Canada Post must switch to three-day delivery: expert

Union says at least 8,000 jobs would be cut

Advertisement

Advertise with us

First, Canada Post cut door-to-door delivery in order to reduce costs, now a business expert suggests it scrap five-day-a-week delivery.

Read this article for free:

or

Already have an account? Log in here »

To continue reading, please subscribe with this special offer:

All-Access Digital Subscription

$1.50 for 150 days*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Continue

*Pay $1.50 for the first 22 weeks of your subscription. After 22 weeks, price increases to the regular rate of $19.00 per month. GST will be added to each payment. Subscription can be cancelled after the first 22 weeks.

Hey there, time traveller!
This article was published 25/07/2015 (2686 days ago), so information in it may no longer be current.

First, Canada Post cut door-to-door delivery in order to reduce costs, now a business expert suggests it scrap five-day-a-week delivery.

In a report published by the MacDonald Laurier Institute Thursday, Prof. Ian Lee of the Sprott School of Business at Carleton University in Ottawa said the Crown corporation must make deep cuts.

Lee, in his 32-page report, said in order to survive, Canada Post has to go far beyond full community-box delivery.

John Woods / Winnipeg Free Press Files Canada Post continues to cut door-to-door mail service and instead are installing community boxes.

Lee said residential customers should have mail delivered to them only three days a week. He said delivering to each house accounts for 39 per cent of Canada Post’s costs.

In the next few years, Lee said, Canada Post should raise prices, get rid of its postal monopoly and convert corporate-owned postal outlets into franchises.

Business mail would continue to be delivered five days a week.

“The status quo will kill the post office,” he said.

” ‘The cheque is in the mail’ is a famous saying. My conclusion is the cheque is no longer in the mail.”

Scott Loutit, vice-president of the Canadian Union of Postal Workers, Local 856, said he believes Lee’s recommendations would cut even deeper into staffing levels than the report states.

“It would result in a lot of layoffs because if we go to three days instead of five, that’s almost half the number. That would be more than 8,000 jobs.”

Loutit also noted that while Lee is a professor at a university now, in the early 1980s he worked at Canada Post.

“This is all about more service cuts and rising prices,” he said.

“I don’t think that’s what Canadians want. It’s what we hear from them.”

‘The chamber supports the corporation’s decision to do what it considers to be viable’

— Chamber of commerce’s Dave Angus

Lee said his study wasn’t commissioned by Canada Post.

Lee said Canada Post has no choice but to adapt because he predicts letter delivery will continue to decline so that by 2020, the corporation will deliver more parcels than letters.

Dave Angus, president of the Winnipeg Chamber of Commerce, said it supports Canada Post’s strategy.

“The chamber supports the corporation’s decision to do what it considers to be viable,” Angus said.

“The chamber supports any changes in its business model.”

kevin.rollason@freepress.mb.ca

Kevin Rollason

Kevin Rollason
Reporter

Kevin Rollason is one of the more versatile reporters at the Winnipeg Free Press. Whether it is covering city hall, the law courts, or general reporting, Rollason can be counted on to not only answer the 5 Ws — Who, What, When, Where and Why — but to do it in an interesting and accessible way for readers.

Report Error Submit a Tip

Advertisement

Advertise With Us

Local

LOAD MORE LOCAL