Canada Post has begun preliminary work on a major restructuring plan that will gradually end door-to-door delivery for millions of households and reduce the size of its post office network, as it attempts to reverse the decline of an organisation it describes as financially unsustainable.
The plan follows initial consultations with postal unions and would see the remaining 4 million addresses still receiving home delivery converted to community mailboxes. At the same time, Canada Post will begin rationalising its retail footprint by reducing the number of post offices, particularly in urban and suburban areas considered over-served.
The reforms became possible after a tentative contract agreement was reached in December with the Canadian Union of Postal Workers, following two years of difficult negotiations and strikes. The plan also received backing from the Canadian government.
Canada Post said nearly three out of every four Canadian addresses already receive their letters and parcels through some form of centralised delivery. The nationwide conversion of the remaining 4 million door-to-door addresses is expected to take about five years and generate annual savings of roughly US$291.6 million.
More than 80% of parcels handled by Canada Post can already fit into a community mailbox’s individual or parcel compartments. Parcels that are too large, or require a signature, would still be delivered to the door or made available for collection at a nearby post office.
The initial rollout is expected to begin in late 2026 and early 2027, with around 136,000 addresses in 13 communities across the country, including in British Columbia and Ontario, selected for the first phase. Most of these areas are located next to zones already served by community mailboxes. Denser urban core areas are expected to transition later, as they pose greater operational challenges.
Canada Post said residents with functional limitations will be able to access free support measures, including adaptations such as sliding trays, Braille features on boxes or keys, and more accessible compartments. In some cases, weekly home delivery may still be provided on a seasonal, temporary or permanent basis.
The company is also turning to its retail network. It said Canadians are visiting post offices less often and making fewer in-store purchases, which has contributed to a 30% decline in retail revenue since 2021. Usage also varies considerably across the network. Initial efficiency efforts will therefore focus on consolidating post office locations in urban and suburban areas where services are more concentrated than necessary. Decisions will be based on market studies assessing each site and region, while prioritising service where it remains most needed.
Canada Post said it will continue to engage with communities, unions and employees as it determines suitable sites for community mailboxes and identifies possible retail cuts.
Meanwhile, rank-and-file letter carriers are due to vote between 20 April and 30 May on whether to approve the tentative labour agreement negotiated between CUPW and management.
The union’s negotiating committee has encouraged members to support the deal, describing it as the best achievable outcome under difficult circumstances. In a letter to members, lead negotiator Lana Smidt said the government’s endorsement of a national commission’s recommendations on postal reform had strengthened Canada Post’s position in negotiations. She also argued that the agreement gives workers the job security needed to oppose the transformation plan without facing layoffs.
Smidt said the contract ties wages to the Consumer Price Index through 2029, helping preserve purchasing power in a worsening economic environment marked in part by the US and Israel war against Iran. She also said the agreement includes gains such as continued urban job security, improvements to the short-term disability programme, higher pay for injury-on-duty leave and a new work measurement system for rural letter carriers. While acknowledging the deal is not perfect, she said postal workers still have reason to be proud of the improvements achieved under the circumstances.
