A Canada Post mail carrier delivers mail and packages on their route in Montreal.   (Christinne Muschi/The Canadian Press via AP, File)

A Canada Post mail carrier delivers mail and packages on their route in Montreal. (Christinne Muschi/The Canadian Press via AP, File)

The Canadian government announced Thursday that it will allow Canada Post to phase out home mail delivery, a move that immediately triggered a nationwide strike by postal workers.

“Canada Post is effectively insolvent,” said government minister Joel Lightbound, noting that more than three-quarters of Canadians already collect mail from community boxes. Ending door-to-door service for the remaining 4 million addresses is expected to save about $400 million Canadian ($287 million US) annually, with the transition largely completed by 2029.

Canada Post, a crown corporation structured like the U.S. Postal Service, has been losing money for years. Officials project losses of $1.5 billion Canadian ($1.1 billion US) this year alone. While stressing that the service remains vital—especially for rural, remote, and Indigenous communities—Lightbound said repeated government bailouts are unsustainable. Alongside ending home delivery, Ottawa also plans to lift a longstanding freeze on rural post office closures and shift non-urgent mail from air transport to trucks.

The Canadian Union of Postal Workers condemned the reforms as “drastic,” arguing they will hurt both employees and the public. The union says financial struggles stem in part from protracted contract negotiations and insists that fairer agreements, along with recent stamp price hikes, could return the service to solvency. While on strike, workers will continue delivering government checks, but CUPW says the cuts overlook the social role postal workers play—such as checking in on elderly residents. A 2023 report even suggested that Canada Post could expand into community services, following Japan Post’s example, as a way to generate new revenue.

The reforms align with recommendations from a commission tasked with addressing Canada Post’s labor and financial crises. Its report warned that falling mail volumes make the existing infrastructure and workforce unsustainable. “There is every reason to believe—and no reason not to—that the letter mail decline will continue,” the commission concluded, predicting the eventual extinction of traditional mail delivery.

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