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Standing Committee on Government Operations and Estimates

Canada Post Corporation

Date / Time: October 23, 2025, 3:30 pm - 4:30 pm

Location: In person

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1. Opening Remarks

The Honourable Joël Lightbound,

Minister of Government Transformation, Public Works and Procurement

Standing Committee on Government Operations and Estimates (OGGO)

Canada Post Transformation

October 23, 2025

Opening

Before I begin, I would like to acknowledge that we are gathered today on the traditional, unceded territory of the Algonquin Anishinaabe People.

I would like to thank the Committee on Government Operations and Estimates for this opportunity to discuss the future of Canada Post.

I would also like to thank the Committee for their valuable report, entitled Canada’s Postal Service: A Lifeline for Rural and Remote Communities.

As Minister of Government Transformation, Public Works and Procurement, I welcome the work of this Committee, and our government is committed to addressing their thoughtful recommendations. On Monday, October 20, 2025, the Government tabled its response to this Committee's report, and I would be pleased to discuss these matters today.

Mr. Chair, we are equally committed to seeing Canada Post through this existential crisis, and I continue to urge both the union and Canada Post to find a path forward at the bargaining table. That’s why we are acting to ensure Canada Post can continue to serve Canadians. Because it is an institution worth saving.

Context

Since Confederation, and to this day, postal workers have connected Canadians, rain or shine, in small towns and in big cities, providing a lifeline to hundreds of northern, Indigenous and remote communities.

But the current situation for Canada Post is unsustainable.

Since 2018, Canada Post has accumulated more than $5-billion in losses. In 2024, it operated at a loss of $1.3-billion and, in January of this year, required an injection of $1-billion to keep it afloat.

In the second quarter of 2025, the Corporation lost $407-million, their worst quarter ever, and now the Corporation is losing $10 million every day.

Canada Post is effectively insolvent.

Twenty years ago, Canada Post delivered 5.5 billion letters per year. Today that number is 2 billion. And twenty years ago, Canada Post delivered to 14.3 million addresses. Today that number is 17.6 million.

While Canada Post delivers fewer letters to more addresses, Canadians have been sending and receiving more packages than ever before—but they are turning toward private competitors.

Mr. Chair, Canada Post provides an essential service to Canadians and in particular to rural, remote and Indigenous communities, and Canadians rightfully want it saved.

However, ongoing bailouts from the Federal Government to maintain the status quo is not the solution.

Government Action

Canada Post, a Federal Crown Corporation, is part of my portfolio. As the Minister responsible, I must ensure that the overall direction of Canada Post aligns with the government’s policies and objectives.

That is why in September, I announced that the Government of Canada would accept the recommendations directed to the government by the Industrial Inquiry Commission, led by William Kaplan.

This means making a series of changes to stabilize the financial situation at Canada Post, including flexibilities in delivery standards.

The average household now receives just two letters per week, yet operations are still designed for much higher volumes. Adjusting delivery standards will allow non-urgent mail to travel by ground instead of air and will save more than $20 million a year to the Corporation.

This government has also removed the moratorium on the conversion to community mailboxes. Three-quarters of Canadians already receive mail through community, apartment or rural mailboxes, while one-quarter still receive door-to-door delivery.

I have authorized Canada Post to introduce community mailboxes to approximately four million more addresses, which will ultimately save the Corporation nearly $400 million per year.

As recommended, we’ll be lifting the rural moratorium, and I have instructed Canada Post to come back with a plan, within 45 days of the announcement, to protect service in rural, remote and Indigenous communities.

Let me be clear: Canada Post has an obligation to serve all Canadians in every community in Canada, and that will not change.

Lastly, the government is reviewing the process for increases to the stamp rate to modernize and shorten it, in line with the Kaplan recommendations.

These measures will help stabilize Canada Post’s financial situation by generating close to half a billion dollars in savings a year. But there is more to do.

I have also asked Canada Post to come back to me within 45 days with a plan on how they will be taking immediate action to address its financial challenges: finding efficiencies, reducing costs, reducing overhead, and reviewing and lightening its management structure.

Closing

Mr. Chair, there are choices that we need to make as a government and the path forward, if we do nothing, is $10 million in losses every day. Inaction is not an option.

This is a pivotal moment, not just for Canada Post but for Canadians who rely on it every single day. With these changes, we are putting the Corporation on a better, more sustainable path to ensure a strong, viable Canada Post for generations to come.

Thank you.

2. Canada Post Transformation

On September 25, 2025, the Minister responsible for Canada Post announced that he had accepted the recommendations to the Government of the Industrial Inquiry Commission, led by William Kaplan, made in its report released on May 15, 2025, and instructed Canada Post to begin transforming its operations to stabilize the corporation’s finances and enable its modernization. Additionally, Canada Post was instructed to review its overhead costs and management / executive structure.

Action taken to date

Building on the recommendations of the Industrial Inquiry Commission, the Minister of Government Transformation, Public Works and Procurement, responsible for Canada Post, announced the following measures:

The Minister further instructed Canada Post to operationalize the transformation measures announced and return with a plan within 45 days with additional proposals to return the Crown corporation to financial solvency. As part of this plan Canada Post is expected to review its corporate structure and reduce its overhead costs by at least 15 percent, aligning with the spirit of the Government’s comprehensive expenditure review.

Canada Post must also outline an implementation plan detailing how it will right-size the retail post office network in overserved areas, without removing locations in underserved areas, before any post office closures occur.

The Chair of the Board of Directors of Canada Post has since acknowledged receipt of the instructions and expressed support for the measures announced.

In addition, on October 17, 2025, the Government tabled its response in the House of Commons to the report of the Standing Committee on Government Operations and Estimates entitled "Canada’s Postal Service: A Lifeline for Rural and Remote Communities", tabled on June 20, 2025. The response highlights the measures undertaken to begin transforming Canada Post while acknowledging this was just a first step and underlining the Government’s commitment to continue to protect the services that Canadians rely on from coast to coast to coast, particularly those in rural, remote and Indigenous communities.

Timelines for completion

The measures announced were the first step in what will be a multi-year transformation.

Canada Post has been asked to provide an implementation plan within 45 days.

The operationalization of the transformation of Canada Post will be overseen by Canada Post’s Board of Directors, the Minister responsible, and the Treasury Board via Canada Post’s annual corporate plans, and supported by officials at PSPC.

Canada Post will report on its progress in future annual reports, which will continue to be tabled in Parliament, along with corporate plan summaries on an annual basis.

Costs (To date and projected)

The Government is committed to ensuring that all Canadians continue to have access to the postal services they rely on.

Additional financial support may be required in the near to medium term, while Canada Post implements the transformative measures.

When fully implemented, the measures announced on September 25 are expected to deliver annual savings exceeding $500 million.

Legislative requirements

The Government is also reviewing the time-consuming regulatory process for increases to the stamp rate, in line with Commissioner Kaplan’s recommendations. This may require future legislative amendments.

