Public Works Minister Jean-Yves Duclos urged Canada Post to collaborate with its unions to address financial challenges following a pre-tax loss of $748 million, says Blacklock's Reporter.Duclos highlighted the fierce competition from non-union entities such as Amazon as a significant factor."There's an opportunity to boost revenues amid the surging demand for package deliveries nationwide," Duclos emphasized. "Simultaneously, there's potential to trim expenses by collaborating with unions."While Duclos didn't delve into specifics, Canada Post's annual report pointed out a decline in its parcel delivery market share from 62% to 29% since 2019 due to competition from private couriers. The report cautioned that without adjustments to align with current Canadian needs, Canada Post could face unsustainable losses in the coming years."It's going to be a concerted effort to enhance the competitiveness of the postal service," Duclos remarked. "The landscape has evolved, especially post-COVID-19, with an influx of new competitors who often offer lower wages and benefits."Cabinet advisors have long suggested reducing daily mail to alternate-day delivery, a move projected to save an average of $74 million annually, as indicated in a 2016 federal task force report."The Canadian Postal Service Charter mandates five-day-a-week mail delivery, which contrasts with the preferences expressed by surveyed Canadians," noted the task force report.In 2022, the Department of Public Works conducted surveys among business owners, primary users of postal services, to gauge reactions to cost-cutting proposals. A significant majority expressed support for measures such as transitioning from door-to-door home delivery to community mailboxes and reducing mail delivery frequency to every second business day.Canada Post has not reported a profit since 2017, with subsequent losses totaling $2.99 billion.
Public Works Minister Jean-Yves Duclos urged Canada Post to collaborate with its unions to address financial challenges following a pre-tax loss of $748 million, says Blacklock's Reporter.Duclos highlighted the fierce competition from non-union entities such as Amazon as a significant factor."There's an opportunity to boost revenues amid the surging demand for package deliveries nationwide," Duclos emphasized. "Simultaneously, there's potential to trim expenses by collaborating with unions."While Duclos didn't delve into specifics, Canada Post's annual report pointed out a decline in its parcel delivery market share from 62% to 29% since 2019 due to competition from private couriers. The report cautioned that without adjustments to align with current Canadian needs, Canada Post could face unsustainable losses in the coming years."It's going to be a concerted effort to enhance the competitiveness of the postal service," Duclos remarked. "The landscape has evolved, especially post-COVID-19, with an influx of new competitors who often offer lower wages and benefits."Cabinet advisors have long suggested reducing daily mail to alternate-day delivery, a move projected to save an average of $74 million annually, as indicated in a 2016 federal task force report."The Canadian Postal Service Charter mandates five-day-a-week mail delivery, which contrasts with the preferences expressed by surveyed Canadians," noted the task force report.In 2022, the Department of Public Works conducted surveys among business owners, primary users of postal services, to gauge reactions to cost-cutting proposals. A significant majority expressed support for measures such as transitioning from door-to-door home delivery to community mailboxes and reducing mail delivery frequency to every second business day.Canada Post has not reported a profit since 2017, with subsequent losses totaling $2.99 billion.
