Protecting Canada Post, A Public Service That Can Prosper

October 8, 2025

Open Letter to All Nova Scotia Members of Parliament from the NSFL

Dear Members of Parliament,

July 1, 1867, marks the founding of Canada’s public postal service. For over 150 years, Canada Post has connected Canadians from every region, from large cities to our smallest rural towns. It is not merely a mail service; it is one of the oldest public institutions in the country and a key part of our national identity. The Nova Scotia Federation of Labour, representing over 70,000 workers across our province, is deeply concerned by the federal government’s direction. The decision to lift the moratorium on rural post-office closures risks dismantling one of Canada’s most critical public services.

A Public Service, Not a Business: Canada Post was created under the Canada Post Corporation Act as a Crown corporation, owned by the people and accountable to Parliament. Its job is to provide fair, reliable, and universal service, not to chase profit margins. Yet today, management is closing post offices and cutting services with no public input. This will force seniors, people with disabilities, and working families to travel long distances for basic services. That is not modernization, that is abandonment of citizens.

A Crisis Manufactured from the Top: Canada Post was financially stable and even profitable for much of its modern history. But under CEO Doug Ettinger since 2019, the corporation’s priorities have shifted. While hundreds of communities face the loss of their post offices, millions are being spent on new plants and unused electric vehicle fleets. Executives continue to receive large salaries and bonuses, while workers are told the system is “unsustainable.” Mail volumes have not simply declined; management has shifted business away to Purolator, a courier company that Canada Post owns 91 percent of. The CEO sits on Purolator’s board, creating what many feel is a serious conflict of interest.

Accountability and Leadership Failure: The real crisis at Canada Post is one of accountability. Executives continue to receive substantial paychecks and bonuses despite declining service, community closures, and growing deficits. If postal workers performed this poorly, they’d be held to account, but at the top, failure is rewarded. Even worse, no one, not even our elected leaders, is stepping up to hold management accountable. Parliament has a duty to ensure that Crown corporations serve the public good, not the interests of the executive. Despite what some claim, Canada Post is not a drain on taxpayers. Even when it operates at a loss, it continues to strengthen Canada’s economy by supporting jobs, businesses, and communities. Postal services play a crucial role in driving economic activity and boosting GDP across the country, particularly in smaller towns where every job and service is vital.

Canada Post Isn’t a Tax Burden: The truth is simple: Canada Post has been a successful, self-sustaining public enterprise for most of its history. It has only required federal assistance a few times, and for many years, it has returned profits to the public purse. From the early 1990s through 2006, Canada Post recorded more than a dozen consecutive years of profitability, with hundreds of millions in net income. In 2005, it posted profits of nearly $200 million, and by 2006, it had made twelve straight profitable years, while paying dividends to the Government of Canada. These results demonstrate that, with exemplary leadership and accountability, Canada Post can be both financially strong and socially responsible. What it needs is innovative management, not privatization or cuts.

Postal Banking: A Real Solution for Communities: If Ottawa and Canada Post truly want to “modernize,” there is a proven way to do it: bring in postal banking. Postal banking is simple. It means allowing people to perform basic banking tasks, such as cashing cheques, paying bills, accessing small loans, and managing savings, right at their local post office. This model is already operational in countries such as France, Italy, New Zealand, and the UK. It keeps local dollars in local communities, creates new revenue for the postal system, and ensures people have fair access to financial services. In Atlantic Canada and rural areas across the country, this idea is more than convenient; it’s necessary. Over the past two decades, major banks have closed branches in small towns and working-class neighbourhoods, leaving people with limited access to in-person banking. Seniors, low-income families, and small business owners are forced to travel long distances or rely on costly payday lenders. Canada Post already has the network, infrastructure, and trusted staff to fill that gap. There are post offices in communities where no bank remains. Postal banking could provide these communities with secure, affordable financial services while generating a steady new revenue stream to help sustain Canada Post. Politicians should understand this clearly. Postal banking is not a radical idea; it’s common sense for many regions of the country, including Atlantic Canada, where banks have pulled out but people still need access to their money. Instead of closing post offices, we should be expanding their capabilities.

Rural Communities at Risk: In Nova Scotia, 223 post offices are now at risk of closure. Nationally, nearly 500 rural offices are at risk of disappearing. For many communities, the post office serves as a lifeline, providing a place to pay bills, collect medication, send and receive parcels, and stay connected. These closures will isolate seniors, undermine small businesses, and remove decent union jobs from local economies. Across the country, many small and medium-sized businesses have said publicly that Canada Post is their most affordable, reliable, and trusted delivery option. They recognize that without a robust public postal service, their costs will increase and their customers will suffer. We encourage every business owner who relies on Canada Post to contact their Member of Parliament and express their concerns. Even many right-leaning business groups have acknowledged that postal workers and their union, CUPW, play a crucial role in keeping commerce moving. Let’s not forget that losing these good, union jobs would create an economic downturn in communities across Canada, especially in rural and small-town regions. Losing good union jobs is not an option.

Erosion of a Public Institution: Canada Post is not a private company to be stripped for profit. It is a nation-building institution that unites Canadians. Its legal mandate requires it to serve all communities, not just those that are profitable. Closing hundreds of post offices contradicts that mandate and undermines the very purpose of a public postal service. We cannot let Canada Post become the next Royal Mail, a privatized, weakened, and unaffordable service for ordinary people.

Workers Deserve Respect, Not Interference: Liberal and Conservative governments have repeatedly interfered in collective bargaining, legislating workers back to work instead of allowing fair negotiations. Prime Minister Mark Carney says the best contracts are reached at the table. We agree. Let postal workers bargain freely, without interference from politics.

Our Call to Action: The Nova Scotia Federation of Labour calls on all Members of Parliament, from every party, to stand up for public accountability and service. We urge you to:

  • Reinstate the moratorium on rural post-office closures and protect the 223 threatened Nova Scotia locations.
  • Hold Canada Post leadership accountable for waste, mismanagement, and conflicts of interest.
  • Protect door-to-door delivery for those who rely on it.
  • Invest in innovation, such as postal banking and expanded community offerings, rather than making service cuts.
  • End political interference in free collective bargaining and respect workers’ rights.

Conclusion: Canada Post belongs to every Canadian. It is older than the Confederation and remains essential to our communities, economy, and identity. It must be managed transparently, responsibly, and for the public good, not for corporate gain. Members of Parliament, silence is not neutrality; it is complicity.

We urge you to act now, protect Canada Post, and help it thrive again as a truly public service, one that serves the people, creates jobs, and strengthens our communities for generations to come.

In solidarity,

Melissa Marsman

Secretary-Treasurer

Nova Scotia Federation of Labour

On behalf of the Executive Council and our 70,000 members in Nova Scotia

CC: Prime Minister Mark Carney; Minister

Joël Lightbound (Minister responsible for Canada Post);

Canada Post Board of Directors;

Canadian Union of Postal Workers (CUPW)

Statement from Melissa Marsman, President of the Nova Scotia Federation of Labour, on the Federal Budget

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