Historical Background

Table 1: Canada Post’s scope and size in 2015, 2020, and 2024
  2015 2020 2024
Revenue $6.316B $6.942B $6.142B
Pieces delivered 8.789B 6.252B 6.353B
Lettermail 3.691B 2.540B 2.009B
Parcels 181M 389M 240M
Direct marketing 4.917B 3.323B 4.104B
Addresses served 15.814M 16.750M 17.609M
Delivery Routes 21,770 22,000 21,800
Employees N/Atable 1 note 1 68,153 62,315
Post offices 6,252 6,026 5,716
Processing Plants 21 21 22
Letter Carrier Depots 485 474 447
Table 1 Note
Table 1 Note 1

In 2021, Canada Post changed how it reports employee figures in its Annual Report, comparable figures from 2015 are not readily available. In 2015 Canada Post had 50,348 full-time and part-time employees (excluding temporary, casual, and term); however, employee figures for 2020 and 2024 include temporary, casuals, and terms.

Return to table 1 note 1 referrer

3. Rural Postal Service

Issue

Questions have been raised on the level of postal service in rural communities and on the moratorium on rural post office closures.

Key facts

Key messages

If pressed on post office closures:

If pressed on Canada Post’s rural network:

If pressed on OGGO’s recommendation to leverage Statistics Canada’s index of remoteness

If pressed on rural deliveries and services:

Background

Under the Canada Post Corporation Act, Canada Post is mandated to provide a postal service that meets the needs of Canadians, while conducting its operations on a self-sustaining financial basis. In return for its exclusive privilege to collect, transmit, and deliver letters within Canada, the corporation must fulfill its service obligations and maintain universal service across the country, including in rural and remote areas. However, Canada Post is not currently self-sustaining, having experienced seven consecutive years of losses, from 2018 to 2024, with the 2024 loss being $841 million before taxes. The corporation is on track to lose even more in 2025.

Community Services and Rural Moratorium

In 1994, the Government imposed an indefinite moratorium on the closure and franchising of rural post offices, announcing that no rural or small-town post offices would close or be converted into dealerships.

In 2009, the Government confirmed the continuation of the moratorium and established the Canadian Postal Service Charter. The Charter reflects the Government's commitment to the provision of a universal, efficient and economically viable postal service for all Canadians, rural and urban. The Charter was then maintained in 2018.

In 2024, Canada Post met its obligations under the Canadian Postal Service Charter; however, the Charter acknowledges that situations with repercussions on the operation of small post offices may unfortunately arise. Retirements, sickness, deaths, fires, lease expiries or the sale of businesses are things that happen and can inevitably affect service in small rural post offices. Canada Post follows a community outreach and consultation process to manage these changes in rural communities.

In 2024, there were 218 events with the potential to disrupt rural post office operations. In 52% of cases, retail services were maintained in the same community and 17% were resolved through services provided in nearby towns. The remaining cases were either staffed or underwent review through additional community consultations. 

4. Indigenous Access to Postal Service

Issue

Concerns have been raised that the government's announcement to transform Canada Post may negatively impact Indigenous and remote communities. Canada Post continues to prioritize reconciliation and service delivery in these areas.

Key facts

Key messages

Background

Canada Post’s Indigenous and Northern Reconciliation Strategy, launched in 2020 and refreshed in 2025, is a multi-year commitment to improving postal services, employment, procurement, and community safety in Indigenous and remote communities. The strategy is guided by two pathways: an internal pathway focused on increasing Indigenous awareness and inclusion across the organization, and an external pathway focused on supporting the well-being and growth of Indigenous and Northern communities.

Postal service improvements are a cornerstone of the strategy. Since 2021, Canada Post has completed 95 postal service improvement projects in Indigenous and Northern communities. These include installing new full-service dealership post offices and Pick & Drop locations, enhancing civic addressing and signage, upgrading existing facilities, adding community mailboxes, and providing training. Each project is developed in partnership with local Indigenous leaders and delivered by cross-functional teams to ensure it meets community-specific needs.

Canada Post has also piloted Community Hubs in four locations—Little Current (ON), Fort Qu’Appelle (SK), High Prairie (AB), and Membertou (NS)—with a total investment of $4.8 million. These hubs offer expanded services such as Electric Vehicle (EV) charging stations, ATMs, MyMoney Loans, parcel lockers, business supplies, interactive directories, and community meeting spaces. Designed with accessibility and community input in mind, they also feature Indigenous artwork and cultural elements that reflect the identity of the communities they serve.

As of 2024, over 230 of the approximately 700 Indigenous communities in Canada have post offices or pick-and-drop locations located directly within their communities, and every Indigenous community has access to postal services. Canada Post continues to work with Indigenous leaders to identify underserved areas and close mail-service gaps. In 2024 alone, $885,000 was invested to improve services in 28 communities (the remaining funds were allocated to employee training, Indigenous procurement support, and other engagement activities), and at least $1 million every year has been invested since 2020.

These efforts are part of Canada Post’s broader mandate to deliver fair and equitable postal services to all Canadians, including those in remote and Indigenous communities. The transformation of Canada Post builds on this foundation, ensuring that service delivery continues to improve through community-driven approaches and infrastructure investments.

5. Canada Post Delivery Accommodation Program

Issue

The Canada Post Delivery Accommodation Program provides delivery solutions for residential customers with functional limitations, mobility issues, or health conditions that make it difficult to access their mail.

Key facts

Key messages

Background

The Delivery Accommodation Program was introduced in 2014. It is a national program that is an integral part of Canada Post’s efforts to provide accessible and inclusive services. When developing the Delivery Accommodation Program, Canada Post reviewed accommodation practices of other postal services and in other sectors, engaged expert advice and guidance, and met with a variety of groups that represented people with disabilities and older Canadians. The Canadian Human Rights Commission was also consulted and the Program’s approach and its adherence to Canadian human rights principles were endorsed.

The program offers:

In 2024, a five-year strategy was developed and approved for the Program. The strategy includes four key areas:

Customers of the Delivery Accommodation Program consistently identify as having multiple functional limitations with 87% identifying as having difficulties with mobility or agility. 79% of customers are over the age of 75 and 68 per cent are female. The Program assists customers in remaining connected to family, friends, and the world. It also delivers medication, medical supplies, and household essentials.

6. Canada Post Labour Relations

Issue

Canada Post and its largest union, the Canadian Union of Postal Workers (CUPW), have been engaged in negotiations for a new collective agreement, a process that has been ongoing since November 15, 2023. 

Key facts

Key messages

If pressed on back to work legislation:

Background

Canada Post is currently in collective bargaining with CUPW’s two bargaining units, having resolved or deferred bargaining with the other 3 agents, (i.e., Canadian Postmasters and Assistants Association, Association of Postal Officials of Canada and Public Service Alliance of Canada – Union of Postal Communications Employees).

