Canada Post’s president and CEO Doug Ettinger has thrown his support behind the federal government’s sweeping overhaul of the postal service, even as a nationwide strike by postal workers enters another week.
In an open letter published Wednesday, Ettinger acknowledged the “extremely challenging” labour unrest but said the Crown corporation is committed to bargaining in good faith. He described the changes as essential to restoring stability to a service that he called a “vital national institution” and emphasized that Canadians “deserve a postal service that is strong, stable and fits their needs.”
The government announced on Sept. 25 that four million Canadians will lose door-to-door delivery in favour of community mailboxes over the next nine years. Daily weekday delivery will also be scaled back. Procurement Minister Joël Lightbound said the changes are necessary to stop the corporation from “bleeding money” as mail volumes continue to decline.
Ettinger agreed that converting households to community mailboxes would generate “significant savings” and added that while the retail network needs modernization, Canada Post remains committed to preserving services in rural, remote, northern and Indigenous communities. He also noted the company is “overstaffed” and pointed to attrition as a way of reducing costs, with thousands of employees eligible to retire in the next five years.
Prime Minister Mark Carney defended the overhaul during question period, calling Canada Post “essential” but warning that the corporation is losing millions of dollars each day. “We need a viable postal service. Currently, the situation is difficult. We need to restructure,” he said.
Meanwhile, the Canadian Union of Postal Workers has rejected Ottawa’s plan and continued picketing after nearly two years of failed contract talks. Labour Minister Patty Hajdu has urged both sides to work toward a deal quickly but did not rule out federal intervention to end the strike.
The crisis follows years of financial decline. An industrial inquiry earlier this year declared Canada Post effectively insolvent and recommended a series of cost-cutting measures — most of which the government has now adopted. The corporation itself reported losing upwards of $10 million per day this past summer, relying on federal support just to keep operating.
House of Commons Speaker Francis Scarpaleggia has so far declined to grant an emergency debate on the future of Canada Post, though he left the door open to reconsidering if the situation worsens.
As the strike continues and Canadians brace for reduced services, the future of one of the country’s oldest institutions now hinges on whether Ottawa’s controversial restructuring can deliver the stability its supporters promise.