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

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

The future of many rural post offices in the London region and Southwestern Ontario is uncertain. The federal government has ended a decades-old moratorium that prevented the closure of rural postal outlets nationwide.

Background and Financial Challenges

Canada Post has been losing about $10 million daily, accumulating $5 billion in losses since 2018. The decline in traditional letter mail and increased competition from private couriers in the parcel sector have severely impacted the Crown corporation.

Government Response and Changes

In late September, the minister responsible announced significant changes to Canada Post’s business model, demanding a new turnaround plan within 45 days. Hours after Procurement Minister Joel Lightbound revealed these measures, the postal workers' union, representing 55,000 employees, initiated a two-week nationwide strike, later moving to rotating service interruptions.

Moratorium Lifting and Its Impact

Since 1994, around 3,700 post offices were protected from closure under a moratorium. Lightbound confirmed that this moratorium on closing rural post offices will be lifted, opening the door to potential shutdowns affecting many communities.

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

This move is part of broader efforts to help Canada Post reduce costs and become financially viable again.

Author's summary: The federal government lifts a long-standing ban on closing rural post offices as Canada Post faces heavy losses and seeks reform, risking vital community services in Southwestern Ontario.

Simcoe Reformer — 2025-11-06