As Minister responsible for Canada Post, the Minister of Government Transformation, Public Works and Procurement represents the Crown and acts as the shareholder of Canada Post on behalf of the government; however, Canada Post operates at arms length from the government, and is responsible for its own collective bargaining.

The Minister of Jobs and Families is responsible for the provision of dispute resolution services in support of collective bargaining for the federally regulated private sector, including Crown Corporations.

The two parties remain at an impasse, with each side claiming the other is not engaging in productive talks and both sides blaming each other for a lack of progress.

Current round of negotiations

On September 25, 2025, CUPW launched a national strike following the government announcement on Canada Post’s transformation. On October 3, 2025, Canada Post presented new global offers to CUPW.

As of October 14, 2025, Canada Post is experiencing ongoing rotating strikes, not a nationwide shutdown. CUPW ended a national strike on October 10 and shifted to targeted, rotating walkouts. The parties remain at an impasse.

7. Canada Post Corporation Financial Stability

Issue

Canada Post faces financial challenges due to structural issues, higher costs, and lower revenues given the ongoing decline in letter mail volumes and the need to operate in the increasingly competitive parcels market.

Key facts

Key messages

If pressed on the labour issue:

Background

Canada Post’s financial results reflect the impacts of the ongoing erosion of letter volumes, the increasingly competitive parcel market, and continued growth in addresses and delivery costs.

Purolator has consistently maintained annual profitability and provides dividend payments to Canada Post, which contribute to offsetting a portion of Canada Post’s financial losses in the fiscal framework.

In 2024, Canada Post reported a before tax loss of $841 million and a loss from operations of $1.287 billion. The 2024 postal strike, which occurred during one of the busiest and most profitable times of the year for Canada Post, had a net negative impact of $208 million in 2024. Canada Post’s 2024 losses were partially offset by the divestiture of two of its subsidiaries (SCI Group and Innovapost).

Canada Post reported a loss before tax of $407 million in the second quarter of 2025. This marks the Corporations largest loss before tax in a single quarter.

Canada Post’s 2025-2029 Corporate Plan Summary, which was tabled on May 28, 2025, is the first Canada Post corporate plan summary tabled in Parliament in six years.

Supporting Facts and Historical Figures

Table 2: Canada Post Earnings Before Tax (in millions)
2018 2019 2020 2021 2022 2023 2024 Q2-2025table 2 note 1 Total
-$276 -$153 -$779 -$490 -$548 -$748 -$841 -$448 -$4,283
Table 2 Note
Table 2 Note 1

Year to date

Return to table 2 note 1 referrer

Canada Post maintained a consistent record of annual profitability for almost every year up until 2017 and has paid the federal government $1.5 billion in taxes and dividends. Beginning in 2018, the organization has faced sustained financial challenges, resulting in consecutive annual losses in earnings before tax through to 2024.

Table 3: Domestic Lettermail (in millions)
  2018 2019 2020 2021 2022 2023 2024
Volumes 2,863 2,683 2,432 2,386 2,220 2,114 1,942
Revenues $2,601 $2,540 $2,335 $2,368 $2,296 $2,178 $2,092

In 2024, consumers represented just 5 percent of total lettermail volumes, while businesses accounted for the remaining 95 percent —with small businesses contributing 27 percent and large businesses 68 percent.

Table 4: Parcels (in millions)
  2018 2019 2020 2021 2022 2023 2024
Volumes 296 320 389 361 286 296 240
Revenues $2,503 $2,735 $3,434 $3,672 $3,573 $3,482 $2,799

Between 2018 and 2024, parcel volumes decreased by 19 percent.

Table 5: Stamp prices (price per stamp in a booklet of 10)
2018 2019 2020 2021 2022 2023 2024 2025
$0.85 $0.90 $0.92 $0.92 $0.92 $0.92 $0.99 $1.24
Table 6: Post offices
2018 2019 2020 2021 2022 2023 2024
6,137 6,084 6,026 5,941 5,873 5,789 5,716
Table 7: Number of addresses served (in millions)
2018 2019 2020 2021 2022 2023 2024
16.379 16.547 16.75 16.976 17.194 17.397 17.609

Since the peak mail year of 2006, the number of addresses Canada Post delivers to has risen by 3.3 million.

Table 8: Number of pieces of lettermail delivered per household
2018 2019 2020 2021 2022 2023 2024
181 168 149 144 133 124 113
Table 9: Employment
2018 2019 2020 2021 2022 2023 2024
64,912 65,891 68,153 68,447 67,763 68,318 62,315
Table 10: Purolator earnings before tax (in millions)
2018 2019 2020 2021 2022 2023 2024 Q2-2025table 10 note 1 Total
$161 $152 $176 $269 $317 $293 $294 $120 $1,782
Table 10 Note
Table 10 Note 1

Year to date

Return to table 10 note 1 referrer

8. Transcript Canada Post Announcement September 25, 2025

So, a few months ago, Canadians elected a new government and gave us a clear mandate. They asked us to reduce operating costs so as to ensure that essential services are sustainable. They asked us to be decisive and to lead in the best interest of Canadians.

Today, we’re doing just that by taking concrete actions to stabilize the financial situation at Canada Post and by taking steps to chart its future path because Canada Post is a vital, national institution, an institution older than our country and that has helped build it.

Because for 158 years and to this day, postal workers have connected Canadians rain or shine in small towns and in big cities, providing a lifeline to hundreds of northern, Indigenous and rural communities.

Because Canada Post is an institution worth saving and because at this junction in its history, it’s an institution that needs saving. To give you a sense of what I mean when I say it’s an institution that needs saving, since 2018 Canada Post has accumulated more than $5 billion in losses. Last year, in 2024, it operated at a loss of $1.3 billion and required an injection of $1 billion in January to keep it afloat.

In the second quarter of 2025, the Corporation lost $407 million, their worst quarter ever, and at present the Corporation is losing $10 million every day. In short, Canada Post is effectively insolvent, and it is facing an existential crisis.

Now, how did we get there? Well, 20 years ago, Canada Post delivered 5.5 billion letters per year. Today that number is 2 billion. And while the number of letters has dropped, the number of households has increased. Thus, Canada Post is delivering fewer letters to more addresses. Second, while letter mail volumes decline, Canadians have been sending and receiving more packages than ever before, but they are turning increasingly away from Canada Post and toward private competitors who are faster and more cost efficient. In 2019, Canada Post delivered 62 per cent of all parcels sent in Canada. Today it's less than 24 percent, a dramatic drop in just six years as its private competitors have gained ground with faster, more flexible and more competitive services.

Now, the third reason we got here is that government-imposed restrictions and a stalled relationship between management and labour have hindered Canada Post’s capacity to evolve and adapt.

So, the bottom line is this, Canada Post is effectively insolvent. It provides an essential service to Canadians and in particular to rural, remote and Indigenous communities, and Canadians are rightfully attached to it and want it saved. However, repeated bailouts from the Federal Government are not the solution. We must act and we must begin the transformation of Canada Post.

