Canada Post says it will continue to move forward with the restructuring plan mandated by the federal government last fall. The plan involves a complete overhaul of its business model, including the potential permanent elimination of traditional door-to-door mail delivery services. In a statement to CTV News on Monday (March 30), Canada Post said, “This broad business transformation will ensure that we can meet the evolving needs of Canadians while avoiding becoming a continuing burden on taxpayers.”
The federal government had already warned Canada Post about its financial situation as early as September 2025. At the time, Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, stated that the agency was facing an “existential crisis.” Since 2018, Canada Post had accumulated losses of billions of Canadian dollars and was in a state of “de facto insolvency.”
Lightbound stated that this situation is “unsustainable” and instructed Canada Post to implement a series of structural reforms to ensure its long-term operational capability. Core reform measure: Replacing door-to-door delivery with community mailboxes Based on currently disclosed information, the reform measures mainly include: Adjusting the standards for mail delivery services
Change all remaining door-to-door delivery addresses to community mailboxes.
Promote digitalization and operational modernization reform
Canada Post stated that it is in ongoing communication with the federal government regarding the specific implementation details. Meanwhile, given the government’s request to initiate initial reform steps, the company has begun contacting various negotiating bodies (unions) to consult on the relevant changes.
The union strongly opposed The Canadian Union of Postal Workers (CUPW) continues to oppose the reforms, arguing that they will impact employee jobs and weaken postal service coverage in rural and remote areas. In a statement released Monday, CUPW said that it should not proceed with reform consultations at this critical stage of the agreement approval vote.
“We are fully committed to advancing the upcoming vote on the ratification of the agreement, which is a major undertaking. Now is not the right time to conduct related consultations.” The union also pointed out that this move by Canada Post and the federal government could disrupt the current labor negotiations.
The lack of transparency in the transformation plan has sparked controversy. According to union disclosures, the federal government had requested Canada Post to submit a complete transformation plan within 45 days. However, more than four months have passed since the plan was submitted, and it has still not been disclosed to the public or the union. CUPW stated that it had repeatedly requested access to the relevant documents but had received no response. “Neither the government nor Canada Post has provided us with the plan, and it remains undisclosed to this day,” the union statement said. The union called for nationwide public consultation and full consideration of stakeholders in various regions before any structural reforms are undertaken.
The reforms are also expected to involve amendments to the Canadian Postal Service Charter, which, since 2009, mandates that postal services be universal, affordable, reliable, convenient, secure, and responsive to public needs. Canada Post has confirmed that the proposed changes are still under discussion with the federal government.