Canada Post to stop door-to-door delivery, postage rates to raise as well.

[Mikey2Dope]

http://news.nationalpost.com/2013/12/11/canada-post-to-stop-door-to-door-delivery-convert-to-community-mailbox-delivery/

OTTAWA — Canada Post will be ending door-to-door delivery in urban areas and boosting the cost of stamps in a bid to halt a skid into financial ruin, the Crown corporation announced Wednesday.

The move from door-to-door delivery to community mailboxes will be rolled out over the next five years, starting in the second half of 2014, and affect about one-third of Canadian households. The change will not affect rural households.

The cost of a stamp will also jump from $0.63 to $0.85 or $1, depending on whether they are bought in packages or singly. “The average Canadian household purchases fewer than 2 stamps per month,” the release notes.

While the initiative was hailed by Transport Canada Minister Lisa Raitt, it drew the ire of the NDP and Green Party.

The NDP’s Olivia Chow and Peter Julian assailed the Conservative government for the decision.

“Conservatives are destroying Canadians’ long-treasured postal services,” Chow said in a statement. “These job-killing and service-cutting measures will isolate seniors, the poor and the disabled living in urban areas.”

Canada Post said it is also planning to scale down its labour force by between 6,000 and 8,000 people, though it maintains it can do so through attrition as about 15,000 employees are scheduled to retire in the coming years.

The union that represents postal workers is holding an afternoon conference to comment on the matter.

On Parliament Hill, Julian criticized the government for the timing of the announcement. The House of Commons adjourned on Tuesday until late January.

“There are really serious concerns being raised about this and yet we have the government announcing it after the House is adjourned, and that tells you everything you want to know about how they think Canadians are going to react,” Julian said.

“It’s profoundly disrespectful to Canadians and disrespectful to Parliament.”

The Green Party’s Elizabeth May was equally disdainful.

“This decision will disproportionately affect the elderly and Canadians living with disabilities, for whom home delivery of letters and parcels provides a critical link,” May said.

“Canada Post claims to be listening to Canadians, yet I’ve yet to hear anyone tell me that they no longer want letters delivered to their homes.”

In an open statement, the Canadian Union of Postal Workers said it is “alarmed” by the “short-sighted and foolish”plan.

“If this happens, it would be the end of an era for Canada Post,” union president Denis Lemelin said. “We recognize that Canada Post needs to change, but this is not the way.” The union has advocated for postal service expansion, including introduction of postal banking.

The moves are intended to help offset growing financial losses as more Canadians have turned to online services instead of the mail.

Canada Post says that with the move they can return to “financial sustainability by 2019.”

A Conference Board of Canada report published in August estimated those losses could reach nearly $1-billion annually by 2020 if the Crown corporation did not change its approach.

The announcement comes in the midst of the busiest time of year for postal outlets, which handle a dramatic rise in both letters and packages for the Christmas holiday.

But the company says its business model is unsustainable.

“Canada Post has begun to post significant financial losses,” it said in the announcement. “If left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers.”

“If left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers.”

Last month, Canada Post announced that it would ask Ottawa for financial relief next year to help support a restructuring of its business model and pension plan framework to assure long-term financial sustainability.

“The company will continue to bring the cost of labour in line with its competitors through attrition and collective bargaining over time,” it added on Wednesday.

The postal service has faced intense competition from couriers, as well as technology that has led to a growing popularity of consumers paying their bills and communicating online.

In the third quarter, Canada Post reported an improved, but still big, pre-tax loss of $109-million for the period ended Sept. 28. The pre-tax loss in the comparable period a year ago was $145-million.

[Hobble]

My neighborhood already uses a community box, so it doesn't really affect me.

Can't believe it'd be any different for most people, other than perhaps the elderly or those who can't physically leave the home. For those individuals, could they not have an application process where you could still get your mail delivered to your house if you fell under certain criteria?

Just stop by the box on your way home from work/etc.

