May 11, 2009

The US and Canadian Postal Services: Running Running Low on Cash

With today's economic downturn, the USPS raising postage fees today and considering cutting its Saturday service. But in Canada, with roughly a tenth the population as the U.S. spread out over 138,000 square miles more than the US, there are recently released recommendations by an outside review headed by Mount Allison President Robert Campbell that urges Canada Post to consider drastically increasing fees and cutting home delivery service...which many Americans take for granted but is provided to less than half of Canadians.

Outside review suggests Canada Post drop door-to-door delivery
Last Updated: Saturday, May 2, 2009 | 8:10 AM ET Comments253Recommend95
The Canadian Press
An outside review done for the federal government suggests Canada Post should think about dropping door-to-door mail delivery as one way to address the corporation's "uncertain'' financial future.

The review, chaired by Mount Allison University president Robert Campbell, says Canada Post needs more than $3 billion over the next seven years to modernize equipment.

The 182-page report says that while door-to-door mail delivery is convenient for those who receive it, the high cost is paid for by all postal users, including those whose mail is delivered more efficiently to community mailboxes.

The review says the volume of letter mail is dropping by at least one per cent annually as more and more Canadians switch to email and other internet-based communications.

To strengthen Canada Post's balance sheet, the review recommends the first-class postage rate be boosted by up to seven cents over two years.

Although the report calls for a cut in Canada Post's labour costs, the 54,000-member Canadian Union of Postal Workers says a review of labour deals would be "a threat to the collective agreements.''

Appendix A:
Biographies of the Advisory Panel Members

See this link for the full report.

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