Canada Post shake-up: Is your rural outlet safe?

Canada Post Shake-Up: Is Your Rural Outlet Safe?

The future of dozens of rural post offices in the London region may soon be uncertain as the federal government lifts a decades-old moratorium on closing rural postal outlets. This change is part of a broader effort to help Canada Post reduce losses and revamp its business model.

Background and Financial Challenges

Canada Post has been losing around $10 million daily, accumulating losses of $5 billion since 2018. The decline in traditional letter mail and competition from private couriers in the parcel market have significantly strained the Crown corporation's finances.

Government and Union Reactions

In late September, the minister overseeing Canada Post announced major reforms and gave the corporation 45 days to propose a turnaround plan. Shortly after, the postal workers’ union launched a nationwide strike lasting two weeks, later shifting to rotating service disruptions.

Moratorium on Rural Closures Lifted

Since 1994, about 3,700 post offices have been shielded from closure.
Procurement Minister Joel Lightbound announced the end of the moratorium on rural post office closures.

"Some 3,700 post offices have been protected against closing since 1994, but Lightbound said a moratorium on rural closings is being lifted."

Implications for Southwestern Ontario

Brian Williams, a reporter from LFP, examines how these changes could impact postal services in Southwestern Ontario, particularly the rural communities reliant on these outlets.

Summary

Canada Post’s ongoing financial losses and changing delivery landscape have prompted the government to allow rural post office closures, sparking union strikes and causing uncertainty for rural postal services.

"Bleeding about $10 million a day, with losses of $5 billion since 2018, Canada Post is struggling as traditional letter mail dwindles and private couriers eat into the parcel business."

Author's summary: The lifting of a decades-old moratorium on rural post office closures marks a critical shift in Canada Post’s strategy amid heavy financial losses and rising service disruptions.

Simcoe Reformer — 2025-11-06