So, where do we go from here? In its report of May 15, the Industrial Inquiry Commission led by William Kaplan addressed these challenges and provided a path forward. And today, I’m announcing that we’re accepting all of the recommendations directed to the government by William Kaplan in its report and that we’re making the following changes to stabilize the financial situation at Canada Post.

I’m instructing Canada Post to introduce flexibilities in their delivery standards. The average household receives just two letters per week, yet operations are still designed for much higher volumes. Adjusting delivery standards will allow non urgent mail to travel by ground instead of air and will save more than $20 million a year to the Corporation.

Next, the government is removing the moratorium on the conversion to community mailboxes. Three quarters of Canadians already receive through community, apartment or rural mailboxes, while one quarter still receive door-to-door delivery. It’s an expensive service, and by way of example, delivering mail to an individual address costs the Corporation $279 a year whereas delivering mail to a community mailbox costs $157 a year. And 77 per cent of Canadians already receive mail through various forms of community boxes.

As such, I’m authorizing Canada Post to introduce community mailboxes to approximately four million more addresses, which will save the Corporation nearly $400 million per year in due term.

Now, as recommended in the Kaplan report, we’ll also be lifting the rural moratorium, and I’m instructing Canada Post to come back with a plan that will ensure protection of service in rural, remote and Indigenous communities. To give some context, the rural moratorium was imposed in 1994 and covers close to 4,000 locations. It has not evolved in 30 years, but Canada has changed.

This means that areas that used to be rural may now be suburban or even urban. It also means that multiple post offices operating near each other, including some just a few hundred metres apart, are required to stay open because of the moratorium. Lifting this moratorium will allow Canada Post to right size its network to adapt to today’s demographics, but I want to be clear, Canada Post has an obligation to serve all Canadians in every community in Canada, and that will not change.

Lastly, the government is reviewing the process for increases to the stamp rate to modernize and shorten it in line with Commissioner Kaplan’s recommendations. Taken together, these measures will help stabilize Canada Post’s financial situation by generating close to half a billion dollars a year. But there is more work to do.

As our government reviews its expenses so that we can spend less and invest more, I am asking Canada Post to do the same. In addition to the measures I’m announcing today, the Corporation must adapt. I am asking Canada Post to take immediate steps to address its financial challenges. That means finding efficiencies, reducing costs, reducing overhead, and I want to be clear, that also means reviewing and lightening its management structure.

This is a pivotal moment, not just for the Corporation but for Canadians who rely on it every, single day. Today’s announcement is about making sure Canada Post can meet this moment and continue to serve Canadians for generations to come. Canadians care about the future of Canada Post, and I know both workers and management share that same commitment.

I hope that in light of today’s announcement and the work ahead, both management and the union can return to the table with a renewed relationship and work toward a viable future. Canada Post is facing an existential crisis. It’s an institution that is worth saving, and we’re beginning the work today.

Thank you.

9. Question Period Exchanges related to Canada Post

October 7, 2025

Marilène Gill (BQ): Mr. Speaker, postal workers are saying the [inaudible] following the federal government's repeated interventions into our negotiations have completely ruined them. Each time the government interfered; it only made it harder to negotiate a new collective agreement. Each time the government has taken action, it's actually made the parties further apart. Mr. Speaker, Ottawa caused this conflict. Ottawa is responsible for the lack of postal services. Does the minister understand the harm that he has caused by dismantling this public service?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): I can't believe what I'm hearing, Mr. Speaker. We're not dismantling the public service, we are saving it. There has been a deficit in this service, and currently, Canada Post is losing $10 million a day, this labor conflict has been going on for 20 months. The responsible thing to do is to transform Canada Post and be able to bring back this vital service and make it viable.

Marie-Hélène Gaudreau (BQ): The minister loves telling us that that the strike at Canada Post goes back to last year, or that there was a strike last year as well. He keeps telling us that the government is losing $10 million a day, but what he's forgetting is that during last year's strike, small businesses criticized the government, sharply reminding them that the strike was causing losses of $10 million a day. Does the minister understand that by paralyzing our postal services, he is harming our small businesses, our regions, and the most vulnerable Canadians?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Mr. Speaker, I know that all parties involved care deeply about the financial viability of Canada Post. They lose $10 million a day. We don't think that's all right. What we're asking the union, what we're asking management, is to come to an agreement to ensure that an institution which is so important for the country finally finds a way to be financially sustainable. It's not acceptable for it to lose so much money, and taxpayers’ money.

October 6, 2025

Marie-Hélène Gaudreau (BQ): Mr. Speaker, the postal crisis is worsening, and this is fully the federal government's fault. On Friday, Canada Post submitted a new collective agreement offered to its workers, an offer that was worse than the previous one, which was rejected. Canada Post is taking advantage of the leverage that Ottawa gave it to intimidate its employees and forced them to back down. The minister keeps saying that both sides must negotiate, but by getting involved in this conflict he has poisoned the discussion, does he realize that its his fault.

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Thank you very much, Mr. Speaker. For us, Canada Post is a vital, essential institution that is part of [inaudible] that needs to be saved, why, because Canada Post is losing 10 million a day that Canadians need to pay for just to maintain its operations. That's acceptable for the bloc but it is not for us, we need to modernize the center of Canada Post and I have trust that both the management and the [inaudible] will be able to do the necessary actions to save it.

Marie-Hélène Gaudreau (BQ): before the liberals got involved, mail was being delivered, and since they got involved, the Postal Service has been completely paralyzed, and it's the regions, the small businesses, the most vulnerable, who are paying the price. Before the Liberals got involved, Canada Post was making serious offers, and now we've never been further from an agreement, and we don't see how the parties could reach one. This fiasco is the doing of the Liberal Party of Canada. Will the government acknowledge its full responsibility in the Canada Post crisis?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): I find this question absolutely surprising when I have these bloc members that have been saying for years that Canada Post has to be modernized. We've been waiting for 20 months and when the employees were striking last Christmas, they said that it was this action from this government that was causing issues and now we're used to the bloc living in this parallel universal they’re not recognizing that they’re losing 10 million a day. We need to modernize Canada Post and we expect both parties to reach an agreement.

October 3, 2025

Marilène Gill (BQ): Mr. Speaker, over the course of the week, the Prime Minister and the Minister of Labour have been asking Canada Post and the union to get back to the negotiating table to put an end to the general strike. But actually, Mr. Speaker, before this government got involved, there was no strike. Prior to this week, they were negotiating. The union was waiting for the employers to make an offer, and mail was being sent out and distributed. So when will this government recognize that they are the ones who are actually responsible for the Canada Post crisis?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Well, my colleague seems to have a short memory, Mr. Speaker, because if we recall the end of 2024 there was a Canada Post strike. This labour conflict has been going on for over a year. We need to do something about this organization, which is losing $10 million per day. That's $10 million per day that Canadian taxpayers are paying to keep the lights on at Canada Post. I know the members of the Bloc Quebecois have never had to think about balancing a budget. They have the benefit of not having to be serious. But actually, we are working in the benefit of all Canadians.

