Decade of Missed Opportunities: Canada Post Strike Highlights Deep-Rooted Issues, Expert Claims
Canada Post on the Brink: Experts Call for Urgent Transformation Amid Nationwide Strike
Canada Post faces a dire future and must undergo a radical transformation to survive, warns Ian Lee, associate professor at Carleton University’s Sprott School of Business. As the nationwide postal workers’ strike drags on, Lee argues that the Crown corporation is “at death’s door” due to mounting financial struggles and declining letter mail volumes.
“Canada Post is losing money now. It’ll lose even more next year and even more the year after,” Lee told CTVNews.ca. “They don’t understand they’re on the edge of going out of business.”
To stay relevant, Lee contends Canada Post must shift focus from traditional letter mail to becoming a competitive parcel courier service, capitalizing on the booming e-commerce sector. He supports the corporation’s proposal to expand parcel delivery to seven days a week, a necessary move in his view to compete with private couriers and address declining revenues.
A Decline Decades in the Making
Over nearly 20 years, Canada Post’s letter mail volume has plummeted from 5.5 billion letters annually to about two billion, CEO Doug Ettinger revealed at the Crown corporation’s annual general meeting in August. This decline, exacerbated by the digitization of communication and commerce, has rendered its current business model unsustainable.
While rural residents and small businesses depend on its services, Lee notes that most urban Canadians have shifted to digital communication. Meanwhile, e-commerce companies increasingly partner with gig-economy delivery players rather than Canada Post, further eroding its market share.
Missed Opportunities
Lee, who authored a 2015 report for the Macdonald-Laurier Institute on Canada Post, says the organization ignored warnings and failed to pivot earlier. “They squandered 10 years of opportunity from 2015 until now,” he said, adding that the rejection of his proposal to shift focus to parcel delivery was a critical mistake.
A Path Forward
Retail industry expert Bruce Winder agrees that Canada Post must embrace significant change, including automation, cost-cutting, and expanding services. “It’s like a ship heading in the wrong direction. They need to turn the ship toward profitability,” Winder told CTVNews.ca.
Winder also warns that adjustments such as raising prices or altering worker schedules could alienate small businesses and employees. Nevertheless, without transformation, experts predict Canada Post could cease to exist within three to five years.
As negotiations continue between Canada Post and the Canadian Union of Postal Workers, the stakes couldn’t be higher for the Crown corporation’s survival.
Canada Post Proposals Aim to Balance Financial Survival and Worker Demands Amid Strike
As the nationwide strike continues, Canada Post has outlined proposals intended to address its mounting financial challenges and employee concerns. Despite incurring losses of more than $3 billion since 2018, the Crown corporation claims its offers aim to safeguard key employee benefits while modernizing operations.
Canada Post spokesperson Lisa Liu stated in an email to CTVNews.ca that the corporation has proposed wage increases of 11.5% over four years, additional paid leave, and protections for defined benefit pensions and job security provisions. Liu emphasized that these measures reflect the company’s commitment to supporting its workforce during difficult times.
However, Ian Lee, associate professor at Carleton University, cautions that such demands could exacerbate Canada Post’s financial troubles. “These increased costs will deepen the deficit and hasten the company’s decline,” he said.
A New Delivery Model for the Future
In response to financial pressures and shifting market demands, Canada Post is pushing for a new delivery model, including expanding parcel delivery to seven days a week, introducing more competitive pricing, and making “other important improvements.”
“This new delivery model is essential for the future of the company and critical to our ability to afford the offers,” Liu said.
Canada Post has declined to provide further specifics, citing the ongoing negotiations. “We’ve outlined our proposals to CUPW at the table, but we won’t go into further details out of respect for the process,” Liu added.
Union Concerns Over Worker Rights
The Canadian Union of Postal Workers (CUPW) has expressed concerns about the proposed changes, particularly the potential expansion to seven-day parcel delivery.
“We are concerned that the creation of more part-time, low-wage jobs will further the gigification of Canada Post workers,” the union said in an email to CTVNews.ca. CUPW argues that the proposals could undermine workers’ rights by introducing unpredictable hours, reduced benefits, and weakened pensions.
The union insists that any weekend work must safeguard the rights of postal workers. “We are fighting hard for the right kind of weekend work that doesn’t compromise the rights of all postal workers,” CUPW stated.
Predicted Drastic Changes
Looking ahead, Lee predicts that whichever party forms the next federal government will likely enforce significant restructuring at Canada Post.
“I foresee large-scale downsizing and layoffs,” Lee said. “Canada Post, as it is currently structured, is unsustainable.”
As negotiations continue, the future of Canada Post hangs in the balance, with both the company and its employees grappling with the challenges of modernization and financial recovery.
