Drastic Cuts to Canada Post Demonstrate Lack of Imagination

TORONTO, ONTARIO--(Marketwired - Dec. 11, 2013) - Ontario Federation of Labour (OFL) President Sid Ryan expressed concerns that cuts and rate hikes announced by Canada Post today will have a negative impact on average Canadians and set the crown corporation on a dangerous and misguided path forward.

"The plan to eliminate door-to-door mail delivery by 2019 and hike up stamp prices is in line with the Harper government's devastating across the board cuts to public services and social supports that Canadians rely on," said OFL President, Sid Ryan. "It is disheartening to see this Conservative government continue to strip away the services we all value without considering the real costs to our communities."

Seniors and persons with disabilities will be most affected by changes that make the postal service less accessible, while people with low-incomes will bear the brunt of rising costs. The announced cuts are also expected to lead to the loss of between 6,000 and 8,000 jobs in the next five years.

"These changes are short-sighted and demonstrate a real lack of imagination," said OFL Executive Vice-President, Irwin Nanda. "In other countries postal operators are innovating to address changing needs and with bold leadership we could be doing the same in Canada."

Recent research from the Canadian Centre for Policy Alternatives shows that, for example, postal banking provides a great opportunity to expand the services provided by Canada Post and secure its financial future. The Canadian Union for Postal Workers has also been encouraging the postal service to consider this option, which has proven successful in other parts of the world.

"No one would deny that the services provided by Canada Post must adapt to the changing needs of Canadians, but drastic cuts to services don't serve anyone," said Nanda. "We need a visionary long-term plan for the postal service that ensures financial sustainability, while prioritizing good jobs and quality services."

The Ontario Federation of Labour (OFL) represents 54 unions and one million workers in Ontario. For information, visit www.OFL.ca and follow the OFL on Facebook: www.Facebook.com/OFLabour and Twitter: @OFLabour and follow OFL President Sid Ryan at @SidRyan_OFL.