The federal government is set to begin a review of Canada Post next month, and labour experts say it’s likely laying the groundwork for a potential restructuring of the Crown corporation, which has been mired in a bitter contract dispute.
In an email Tuesday, a spokesperson for federal public works minister Joel Lightbound said the government is trying to keep Canada Post sustainable for the long-term.
“Canadians rely on a strong public postal service, and Canada Post must remain one for generations to come,” said Lightbound spokesperson Laurent De Casanove. “The government is reviewing how to best support Canada Post in meeting the needs of Canadians, and we will share more details in due course.”
Canada Post is expected to deliver its latest contract offer to the Canadian Union of Postal Workers Friday.
Earlier this year, the government said it was considering a public consultation on the Canadian Postal Service Charter, which “sets expectations” for Canada Post’s service standards.
“The goal would be to obtain views … to redefine the government’s service-oriented vision for Canada Post,” the government said in an online announcement, noting that the review takes place in a dramatically different economic reality than when the service charter came into force in 2009.
“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,” the announcement said.
The government is likely trying to lay the groundwork for a broad restructuring of the Crown corporation’s operations, argued York University labour studies professor Steven Tufts.
“They’re assembling information and positions to really justify the restructuring they want to do,” said Tufts, adding that the review will be a companion piece to a report issued in May by veteran mediator William Kaplan as part of his Industrial Inquiry Commission.
“Kaplan was one step. This review is next. … It’s an escalating strategy,” said Tufts.
Tufts said some of the government’s likely goals include closing little-used rural post offices, turning other Canada Post offices into privately-run franchises, ending five-day a week delivery, and moving more customers to community mail boxes instead of home delivery.
Those goals are all crucial to making Canada Post financially sustainable, the Crown corporation argued in its submission to Kaplan’s commission. In his final report, which found Canada Post is “effectively insolvent,” Kaplan accepted many of the Crown corporation’s arguments.
In a statement Tuesday, Canada Post reiterated that it stands by its submissions to the commission.
“We also outlined these changes in our 2024 Annual Report,” a Canada Post spokesperson said.
In a statement on the union’s website, CUPW national president Jan Simpson said the Crown corporation’s agenda is crystal clear.
“For much of the past year, Canada Post has been laying the groundwork for massive service cutbacks. The Corporation has taken every chance it can to play up its financial condition, blaming an ‘outdated’ regulatory framework ‘built for a previous era.’ There’s no question it will use this mandate review to push for this agenda,” Simpson wrote in a memo to members, in which she also urged postal workers to send letters to Lightbound.
“The challenge we face is a big one, but that’s no reason to back down. Instead, we need to show the employer and the government we’re ready to take this fight on. We need to work with our allies in labour and the community to build political pressure in support of our vision for expanded postal services,” Simpson said.
Contract negotiations between Canada Post and CUPW have dragged on for more than 18 months and led to a month-long strike late last year.
In early August, CUPW members rejected the Crown corporation’s “final” contract offer in a vote overseen by the Canada Industrial Relations Board after an order from federal jobs minister Patty Hajdu, who used her authority under Section 107 of the Canada Labour Code.
Canada Post has argued it needs a dramatic restructuring of its operations, an argument supported by a key report from Kaplan in May.
Kaplan also said that there’s an impasse in bargaining and suggested arbitration wouldn’t be a good choice to deal with Canada Post’s need for restructuring.
Kaplan’s May 15 report suggested the use of community mailboxes, the elimination of home delivery except for parcels, and the closure or some post office locations and replacing them with franchises.
Kaplan also suggested expanding parcel delivery to seven days a week, with the use of part-time and temporary employees.
