OTTAWA — A report from the Industrial Inquiry Commission on the Canada Post labour dispute advises gradually ending daily door-to-door letter mail delivery to individual homes, while continuing daily service for businesses.
The report also recommends ending the bans on closing rural post offices and switching to community mailboxes.
In a report released Friday, Commissioner William Kaplan stated his recommendations aim to keep Canada Post functioning as a crucial national service. “My recommendations are designed to stop and reverse the mounting financial losses by implementing necessary structural reforms, both inside and outside the existing collective agreements,” he wrote.
The report was initiated after the federal government asked the labour board to order postal workers back to their jobs last year, amid a strike that disrupted holiday mail service. It reviews Canada Post’s financial situation and its implications for labour negotiations.
Kaplan warned that Canada Post is in a severe financial crisis, bordering on insolvency. “Without prompt, well-planned, and phased changes, its financial decline will continue,” he cautioned.
He explained that Canada Post used to remain financially viable by using the revenue from low-cost urban and suburban deliveries to offset the higher expenses of serving rural, remote, and Indigenous areas. However, that system has broken down due to a major shift in the company’s core business — fewer letters are being delivered to an increasing number of addresses.
The report also recommends that Canada Post be allowed to hire part-time workers for weekend parcel delivery and to manage weekday surges. Additionally, it suggests Canada Post should be able to adjust delivery routes daily based on demand.