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canadian capital freeing Canada carry to do john r. Major changes — including reduction in door-to-door delivery
Does Canada Post need to rethink the way it operates?
Canada Post laying off dozens of managers amid shaky financial future
The Canadian Union of Postal Workers says they weren’t told about Lightbound’s announcement in advance, a reporter says to Lightbound.
The Minister says he had a “productive conversation” with CUPW on Friday, but that he wasn’t aware of a postponed meeting.
“I’ll be always happy to meet with the union to discuss,” said Lightbound. He said the new measures address some of the issues the union had previously raised with the company.
Lightbound is authorizing Canada Post to convert 4,000 addresses to community mailboxes, which he says will lead to $400 million in savings.
He also announced that the moratorium on closing rural post offices will be lifted, which was imposed in 2014 and covers 4,000 locations. The country has changed since then — some rural areas now may be suburban or urban, Lightbound says.
Lightbound says that a “stalled relationship between management and labour have hindered Canada Post’s capacity to evolve,” calling the corporation “effectively insolvent.”
He adds that government bailouts are “not the solution.” The federal government lent Canada Post $1 billion earlier this year.
Minister Lightbound starts his remarks in French, calling Canada Post an institution that needs to be saved. The Crown corporation is losing millions of dollars every day, he says, and has lost considerable ground to private companies since 2018.
The federal government is allowing Canada Post to end home delivery and convert the remaining four million addresses that still receive it to community mailboxes, as part of a plan Ottawa says will allow the corporation to stabilize its finances and ensure the survival of the corporation. Some rural post offices are also going to close.
Minister Lightbound is speaking now.
Minister Lightbound is expected to kick off his news conference about Canada Post’s future at 12:45 p.m. ET.
We’ll be carrying the livestream here and posting updates as it happens.
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