Canada Post shake-up: Is your rural outlet safe?
The future of dozens of rural post offices in the London region is uncertain as the federal government lifts a long-standing moratorium that had prevented the closure of rural outlets across Canada.
The move comes amid efforts to reform Canada Post’s struggling finances. The Crown corporation is losing about $10 million daily and has accumulated losses of approximately $5 billion since 2018, largely due to the decline of traditional letter mail and growing competition in the parcel delivery sector.
Government action and timeline
In September, Procurement Minister Joel Lightbound announced sweeping changes to Canada Post’s business model and gave the organization 45 days to present a new turnaround plan aimed at cutting costs and improving performance.
Union response
Hours after the measures were revealed, the Canadian Union of Postal Workers, representing 55,000 members, launched a two-week nationwide strike that later shifted to rotating service disruptions.
Impact on rural communities
Since 1994, around 3,700 rural post offices have been safeguarded from closure by the moratorium. With its removal, communities across Southwestern Ontario and beyond could face reduced access to postal services.
“We’re lifting a decades-old moratorium that protected rural outlets nationwide from being closed,” said Procurement Minister Joel Lightbound.
Reporter
By Brian Williams, LFP Reporter
Author’s summary: The government’s decision to end protections for rural post offices signals deep changes at Canada Post as it faces severe financial strain and labor unrest.