[VMR]

Although I feel like paper mail is a waste, I do feel bad for the post office. They need to focus more on packages and get rid of flyers. In the end they will save a more because of it.

[VMR]

My neighborhood already uses a community box, so it doesn't really affect me.

Can't believe it'd be any different for most people, other than perhaps the elderly or those who can't physically leave the home. For those individuals, could they not have an application process where you could still get your mail delivered to your house if you fell under certain criteria?

Just stop by the box on your way home from work/etc.

I agree, however going to the box and finding only junk mail is horrible.

[mbal23]

What do they consider urban? A house in Newton better not count as urban.

[hockeyville88]

I was wondering when that was going to start happening. Makes sense seeing as so much mail is now replaced with emails and online banking. It just isn't worth it to employ so many mail carriers anymore.

So someday in the future, homes will be built without mail slots and mail boxes. No more "just slip the keys in the mail slot" lol

[TOMapleLaughs]

Snail mail is dead already. Only Christmas sees any business whatsoever for Canada Post.

This is the future of door-to-door delivery though:

(Not to mention the future of surveillance and homeland security.)

[CB007]

Although I feel like paper mail is a waste, I do feel bad for the post office. They need to focus more on packages and get rid of flyers. In the end they will save a more because of it.

Junk mail is paid, no? I would think that Canada Post lives off junk mail since thats like the majority of mail we get.

[CB007]

Community mail is only one possible solution. I myself prefer simply less frequently delivery. No one needs to receive regular mail everyday.

[VMR]

Junk mail is paid, no? I would think that Canada Post lives off junk mail since thats like the majority of mail we get.

Junk mail is paid, correct. However so is the mail carrier that puts in the box. I am sure if you average it out the carrier gets paid more than what they deliver. (Not including packages)

[CB007]

Junk mail is paid, correct. However so is the mail carrier that puts in the box. I am sure if you average it out the carrier gets paid more than what they deliver. (Not including packages)

True... but it is about economy of scale. If there is no junk mail the mail carrier is still getting paid as much to deliver less mail (thus less income for CP)

Best idea - double the fee for junk mail.

[DonLever]

All I get is bills and junk mail anyways. Now companies like Telus are charging me $2 for a bill mailed to me. Might as well get all bills through the internet.

[Apple Juice]

Meh that just means a lot of people will be out of jobs... I love saying hi and having a short convo with the person that delivers my mail to my door before I head out for school if I catch her...

[Heretic]

Don't no what the fuss is all about except that it has taken so long...it started back in 1987!

The only issue is around security:

Super mailboxes in B.C. targeted thousands of times, records reveal

More than 4,800 incidents reported in 130 communities between 2008 and 2013

http://www.cbc.ca/news/canada/british-columbia/super-mailboxes-in-b-c-targeted-thousands-of-times-records-reveal-1.1413809

[vavoom]

I would be happy to have snail mail delivered to my house once a week.

Edit: NVM, I would prefer this.

[CanuckofSteel]

I thought they stopped doing door to door in the early 2000's.

Abbotsford has had community mailboxes for as long as I can remember, this will have no effect on me at all. It's not even a big deal, you just go once a week to check the mail.

[LostViking]

This is fantastic, and it sure took them long enough.

I would have also been fine with weekly, rather than daily, delivery of mail, but I think this may be even better.

[red&white]

Snail mail is dead already. Only Christmas sees any business whatsoever for Canada Post.

This is the future of door-to-door delivery though:

(Not to mention the future of surveillance and homeland security.)

Can't wait to go shopping with a slingshot

[Jimayo]

Junk mail is paid, no? I would think that Canada Post lives off junk mail since thats like the majority of mail we get.

Before they spent billions on sorting factories they pulled in record profits almost entirely due to the increased in addressed ad mail and flyers.

[TOMapleLaughs]

Can't wait to go shopping with a slingshot

Assuming armed escort security drones will tag along with them.