Canada Post an ‘essential service’ but needs to adapt, say Canadians

Public open to paying more, getting less

Canadians are sending fewer letters than ever before, but many still view Canada Post as an “essential service” and express openness to costcutting measures including more expensive stamps, less frequent mail delivery and increased use of superboxes to replace door-to-door delivery.

The findings come from recently published government public opinion research that included focus group discussions and telephone surveys. Results will be considered by Canada Post executives this fall when they start leafing through a mountain of suggestions from community consultations and surveys to figure out how the organization should adapt to an era where people are sending fewer letters but ordering more parcels through online shopping.

“The time to make changes is now. We’ve seen this coming for awhile,” said Canada Post spokesperson Jon Hamilton.

Canada Post reported a significant financial loss in 2011 and is projected to have up to $1 billion in annual operating debts by 2020 unless it changes its business model, said the Conference Board of Canada in an April 2013 report.

That report stressed that a series of belt-tightening measures were needed to make the organization financially sustainable.

But Hamilton said deciding which measures to take is proving to be a difficult process.

Since the Conference Board of Canada report was released, Canada Post has conducted 46 community consultations across the country about how the corporation can continue to serve Canadians without breaking the bank.

Hamilton said every group has different needs and that what works for average Canadians might not sit well for all groups that use the postal service.

For example, though focus groups in the governmentsponsored public opinion research said they wouldn’t mind receiving mail less frequently, Hamilton said this wouldn’t be ideal for business owners and charity executives who depend on Canada Post to send and receive invoices and cheques in a timely manner.

Other suggestions, including increased use of superboxes, could cause fewer problems. Hamilton said door-to-door delivery is the most expensive way to deliver mail and that two-thirds of Canadians have been able to cope well with other methods of mail delivery, including shared community or apartment mailboxes.

But this won’t be ideal for everyone, especially people with disabilities or seniors who have problems getting around.

“We’re not going to be able to do everything everybody wants and we’re not going to be able to make everyone happy,” Hamilton said.

He added Canada Post has not made any decisions yet about how it will trim costs and that there’s “no immediate timeline” for when the organization will announce changes to its business model.