting the moratorium on rural post office closures.
"Some 3,700 post offices have been protected against closing since 1994, but Lightbound said a moratorium on rural closings is being lifted."
The lifting of this moratorium suggests many rural postal outlets could face closure as Canada Post seeks to reduce costs and reinvent its services.
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