Marilène Gill (BQ): Well, Mr. Speaker, I hope the Minister is not always as arrogant as he's being right now. We're talking about 1000s of workers who may lose their jobs. It's remarkable that this government is asking both parties to get back to the negotiating table, when actually the government is the one that caused the problem. This is entirely the Liberals' fault. We all know that the Canada Post business model needs to be reformed, even if we're not the ones who balance the government's budget, but has this government taken two minutes to tell the union what it plans to do?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Mr. Speaker, I would like to remind my colleague that this labour conflict has been going on for 20 months. If we want to preserve this essential institution, we're going to need to bring in major reforms. Does the Bloc Quebecois really think that it's okay to lose $10 million a day? We don't think it's okay, and we don't think it's okay for Canadians. And in addition, many of my colleagues, the committee, and fellow committee members are asking for this to be done. We think that it's essential for the union, and the management of Canada Post to come to an agreement of the best interests of everyone.

Marianne Dandurand (LPC): Mr. Speaker, the government recently announced measures to reduce the bleeding at Canada Post, which is losing $10 million a day. So, I'd like to remind the crucial importance of these rural post offices for these communities in terms of maintaining the services and establishing the social linkages that are under the moratorium. Can the Minister of Government and Transformation reassure the people from my riding that the essential regions will be maintained and what measures will be taken so that the citizens are not deprived of these services?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Thank you very much. Mr. Speaker, I'd like to thank my colleague for the question and for the work she has done upstream to help the government transform Canada Post by making sure that the services are maintained in rural communities. That is fundamental. The objective here, Mr. Speaker, is to allow greater flexibility in the communities that are urban without affecting the services in rural parts of the country. And that is why, Mr. Speaker, I asked Canada Post for a plan to help preserve these regions in the government, across the country, and in rural parts of the country. We also have an adaptation program for senior citizens and people with reduced mobility.

October 2, 2025

Christine Normandin (BQ): A week ago, the Minister of Government Transformation announced the end of postal service as we know it. For example, the end of home delivery and the closure of postal offices. So of course, there's been a general strike from Canada Post because of the announcement that was not only the end of their work, but the result is now that passports and checks aren't being sent out, and some elections might have to be delayed. What did the Prime Minister expect from this?

Mark Carney (Right Honourable Prime Minister): This is the current situation and Canada Post is no longer viable. Every day it loses $10 million, we need reforms. We need to implement the policies detailed in the report, and we need an agreement between the corporation and the unions.

Christine Normandin (BQ): Mr. Speaker, the Liberals are so disconnected and so irresponsible that they didn't even realize that they were triggering a crisis. For 10 years, the government did nothing to modernize Canada Post. There were no real consultations or public debates about the future of this essential service, just silence and inaction. But now two [inaudible] Liberals suddenly woke up and they turned things upside down. They’ve deprived people of an essential service. How are they going to fix this?

Mark Carney (Right Honourable Prime Minister): Mr. Speaker, [inaudible] carried out a number of consultations with workers, with stakeholders, with Canada Post, with Canadians, with Quebecers, and detailed essential reforms for Canada Post. We need an agreement; we need to bring in appropriate reforms for all Canadians.

Marie-Hélène Gaudreau (BQ): Mr. Speaker, 1000s of postal workers are wondering if their [inaudible], as they were not consulted. 1000s of women and men are waiting for a check, a passport, or another important document, and they have no idea how they're going to get it. They were not consulted either. 1000s of businesses, especially SMEs, small businesses, that are wondering how their products can possibly be distributed, as they were not consulted either. Does the Prime Minister realize what a mess he's created?

Mark Carney (Right Honourable Prime Minister): Mr. Speaker, Canada Post provides an essential service to Canadians and Quebecers, but we need a sustainable system. It's not acceptable to see Canada Post lose $10 million day over day taxpayer money that belongs to Canadians and Quebecers. That's unacceptable and we need a real solution.

October 1, 2025

Yves-Francois Blanchet (BQ): Mr. Speaker, the Government has just interfered in an already very complex negotiation within Canada Post. I can only call that provocation in the context of an already very complicated conflict. The Government is adding to the uncertainty that is being felt by many families, not just workers families. It is creating uncertainty in various towns in Quebec regions, and I expect that's in Canada as well. It's also causing a regional alarm to Seniors. So let me get this clear, what's the (inaudible) Postal service?

Mark Carney (Right Honourable Prime Minister): Mr. Speaker, the Postal service is an essential service. We need a viable Postal service. Currently, the situation is difficult. Canada Post is losing millions of dollars. We need to take action and we need to restructure.

Yves-Francois Blanchet (BQ): Mr. Speaker, if Quebecers and Canadians had wanted to have Conservative party in power, they would have voted for the Conservative party. The Liberals’ fiscal, climate, and oil strategies are basically Conservative strategies. Same thing with these austerity strategies. Will the Prime Minister put an end to his law (inaudible) strategy, and instead bring in serious experts to reform a Postal service that does, in fact need reform?

Mark Carney (Right Honourable Prime Minister): Mr. Speaker, it is Canada Post and the Union's responsibility to find a solution between themselves. However, in this context, we need more flexibility for Canada Post in a manner that is consistent with the report.

Marie-Hélène Gaudreau (BQ): Mr. Speaker, this Government has caused the postal crisis. It announced its’ Canada Post reform without telling workers; who had to learn it in the news, and now nobody's giving their mail. Some people are not able to get their paychecks, or have to have to go elsewhere to get them. Businesses are having to improvise to deliver packages and (inaudible), concerned that people won't get their ballot to vote in the Municipal elections. All because the Minister improvised and didn't consult anyone. What was the Minister really expecting?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): I'd like to thank my colleague for the question, but I'd like to set things straight. This conflict has been going on for 20 months. The Union was on strike. In 2024, I wasn't the Minister yet. So when she says that we did not have any consultations, what we're doing is actually bringing in the recommendations of the report that looked at Canada Post finances. We are being (inaudible). We are bringing in sensible strategies to ensure that while Canada Post is losing million dollars every day, we cannot wait any longer.

Leah Gazan (NDP): Mr. Speaker, the Liberal government is siding with Canada Post executives to help privatize the Postal service. What does that mean, Mr. Speaker? Cuts to services for Seniors, the disability community and rural areas, while attacking good paying union jobs. Well today, Mr. Speaker, postal workers said no more; by rallying on Parliament Hill to tell the Prime Minister no more cuts to Canada Post. Why don’t the Minister actually do his job, protect public services and stop attacking workers?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): To the contrary Mr. Speaker, we know full well that Canada Post is an essential institution to the fabric of our nation that we're taking the necessary steps to put it on a path to financial viability. Mr. Speaker, it is an institution worth saving, it's an institution at this time that needs saving, and is losing $10 million a day. It needs to modernize. This is why we're taking the steps to make sure that we provide service all across the country.

