Canada Post took major steps Wednesday to make the mail company financially sustainable by 2019, a move that’s not sitting well with Windsor-Essex mail carriers.
The five point plan unveiled by Canada Post will see major changes to the nation’s mail service. These changes include the elimination of door-to-door mail service and a leaner work force.
Sammy Joseph is a 25-year mail carrier with Canada Post. In that time he’s seen the drastic changes the postage industry has faced.
"Still getting some bills, but not like we used to, like four, five, six years ago,” says Joseph. “It’s got almost 20 to 30 per cent"
Canada Post will eliminate door-to-door mail delivery, in favour of community mailboxes. Canada Post says one third of households that receive their mail at the door will be converted over the next five years. The mail carrier says this will provide “significant” savings to the company. The initial conversion to community mailboxes is slated for the second half of 2014.
"Everyone always said you're going to need a mailman, that’s not going to change,” says Colin Tyrer, a mail carrier in Windsor-Essex. “Well guess what? It's gonna."
Tyrer, like Joseph is a veteran in the postage industry. Tyrer fears the changes Canada Post is looking to implement, will result in the loss of jobs, something the company says will happen. However, Canada Post says their cost structure in much higher than its competitors and at its current level is not sustainable. The company is looking to eliminate 6,000 to 8,000 positions. Something they say will be done, mainly through attrition. It’s unclear at this time how many jobs will be cut in Windsor-Essex.
"It's going to mean loss of jobs, loss of people out on the streets," says Tyrer.
Canada Post also outlined plans to increase the cost of postage. Currently a single stamp costs $0.65 to purchase, but by March 31, 2014, that cost will skyrocket to $1. However, purchasing stamps in bulk booklets or coils will cost only $0.85 per stamp.
The action plan comes after a study in April by the Conference Board of Canada, projected a financial loss of $1 billion by 2020, unless major changes were made to its business.
“It'll be quite a drastic cut then, if that's what they're going to do, who knows,” says Tyrer.
Local mail carriers aren’t the only ones upset over Canada Post’s new plan. For 82-year-old Lina Peschiutta, the plan will severely change the way she receives her mail.
"I don't think it's fair," says Peschiutta. "We got a hard time walking, especially my husband. Now we gotta walk over there?"
The plan still requires regulatory approval, but once fully implemented Canada Post says the initiative will contribute $700 million to $900 million per year to the company’s bottom line.
