Canada Post will phase out home mail delivery over the next five years, eliminating between 6,000 and 8,000 jobs, it announced December 11.
Home delivery will be replaced with community mailboxes, with the first phase of delivery cuts taking effect in late 2014.
The Canadian Union of Postal Workers (CUPW) said it is shocked by this news, calling it a "rash decision."
"If this happens, it would be the end of an era for Canada Post," said Denis Lemelin, CUPW national president. "We recognize that Canada Post needs to change, but this is not the way."
"Where many postal operators are responding to a changing postal business with innovation, Canada Post is relying on cuts and rate increases."
Increasing costs, in particular labour costs, and decreasing mail volumes have made it impossible to compete with private-sector delivery services, Canada Post said.
Canada Post said that with its average employee age being 48, around 15,000 workers would be retiring or leaving the company over the next five years.
In September, Mike Shearon, general manager of Canada Post's Western Canadian operations, told Business in Vancouver that if the Crown corporation were to continue on the same path, it would be losing $1 billion per year by 2020.
In addition to the sweeping delivery cuts, Canada Post is increasing the cost of stamps to $0.85 – a 35% jump over the current price of $0.63.
"The skyrocketing stamp prices will make the postal service inaccessible to many people," Lemelin said.
Canada Post has not announced the neighbourhoods where the first cuts will take place.
- With files from Jen St. Denis