September 26, 2025

Alexis Deschênes (BQ): Madam Speaker, the role of a minister is to bring different interests together in order to find solutions. But the minister did the exact opposite in the Canada Post labour dispute, he dropped an atomic bomb and on [inaudible] negotiations by making major changes to Canada Post without consultation and without even bothering to inform the workers. The result is that today, there is a general strike. No one is receiving their mail. Yet again, small, and medium enterprises have to rethink their operations. Seemingly overnight, all Canadians are being let down. What is the Minister doing to fix this mess?

Steven MacKinnon (Minister of Transport and Leader of the Government in the House of Commons): It is indeed sad that the two parties were not able to reach agreement. Despite intense mediation, which has been ongoing for two years, there was an industrial inquiry which prepared a plan to reform Canada Post. They produced a map for reform, and the reform would make Canada Post profitable again and guarantee their long-term success. I encourage both parties to reach an agreement that the government needs to move forward. We can [inaudible] continue to have millions, billions of dollars of losses from Canada Post.

Alexis Deschênes (BQ): Madam Speaker, Quebecers in rural areas are concerned about Canada Post's reforms, because for people in rural areas, it means cutting services. Yesterday's announcement about ending the moratorium on rural post office closures is seen as abandonment, also the end of home delivery outside major centers, especially in winter, is very bad news for people with reduced mobility. What will the government do to guarantee [inaudible] in rural areas will not suffer any loss of services?

Steven MacKinnon (Minister of Transport and Leader of the Government in the House of Commons): Yesterday, the colleague talked about how important it is to guarantee service in rural ridings, remote ridings, and Indigenous ridings. We need to protect those services, and that's why the minister has taken action. Taxpayers cannot pay over a billion a year in Canada Post deficits. Meanwhile, we have put Canada Post on a lasting path, and I hope both parties will reach an agreement.

Marilène Gill (BQ): Madam Speaker, postal services are an essential service, especially in rural areas where even the delivery of medicine is at stake, but today, no one is receiving their mail because the Prime Minister caused a general strike at Canada Post in the middle of negotiations while both sides, including workers, were considering solutions for the future of Canada Post. Ottawa killed the negotiations by announcing a reform without having consulted anyone. If conservatives had done so, the minister would have been the first to denounce it. What will the minister do today to restore [inaudible]?

Steven MacKinnon (Minister of Transport and Leader of the Government in the House of Commons): Well, currently, federal services are available to help both parties remain on track to reach agreement together. I'd like to remind my colleague that over a billion in losses at Canada Post Corporation is not sustainable. That can't go on long term. A billion dollars can build countless homes. It can hire many nurses, for instance, in remote areas. Madam Speaker, the government needs to act to ensure that Canada Post arranged [inaudible].

Jenny Kwan (NDP): Liberals abruptly announced that they will [inaudible] to more mail delivery. The elderly, rural, remote, and Indigenous communities will have a hard time accessing their mail. Those who work nine to five will have to take time off work to get their mail. There's a better way forward. Instead of tearing down Canada Post, Will the minister build them up by reintroducing postal banking, building an electric vehicle charging network, expand its infrastructure by creating a community hub of services like high-speed internet, computer access, video conferencing and E-commerce support? Will the minister do the right thing?

Jenna Sudds (Parliamentary Secretary to the Minister of Government Transformation, Public Works and Procurement and to the Secretary of State (Defence Procurement)): Madam Speaker, Canada Post is in deep financial difficulty, and our government is clear that endless government bailouts are not the answer. We've already stepped in with significant support, but without [inaudible] reform. The future of this public service and the jobs that depend on it are at risk. Our government has directed Canada Post to take concrete steps. These changes will put Canada Post on a more stable footing, ensuring that it continues to serve Canadians well.

September 25, 2025

Christine Normandin (BQ): Mr. Speaker, Postal Service is an essential service that the federal government's [inaudible] improved reform, rather, Canada Post completely overlooks this and overlooks 1000s of Quebecers. There are seniors who need to get their mail at home, especially those who live in rural areas. There are also people with disabilities who are concerned. Can the government guarantee to all Quebecers that they will continue to receive the door-to-door services they deserve?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Thank you very much, Mr. Speaker, I'd like to thank my colleague for her question. I agree with her fully that mail is an essential service for Canadians from coast to coast, and that's why we're bringing in reforms that will make Canada Post viable in the long run. When it comes to community postal boxes, there's a service that adapts for the service for older Canadians and for disabled Canadians. We want to make sure that all Canadians still have access to their mail while preserving and protecting the viability long term of Canada Post.

Christine Normandin (BQ): The regions are also being abandoned in the federal government's slip shot. The reform of Canada Post announced today is ending the [inaudible] driving on the closure of rural postal offices, a 30 year setback. However, in remote areas, people depend on Canada Post, particularly for the delivery of medication. We absolutely can't cut back on services in rural areas when that's the only service available. Will the government ensure that [inaudible] in the regions are not abandoned?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Thank you, Mr. Speaker, the short answer is yes, we are going to make sure that all Quebecers and all Canadians in rural and remote areas, and Indigenous communities, have access to Canada Post. That's a priority for our government and the community boxes were created in the 90s. Many of those areas have now become suburban, but we will certainly preserve service to rural and remote areas.

Marie-Hélène Gaudreau (BQ): Mr. Speaker, modernizing Canada Post must not mean abandoning Quebecers in rural areas and people with disabilities. The Minister didn't adequately consult Quebecers, and now he's presenting what looks like a sweeping federal reform that doesn't take into account the specific needs on the [inaudible]. He must ensure that people with reduced mobility will continue to get their mail at home just as quickly, and there must be no reduction in services in the regions. Will he make that commitment?

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Mr. Speaker, currently in Canada, 67% of Canadians get their mail through community mailbox. There are 4 million addresses that need to be transferred to community mailboxes, but during the transition we will ensure that Canadians with reduced mobility have access to mail services if they can't get to a community box. It’s time to act, to save Canada Post.

September 18, 2025

Heather Mcpherson (NDP): Mr. Speaker, postal workers are the backbone of our communities. They deliver prescriptions, they deliver checks, and they deliver vital communications. They can expand services as well, to include things like postal banking and seniors check ins. Yet, instead of supporting the workers and allowing them to bargain, the Liberal government has chosen to fight with over 65,000 workers. They've used Section 107 to suspend postal workers' legal rights to strike. Why is the Government siding with Canada Post instead of standing up for fair wages, safe workplaces and a stronger (inaudible).

