Canada Post has formally presented a comprehensive proposal to the federal government outlining significant changes to its national postal services. This move comes in direct response to a ministerial order demanding a plan to overhaul the Crown corporation's operations.
Government Directive Spurs Action
On September 25, Joël Lightbound, the Minister of Government Transformation, Public Services and Procurement, instructed Canada Post to submit its transformation strategy within a strict 45-day deadline. The corporation confirmed it completed this requirement on Friday, November 7, 2025.
Canada Post Chief Executive Doug Ettinger emphasized the corporation's approach in a Monday press release, stating: "While our situation requires that we act with urgency, we will be thoughtful and respectful in our approach and responsive to feedback."
Proposed Service Changes and Financial Pressures
The proposal details what Canada Post describes as "decisive action" necessary to create financially sustainable services for Canadians. When questioned about specific measures, the corporation declined to provide details, citing the ongoing review process with government officials.
The federal directive specifically instructed Canada Post to implement several key changes to stabilize its financial situation after reporting hundreds of millions in losses:
- Phasing out door-to-door mail delivery
- Reducing weekly mail delivery from five days to two or three days
- Converting remaining households to community mailboxes
- Modernizing the post office network
- Adjusting service standards for letter mail
- Reducing overhead costs
Canada Post acknowledged that the government's directive "removed long-standing barriers to reform," suggesting previous obstacles had prevented necessary changes.
Labor Relations and Community Impact
The proposal submission occurs against a backdrop of ongoing labor negotiations and operational restructuring. Since October 30, Canada Post and the Canadian Union of Postal Workers (CUPW), representing 55,000 employees, have resumed bargaining with federal mediators.
CUPW had previously criticized some recommendations in Minister Lightbound's September announcement as "devastating cuts" that would disproportionately harm rural, remote, and Indigenous communities, along with seniors and persons with disabilities.
Meanwhile, Canada Post continues its corporate restructuring efforts, including eliminating managerial positions and employee layoffs. Rotating strikes persist across the country, following a two-week national strike that concluded in mid-October.
The corporation faces the challenging task of balancing financial sustainability with its universal service obligation to all Canadians, particularly those in hard-to-serve regions.
