The federal minister responsible for Canada Post is defending the government’s decision to end a decades-old moratorium on closing rural post offices, insisting the move will not reduce service in remote and Indigenous communities that depend on mail delivery as a lifeline.
Speaking before the parliamentary committee on government operations Thursday, Procurement Minister Joël Lightbound said the recent changes to Canada Post’s mandate are meant to modernize and stabilize the struggling Crown corporation — not to abandon rural Canadians. “I’ve made it crystal clear to Canada Post that it must maintain delivery standards to rural, remote, and Indigenous communities,” he said.
The Liberal government announced the sweeping reforms on September 25 as part of a bid to rescue Canada Post from deep financial trouble. The overhaul lifts the moratorium on rural closures, expands community mailbox service to roughly four million more addresses, and allows adjustments to delivery standards. Lightbound said the changes are designed to “lift the constraints” on the postal service and help it adapt to the digital age.
Canada Post has been bleeding cash for years. The Crown corporation has lost about $5 billion since 2018 and continues to run at a deficit of nearly $10 million per day. Earlier this year, Ottawa provided a $1 billion bailout to keep it afloat. Lightbound estimated that the reforms could save $500 million annually, noting that mail volumes have fallen sharply as Canadians shift to digital communication. “Canada Post has become too big for the volume it needs to deliver,” he told MPs. “Without any changes, we’d be in repeated bailouts.”
Lightbound said some post offices protected under the original moratorium no longer qualify as rural because they now have other service options nearby. He gave Canada Post management 45 days to present a turnaround plan to the government, calling it a necessary step toward long-term sustainability.
The postal workers’ union, however, condemned the changes and accused Ottawa of bypassing the collective bargaining process. Members of the Canadian Union of Postal Workers resumed rotating strikes shortly after the announcement, citing lack of consultation and concerns about job security. Conservative MP Kelly Block pressed Lightbound on whether the restructuring could lead to layoffs, but the minister said staffing questions fall under Canada Post’s management, not his department.
With the federal government itself undergoing a program review aimed at cutting departmental spending by 15 per cent over three years, Lightbound argued it was reasonable to expect Canada Post to follow suit. He said the recent reforms align with the findings of this year’s Industrial Inquiry Commission led by mediator William Kaplan, which reviewed previous studies on the future of Canada Post. “The transformation has to begin,” Lightbound told the committee in French.
Despite the controversy, the minister insisted the goal is not to diminish service but to preserve it for future generations. “This is about ensuring that Canadians — in cities, towns, and remote villages — continue to receive the service they deserve,” he said.