The Industrial Inquiry Commission report on the labour dispute at Canada Post recommends phasing out daily door-to-door letter mail delivery for individual addresses, while daily delivery to businesses should be maintained.
It also says the moratoriums on rural post office closures and community mailbox conversions should be lifted.
"My recommendations are based on my conclusion that there is a way to preserve Canada Post as a vital national institution," commissioner William Kaplan wrote in the 162-page report released Friday.
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"I have designed them to respond to the present problem: to arrest and then reverse the growing financial losses by putting into place the necessary structural changes both within and outside the collective agreements."
The report was called for after Ottawa asked the federal labour board to send postal employees back to work last year to end a strike that was disrupting holiday mail deliveries.
The report examined the state of Canada Post and its finances, in relation to reaching a labour deal.
Kaplan wrote that Canada Post is facing an existential crisis and is effectively insolvent.
"Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate," he wrote.
Canada Post CEO Doug Ettinger said in a statement Friday that Kaplan's report offers the Crown corporation, its employees and the Canadian Union of Postal Workers "a frank and straightforward assessment" of the challenges facing the postal service.
He welcomed the report's recommendations and said they come at a "critical time" as Canada looks to strengthen its economy to guard against U.S. threats.
Kaplan said that until recently, Canada Post was able to operate in a financially sustainable manner as low-cost urban and suburban mail delivery subsidized high-cost delivery to rural, remote, and Indigenous communities.
"This model no longer works because the traditional core business – mail delivery – has fundamentally changed: fewer letters must now be delivered to more addresses," he wrote.
Kaplan said that both sides were "diametrically opposed," leading to stalemates at the bargaining table, but he put the onus for failing to reach a deal on one side in particular.
"Bargaining largely failed because one party – CUPW – is defending business as usual," the report said, arguing the union is pushing for improvements on the "status quo."
Patty Hajdu, the newly sworn-in minister of jobs and families, said in a statement posted to social media Friday afternoon that the report "offers thoughtful suggestions on how to continue good-faith negotiations."
"It's time for everyone to put aside their differences, focus on shared goals, and ensure a strong postal system now and into the future," she said in a post on X.
Among its other recommendations, the report says Canada Post must have the flexibility to hire part-time employees to deliver parcels on the weekend and to assist with volume during the week.
It also says Canada Post must also be able to change routes daily to reflect volumes.
Throughout negotiations, CUPW has pushed back on proposals that would see Canada Post take on part-time workers to fill shifts, arguing those moves could compromise job security for full-time employees.
Earlier in the week, Canada Post had hit "pause" on negotiations with the union.
The corporation said at the time it was regrouping after several days of unproductive talks to come up with proposals for the union that reflect the postal service's financial reality.
CUPW dismissed this as a "tactic" and accused the employer of refusing to negotiate with "real intent."
On Friday, Ettinger said Canada Post "will work with our bargaining agents and our shareholder, the Government of Canada, to address our challenges and secure a sustainable path forward."
CUPW confirmed it received the Kaplan report but has not offered comment on its findings. The union said it was set to meet with Hajdu on Friday to discuss the report and negotiations.
CUPW has not responded to request for comment Friday.
This report by The Canadian Press was first published May 16, 2025
"I have designed them to respond to the present problem: to arrest and then reverse the growing financial losses by putting into place the necessary structural changes both within and outside the collective agreements."
The report was called for after Ottawa asked the federal labour board to send postal employees back to work last year to end a strike that was disrupting holiday mail deliveries.
The report examined the state of Canada Post and its finances, in relation to reaching a labour deal.
Kaplan wrote that Canada Post is facing an existential crisis and is effectively insolvent.
"Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate," he wrote.
Kaplan said that until recently Canada Post was able to operate in a financially sustainable manner as low-cost urban and suburban mail delivery subsidized high-cost delivery to rural, remote, and Indigenous communities.
"This model no longer works because the traditional core business – mail delivery – has fundamentally changed: fewer letters must now be delivered to more addresses," he wrote.
Among its other recommendations, it says Canada Post must have the flexibility to hire part-time employees to deliver parcels on the weekend and to assist with volume during the week.
It also says Canada Post must also be able to change routes daily to reflect volumes.
This report by The Canadian Press was first published May 16, 2025