Joël Lightbound (Minister of Government Transformation, Public Services and Procurement): Mr. Speaker, Canada Post is a vital national institution for this country. They provide service to many remote and rural communities, and I commend the workers on their work. It's been 158 years that Canada Post has been doing their good work, and I hope both parties will reach an agreement.

November 29, 2024

Matthew Green (NDP): Madam Speaker, this government has once again allowed its Crown Corporation to walk all over workers. Not only did Canada Post illegally lay off striking workers, they also cut off the medical benefits for people like Mark [inaudible], who has cancer and now has to pay 1000s of dollars for medication. This is despicable, it's intimidation, and it's a violation of workers' fundamental right to strike. So what does this minister have to say to Mark [inaudible] and the 1000s of workers who've been abused by Canada Post and this liberal government.

Terry Sheehan (Parliamentary Secretary to the Minister of Labour and Seniors): Thank you very much, Madam Speaker, on this side of the house, we know that the best deals are always made at the bargaining table. The special mediator has suspended mediation services, and the minister has asked both parties to go and create new proposals that will work and get back to the bargaining table because Canadians are expecting them come back and make a deal that works for all. Thank you very much.

June 19, 2024

Yves-François Blanchet (BQ): Mr Speaker, in Quebec, according to Canada Post, you don't actually need to speak French to deliver mail or to sort it. They say that that mail delivery people don't talk to anyone. Apparently they don't chat with their colleagues at work. Apparently they don't chat with people they're delivering mail to. Will the Prime Minister ask Canada, Canada Post to insist that its employees in Quebec actually speak French.

Rt. Hon. Justin Trudeau (LPC): Mr Speaker, our government has always been there to defend official languages in Canada, and in fact, we were the first federal government to recognize that we have a specific responsibility to protect French, including in Quebec, and that's why we will continue to ensure that the Official Languages Act is respected throughout the country, including in federal institutions like Canada Post. We will follow up on this issue, because it is important to ensure that we're always standing up for our two official languages everywhere in Canada.

June 18, 2024

Julie Vignola (BQ): Yet another federal failure with the French language. Canada post hired unilingual letter carriers. They claim it's not necessary to speak French to deliver mail. Let remind them that in Quebec French is a language of work. We won't accept Canada post doing this in the workplace of all its Quebec employees. Further of proof that the charter of the French language should prevail. Knowledge of French in Quebec is essential. Will the minister immediately bring Canada post back in line?

Jean-Yves Duclos (LPC): Thank you, Mr. Speaker. I thank my colleague for giving me the opportunity to remind this house that all federal institutions, including Crown corporations, including Canada post, must follow the official languages act of the government of Canada. And the goods is that this act was strengthened in recent years. For the first time in the country's history it recognizes and the government of Canada recognizes that we must defend French all over Canada. But in particular, in Quebec. That is the responsibility of all, and it's the responsibility of the government of Canada. With a plan with billions of dollars the to help community throughout the country.

Mario Beaulieu (BQ): By hiring unilingual anglophones, Canada post is calling into question he the right to work in French for all it's Quebec employees. It's a test for the reform of the official languages act. Remember, the liberals and Quebec reached a comprise that doesn't federal corporations to comply with the charter of the French language. Canada post is using this comprise in the workplaces. Does the minister realize that this proves once again, despite the reform, the official languages act continues to foster the anglicization of Quebec.

Jean-Yves Duclos (LPC): On the contrary, Mr. Speaker. The new official languages act for the first time in the country's history recognizes that French is in peril in Quebec question. That it must be defended throughout the country. But in particular in Quebec. I've already answered this question by clearly indicating that all Crown corporation cans are subject to the same treatment. Since I have a few second left, thank you on behalf of all members to the most recent cohort of pages who will soon be leaving us, for the extraordinary service they've provided over the past year.

Committee exchanges related to Canada Post

Please see below excerpts related to Canada Post from committees. Please note that recent exchanges have exclusively focused on the establishment of committee studies related to Canada Post, and are largely administrative in nature.

OGGO: June 19, 2025

On motion of Kelly Block, it was agreed,—That given that committee members, staff, the clerk, analysts and witnesses worked hard to produce the report entitled “Canada’s Postal Service: A Lifeline for Rural and Remote Communities” during the 44th Parliament, and given that the government did not table a response owing to the prorogation of Parliament, the committee deemed that it had undertaken and completed a study on “Canada’s Postal Service: A Lifeline for Rural and Remote Communities” pursuant to Standing Order 108, and that it adopt that report as a report from this committee; that, pursuant to Standing Order 109, the committee request that the government table a comprehensive response to the report; that supplementary or dissenting opinions that accompanied the report in the previous session of Parliament be tabled with the report.

ORDERED,—That the Chair present the report to the House.

OGGO: Tuesday September 23, 2025

That the committee conduct a study on the situation at Canada Post, with the first two meetings to be held in October, and with the President of the Canada Post Corporation being invited to appear, provided that the committee ask the parties to provide lists of suggested witnesses by a date to be determined by the committee;

OGGO: Thursday October 2, 2025

Chair: Quickly, everyone, we had invited the president of Canada Post to come in for, as we said, October 9, as part of our study. This of course was all done before the changes and the current labour dispute, so they quite understandably have said that they are unavailable and would like to be considered for a future time down the road. I'm just letting you know that we won't continue with them or do that.

We had previously asked the public sector integrity commissioner to attend. She's now back in the country and we have taken the liberty of starting the process to invite her in for October 9. That's kind of pushing back other changes, and again, depending on what's going on with the labour dispute, we'll have to address the president of Canada Post coming later for that time. This happened about a year ago, I think, when we invited him and then the strike happened. It appears that maybe OGGO inviting him is what triggers the strikes. I apologize to Canada.

Marie-Hélène Gaudreau (Laurentides—Labelle, BQ):

We understand the situation, Mr. Chair.

Obviously, a lot of things changed on September 25. I think the Minister of Government Transformation, Public Works and Procurement needs to be summoned for a two-hour meeting so that he can answer our questions as soon as possible. This is urgent.

Chair: Right. We had invited the minister, but our indication is that it may be not for a while. Are you pushing a motion to have him appear sooner at the request of the committee, to have him appear sooner than he was intending, in November?

Marie-Hélène Gaudreau (BQ): I would like the Minister of Government Transformation, Public Works and Procurement, Mr. Lightbound, to appear before our committee as soon as possible.

There's a break in sight, we have a lot of questions to ask him, and we're in a period of crisis. It's important that he come and meet with us.

Pauline Rochefort (Nipissing—Timiskaming, Lib.): I was just going to say, given the concern you've raised, or given what my colleague just asked, could we do this in camera?

Chair: We do not do anything in camera in this committee unless it's specifically confidential information or reports. You can request.... I don't see a will from one side of the room. We could do a vote, but I don't see that happening, Ms. Rochefort.

