Restructuring on the increase: Canada Post to cut 8000 jobs

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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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  • sarah gayer on 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!!!!!

  • Julie on 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.

  • Bob on 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!

  • sarah gayer on 2013-12-11 11:46:35 AM

    By increasing over 35% the cost of a stamp it certainly will drive away customers. Why not look for more efficiences and how to better use technology. Maybe what other kind of services or businesses Canada Post can go into? What about partnerships in certain areas? Too little to late I am sorry. The British Government has put their postal services up for sale. Now that is a thought? Maybe Amazon will buy ours???

  • Tom from Burnaby BC on 2013-12-12 10:04:06 AM

    CPC has had its problems like any other canadian corporation by not funding employee pension plans as required and using the excess money earned in the good years on corporate investment that brought in little or no returns to the federal government coffers- And we the people of canada are the big losers as usual.

  • Jean on 2013-12-14 12:58:16 PM

    I also take exception with some of the comments. I also have worked for in the finance department of CPC. What you have to remember is that 8,000 jobs mean that these jobs will not be available in the future. Lost jobs mean have a devasting spin-off affect.
    I do not eat Kellogg's products, nor do I eat ketchup, but I do feel for these people who no longer have jobs. Using the term mis-management to justify getting rid of 8,000 jobs is just a sad 'copout'.

  • Tom from Burnaby BC on 2013-12-16 10:10:54 AM

    As mentioned in a Ralph Nader books on Canada, Canadians are so polite and take so much, claims he never saw one get mad.

    People it is time to get MAD and get the hell out and vote (not 30% but 100%)for political parties across Canada that care about the people and actually look out for the people the way a family should.

    Until we all get out and have a real election vote happening we will see all kinds of political fallout just to save a buck to put it in a corporations pocket in Canada or abroad.

  • Joanne on 2013-12-11 11:10:23 AM

    I just found out that the price of stamps as of March 2014 will be $1.00 each or 85 cents if you buy by the booklet. Today the stamp is 63 cents so a huge increase (I remember a time it went up 5 cents each year). So losing 8000 workers should not be a problem as fewer and fewer people will use the mail to send items, so fewer staff needed. I know that I will start sending electronic cards rather that pay between $6-$8 for a card then $1 for a stamp. Goodbye Canada Post.

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