Canada Post

[G-Man]

I think that we all agree that the cost of shipping is a hindrance to buying and selling on eBay and other sites. And the cost of shipping across the U.S./Canadian border is even more so.

A number of members of this forum have routinely criticized Canada Post for their high rates, however, please review the story below to gain a different perspective as to why these rates are no longer being subsidized.

•    http://www.nbcnews.com/business/canada-phase-out-home-postal-delivery-stem-losses-2D11728643
"Canada to phase out home postal delivery to stem losses
14 hours ago
The Associated Press

Canada's postal service will phase out urban home delivery within five years and raise the cost of postage stamps to try to stem soaring losses.

TORONTO — Canada's postal service said Wednesday it will phase out home delivery in urban centers within the next five years, facing continued financial losses as Canadians send less mail and go online instead.

Canada Post, a government corporation, said it will replace foot delivery with community mail boxes. About a third of Canadian homes still receive mail to their door.
A Conference Board of Canada study estimated savings of $542 million ($576 million Canadian) a year by eliminating door-to-door delivery to urban homes.
It also plans to eliminate 6,000 to 8,000 jobs during the next five years, mainly through attrition. The postal service expects nearly 15,000 employees to retire or leave the company in the next five years. Canada Post employed 68,000 at the end of the 2012 fiscal year.
The company's core mail operations have been losing hundreds of millions of dollars per quarter for several quarters in a row.

Canada Post said if left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers.
"What Canadians expect from their postal system is changing dramatically. That requires an equally dramatic change in the size, structure and direction of Canada Post," it said in a report. "Future success will require a leaner workforce, more competitive wages and benefits and greater flexibility."

The U.S. Postal Service has also struggled in the past few years. It has waited for years for legislators to pass a bill to fix its ailing finances. In fiscal 2013, it had a $5 billion loss, ending in the red for the seventh year.

Last month, Canada Post announced that it would ask the Canadian government for financial relief next year to help support a restructuring of its business model and pension plan framework to assure long-term financial sustainability. In addition to service changes, the post is increasing the price of stamps.
The postal service has faced intense competition from couriers, as well as technology that has led to a growing popularity of consumers paying their bills and communicating online.
Transport Minister Lisa Raitt, the minister responsible for the corporation, said Canadians are sending less mail than ever, leaving Canada Post with some tough financial decisions in order to combat a steep decline in revenues.

In the third quarter, Canada Post reported an improved, but still big, pre-tax loss of $102 million ($109 million Canadian) for the period ended Sept. 28. The pre-tax loss in the comparable period a year ago was $136 million ($145 million Canadian).

Canada Post said the rollout of a new five-point action plan will return Canada Post to "financial sustainability" by 2019.

A think-tank commissioned by Canada Post earlier this year warned that the postal service was on track to lose $1 billion annually by the end of this decade."

[DavePEI]

One should point out that Canada Post's rates have not been subsidized at all for a good many years. That is why Canadian postal rates have been more expensive that USPS. It was self supporting until the last 3 years, and in fact was paying back previous subsidies to government from the period before 1987 on an annual basis.

It is only the reduced use of the post which is driving the current reductions, and a very expensive modernization of the post to eliminate hand sortation of both letters and parcels.

Our Saturday deliveries went many years ago in the 70s or very early 80s to reduce cost of operations.

Dave (Canada Post Retired)

[twocvbloke]

I can foresee higher rates of "lost" post with centralised community PO boxes, with the way some people are, there may be many a busted lock on these boxes if they're not kept somewhere safe....

[DavePEI]

I can foresee higher rates of "lost" post with centralised community PO boxes, with the way some people are, there may be many a busted lock on these boxes if they're not kept somewhere safe....

Actually, the community boxes are quite secure. I have seen them hit by cars and trucks and not busted open. The locks are made by Medeco and are some of the hardest locks to pick in the world. However, therein lies one of the problems. Only one key is given to each customer. Should they lose that key, there is a hefty charge for replacing the lock, and in winter weather, they are known to freeze up. Now, in that case, it is the Post Office's responsibility to come out and unfreeze them. They are located in well lighted areas,  and in theory, at least, kept cleared of snow.

I am not defending lock boxes - the major problem is disabled and elderly people often have to travel a long distance to get to their lock box, whereas before they had delivery to the door. For the younger, more able generations, it is less of a problem to have to go a mile or two to pick up their mail.

Dave

[Bridie]

Community boxes won't be such a big deal as long as they are in easily-accessible areas on bus routes for those of us with no car.  I recall first seeing community mailboxes years ago when new subdivisions begin springing up outside Halifax.  I heard this morning stamps are going up to $1 

[twocvbloke]

I heard this morning stamps are going up to $1 

About the same price as our 1st class letter stamps here in the UK...