Restructuring on the increase: Canada Post to cut 8000 jobs

Restructuring on the increase: Canada Post to cut 8000 jobs

Restructuring on the increase: Canada Post to cut 8000 jobs

Canada Post outlined vast organizational changes Wednesday that could see as many as 8,000 jobs lost over the next five years.

The Crown corporation is hoping to save almost $1 billion a year with changes to home delivery, increased pricing on stamps and streamlining of its operations.

Labour savings are likely to play a big role in containing costs, with a significant cut to the number of letter carriers. Still, Canada Post suggests normal attrition will make up most of the reduction as employees voluntarily leave the organization.

The announcement comes on top of a range of high-profile factory closures and labour reductions from companies such as Sears, Potash Corp, Kellogg’s and Heinz.

 

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8 Comments
  • sarah gayer 2013-12-11 10:11:12 AM
    Canada Post has had many year sin which to restructure itself and it chose not too. How long has technology and the internet been around? They had not changed their business model and now they are being forced too. A private company would have restructured several times by now knowing that most bills are paid on line, email is cheaper and faster way to send information than a letter and the ''preferences have changed. To hear that they have such a hugh unfunded pension liability really scares me as a tax payer. Where is the money going to come from to fund the pension plan? We the tax payer will be on the hook to fund this pension plan. Has Canada Post been on a contribution holiday or just poor management of the pension plan? there are a lot of questions and the answers do not look good for the employees and we the Canadian public. Another mismanaged crown corporation!!!!!
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  • Julie 2013-12-11 10:24:26 AM
    Having worked at CPC for 19 years in senior finance roles... I take exception with Sarah's comment re: CPC being a mismanaged crown corp. I now work for a Big 4 consulting firm and can tell you that in comparison with many public sector entities, CPC is head and shoulders above in terms of management, business practices and innovative ideas

    You have to remember that public sector companies are often very restricted in the extent that they can restructure, due to collective agreements and political influence on their mandate. Remember the feds are the shareholder and if the shareholder does not have the desire to move in a certain direction (eg: closing rural post offices, consolidating operations in urban centres) then there is only so much that can be accomplished.
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  • Bob 2013-12-11 10:53:25 AM
    I cut my gums with CPC in their Human Resources and Labour Relations departments. Notwithstanding the technology they have been inefficient for years and now deliver a fraction to my house from what they deliverred 10 years ago. Their union relations is texbook terrible and today the announcement is receiving venimous coments from their union leaders. Frankly 5 day delivery is not required and frankly working 5 straight days doing that work is unsafe. Industries such as Hotels have learnt that physical labour (housekeeping) is best maxed out at 4 days. CPC WCB costs and low productivity would make 4 day delivery productive and safer for their employees. I do not wish to subsidize my local deliver; I'll help out northern and remote communities. In closing CMB are ugly and often unattractive, keep delivery to my door but do it 4 days a week. One more thing ... I often thank CPC for the experience they gave me!
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