I did see some nods about requesting that he come earlier. Can we consider that a motion by the committee to invite him to appear preferably in the next week or, if not, in the first week after break week? If he can appear next week, we can move back.... We'll make our time on Tuesday available. Instead of doing the Consul General (CG) report, we can move the CG report to Thursday if we can get Minister Lightbound on Tuesday. If not, we'll try for Thursday, in which case we can move the public sector integrity commissioner to perhaps Tuesday for now, or we can finish off our report on Tuesday.

Perhaps it's something you can leave with the clerk and me to balance out.

Kelly Block (Carlton Trail—Eagle Creek, CPC): I have just one point of clarification, Mr. Chair. I understand my colleague's sense of urgency that she is expressing in regard to wanting to see the minister appear before the committee. Notwithstanding the very current issues, I'm wondering if we could just open it up for questions around his mandate. It may mean that he doesn't need to come back again a few short weeks later to appear in the spirit of the initial invitation we sent.

The Chair: Yes. Thanks. I think that was the intent. Rather than having it delayed to November, it's to have him kill two birds with one stone, or to do his meeting with us for two hours. Then he would not be back until the estimates, in which case we usually invite them for one hour with the estimates, which would be in late November or December. I think that's the understanding. Are we comfortable with that?

10. Government response to the first report of the Standing Committee on Government Operations and Estimates entitled Canada's Postal Service: A Lifeline for Rural and Remote Communities

Mr. Kelly McCauley, M.P.
Chair
Standing Committee on Government Operations and Estimates
House of Commons
Ottawa, Ontario K1A 0A6

Dear Mr. McCauley:

Pursuant to Standing Order 109 of the House of Commons, I am pleased to respond, on behalf of the Government of Canada, to the report of the Standing Committee on Government Operations and Estimates (the Committee) titled Canada’s Postal Service: A Lifeline for Rural and Remote Communities (the report), tabled in the House of Commons on June 20, 2025.

The Government of Canada extends its sincere appreciation to the members of the Committee for their thorough work and for providing, in their detailed report, thoughtful recommendations on an issue of great relevance to Canadians—especially those living in rural and remote communities.

The Government has carefully reviewed the report, and the response contained herein highlights the measures that the Government of Canada has undertaken to begin transforming Canada Post. The overall goal of this transformation is to put the Crown corporation on a path to financial self‑sufficiency while ensuring that it continues to provide quality postal services to all Canadians.

On December 16, 2024, the former minister of Labour, the Honourable Steven MacKinnon, appointed Mr. William Kaplan to lead the Industrial Inquiry Commission into Canada Post. The Commission was tasked with examining the collective‑bargaining dispute—particularly the underlying causes of the dispute—as well as assessing Canada Post’s financial situation and the viability of the corporation. Mr. Kaplan’s report, published in May 2025, found Canada Post to be effectively insolvent and made seven recommendations to set a path forward, through structural reforms, to preserve this national institution.

On September 25, 2025, I announced that the Government of Canada is moving forward with the Commission’s recommendations within its control. I instructed Canada Post to implement a series of measures to stabilize the corporation’s finances and enable it to modernize its operations, including to:

In addition, as part of the September 25 announcement, I further instructed Canada Post to submit a plan for my approval within 45 days, outlining additional proposals that would place the corporation on the path to financial sustainability. There is a clear need to make operations more efficient, particularly in urban areas, while maintaining critical services and appropriate protections for rural, remote and Indigenous communities. In this vein, I will give careful consideration to the Committee’s recommendations as I review the plan that Canada Post submits.

Furthermore, as recommended by Mr. Kaplan, the Government is reviewing the time‑consuming regulatory approval process for stamp rate increases.

The Government of Canada recognizes that transforming an organization of the size, scope and scale of Canada Post will take time. As this first wave of reform unfolds, in line with the Committee’s recommendations, the Government will examine additional governance and structural reforms—including the Canadian Postal Service Charter, Canada Post’s legislated mandate, its regulatory framework and its funding model (including for rural post offices). Canadians deserve a service that is reliable, affordable and sustainable, and the changes that were announced are the first step toward securing that future.

Lastly, in alignment with the Committee’s first recommendation regarding the timely approval of corporate plans, [Redacted]. The Plan’s summary was subsequently tabled in Parliament on May 28, 2025. The Government will endeavour to ensure that future plans continue to be approved and tabled on a timely basis.

In closing, I would like to reiterate the Government’s gratitude to the members of the Committee for their diligence, meticulous work and dedication to advancing policies that improve the quality of services provided to Canadians.

Yours sincerely,

The Honourable Joël Lightbound, P.C., M.P.

Minister of Government Transformation, Public Works and Procurement

11. Report of the Industrial Inquiry Commission

Issue

Report of the Industrial Inquiry Commission (Kaplan) from May 15, 2025 on Canada Post.

Key facts

Key messages

Background

The Industrial Inquiry Commission (IIC) concluded that Canada Post’s financial crisis is real, that the corporation is effectively insolvent and that its business model is no longer viable. The IIC affirmed that Canada Post’s universal service obligation should continue but warned that preserving this public service will require significant investment. 

The key IIC recommendations that could be actioned by the government include:

Other IIC recommendations involve changes to collective agreements. These need to be negotiated by the parties and are not under the purview of the government:

Even if the IIC recommendations are implemented, Mr. Kaplan noted that they will be insufficient to address Canada Post’s financial challenges.

Recommendations

  1. Amend the Postal Charter. It cannot continue to require impossible-to-meet delivery standards. Daily door-to-door letter mail delivery for individual addresses should be phased out and community mailboxes established wherever practicable. Daily delivery to businesses should be maintained
  2. The moratoriums on rural post office closures and community mailbox conversions should be lifted. There is no persuasive case for a moratorium on closure of once rural, now urban, post offices. Canada Post already has the Delivery Accommodation Program in place for Canadians who cannot access community mailboxes. It should be reviewed and, if need be, enhanced, and it should continue
  3. Include in the two collective agreements all items agreed to in collective bargaining prior to the labour dispute. Parties should attempt to narrow differences in all partially agreed-upon items. New collective agreements should include and reflect tentative agreements (subject to agreement as a whole) reached in Commission-facilitated mediation (Rural and Suburban Mail Carriers [RSMC] and Short-Term Disability Program [STDP])
  4. Negotiate changes to the collective agreements. Canada Post must have the flexibility to hire part-time employees working part-time hours to deliver parcels on the weekend and to assist with volume during the week. These employees should be paid the same rates and be subject to the same terms and conditions as regular employees, including access to pro rata benefits, or payments in lieu, and pension. Priority for these positions should be given to existing employees
  5. Negotiate changes to the Urban collective agreement. There is no justification for collective agreement provisions that preclude an employer from assigning work for hours already paid (except by voluntary overtime)
  6. Negotiate changes to the collective agreements. Pilot and then introduce dynamic routing. Canada Post must also be able to change routes daily to reflect volumes to avoid trapped time and overtime
  7. Amend the time-consuming approval process for postage increases

Page details

2026-02-19