Canada Post to cut urban home deliveries

Dec. 11, 2013 at 1:23 PM   |   0 comments

OTTAWA, Dec. 11 (UPI) -- Canada Post said Wednesday it will phase out urban delivery and cut up to 8,000 employees in five years in an effort to curb losses.

The job cuts and expected attrition would eliminate 15,000 jobs in five years, Canada Post said.

The Canadian Broadcasting Corp. said Canada Post also announced price hikes that would start March 15.

The price of an individual stamp would rise to one dollar. If bought in a pack, stamps would cost 85 cents, up from the current price of 63 cents, the CBC said.

With consumers relying more on the Internet, Canada Post lost $104 million in the second quarter.

In September, Transport Minister Lisa Raitt said in a cessation of door-to-door delivery in urban areas was worth considering.

"That's a huge cost savings and it's those kinds of things that we want to see come to fruition," Raitt said.

The Conference Board of Canada said in April that a majority of Canadians already use other systems besides home deliveries. The alternatives, used by two-thirds of Canadians, include rural mailboxes, group mailboxes and centralized mail points.

The research firm recommended community mail boxes, claiming that would be the fastest way to stem Canada Post losses, the CBC reported.

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