Five-point Action Plan - Canada Post

Canada Post’s

Five-point Action Plan

Our progress to date March 2015

Five-point Action Plan:

By the numbers

Delivery methods across Canada

Flexibility

• 15.7

• Knocked on more than

million addresses

• 32% door to door • 68% building lobby box, community mailbox (CMB), postal box and rural mailbox

68%

No change

32%

Being converted to CMB

36,000 doors

• Followed up on all customer calls • Moved or adjusted approximately 25% of sites nationwide • Notified every customer of their site with a personalized letter

Siting and installation • Canada Post responsible for all costs related to: > site selection > site preparation > installation > ongoing maintenance

Conversion in progress

Snow clearance

• Close to one million households converted or in process of being converted > Almost 100,000 in 2014 > Close to 900,000 in 2015 • Remaining households to be converted by 2019

• Over 1,500 contractors across the country • Clear snow around box, apply salt and/or sand • Ensure area is safe for customers and employees • $25 million national budget

Listening to Canadians

Accommodations

• Working in 90 communities

• Dedicated team to help those who call • Options developed to tailor

• Over 260,000 surveys completed by Canadian households • Over 90% of respondents prefer smaller sites closer to home Page b

to individual needs

• Free of charge, permanent or temporary/seasonal Canada Post’s Five-point Action Plan: Our progress to date

In 2014, Canada Post delivered 1.4 billion fewer pieces of mail than in 2006

Fort McMurray

Fort St. John

Bois-des-Filion Charlemagne Lorraine Repentigny Rosemère

St. Albert

Campbell River Williams Lake

Sherwood Park Prince Albert

Edmonton

Delta

Calgary

Mission Chilliwack Abbotsford

Calgary

Medicine Hat

St. John's Mount Pearl

Saguenay (boroughs of La Baie, Chicoutimi, Jonquière)

Yorkton

Bathurst

Moose Jaw

Victoria Langford Colwood Saanich Esquimalt View Royal Songhees First Nation Sidney North Saanich

Selkirk

Coaticook Cowansville Farnham

Estevan

Ottawa Rouyn-Noranda

Winnipeg

Keswick / Georgina

Map of conversions to community mailboxes 2014 conversions 2015 conversions

Oakville

Port Hope Richmond Hill

Stratford Hamilton

Ingersoll London Aylmer St. Thomas Central Elgin Southwold

Simcoe Delhi Tillsonburg Norwich Norfolk

Halifax

Joliette Notre-Dame-des-Prairies Saint-Charles-Borromée Saint-Paul

Ottawa Newmarket Aurora

Winnipeg

Charlottetown Stratford

Halton Hills (Georgetown) Markham (Unionville, Thornhill) Whitby Milton Halton Hills (Acton)

Windsor Tecumseh Lakeshore

Pierrefonds Île-Bizard Dollard-des-Ormeaux Pointe-Claire Terrebonne Mascouche Lachine Dorval Brossard Greenfield Park Saint-Lambert Sainte-Thérèse Blainville Boisbriand Laval

Pricing

Streamlining operations

• Tiered pricing structure introduced on March 31, 2014 • 85 cents per stamp for a booklet • $1 for purchase of a single stamp • Lower rates for businesses and charities

• More than

Retail

Labour

• 73

• Two

new franchise postal outlets

opened across the country

Canada Post’s Five-point Action Plan: Our progress to date

Halifax Dartmouth

2 million worked hours saved in 2014 compared to 2013

new collective agreements signed

• Lower costs and a defined contribution pension for new employees

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Executive summary

The simple reality of Canadians sending less mail every year continues to drive the need to transform our national postal service. As the market leader in consumer parcel delivery, we must also respond to the growing demands of online shopping. Implementation of the multi-year plan began in early 2014. Our goal is to create a sustainable Canada Post that is able to respond to the changing needs of Canadians. This report provides an update on our progress.

Community mailboxes •

As 2015 began, roughly one million households were either converted from door-to-door delivery to community mailboxes or were informed and in the process of being converted in 2015.

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We reach out to every household for feedback months before conversion and keep them informed throughout the process. We also keep municipal officials informed and invite them to work with us.

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We ensure all customers will have continued access to their mail and parcels. Our accommodation program follows best practices found in other programs. A trained and dedicated team works with individuals to tailor solutions for their unique needs.

A new approach to pricing •

On March 31, 2014, a tiered stamp pricing structure for letters mailed within Canada was introduced.

•

With mail volumes declining at their typical pace, this strategic increase in prices improved LettermailTM revenues in 2014.

Franchise post offices •

We opened 73 franchise postal outlets in 2014 across Canada. They offer the same pricing and services as corporate post offices, but typically provide greater convenience, are open longer hours and cost less to operate.

Streamlining operations •

We continued to leverage investments in automation to improve processing efficiency and reduce costs, while meeting service standards.

Addressing labour costs •

Positions are being reduced at all levels of the organization, largely through attrition, while respecting collective agreements and job security provisions. Lettermail is a trademark of Canada Post Corporation.


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Community mailboxes The plan The community mailbox initiative is a five-year project to convert the one third of Canadian households that still receive their mail at the door to community mailbox delivery. There will be no change in delivery for people living in rural areas, or for those living in apartment buildings, seniors’ buildings and condominiums who already have mail delivered to centralized boxes in the building lobby.

Progress to date As of early 2015, about one million households had either been converted to a community mailbox or had been informed that they would be converting in 2015. • Approximately 100,000 households were converted from door-to-door delivery to community mailbox delivery in 2014. • Approximately 900,000 households have been informed that they will be converting to community mailbox delivery in 2015. • The process is under way at various stages in more than 90 communities across Canada. • Canada Post has begun the conversion in every province.

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Municipal engagement As every community is different and unique, we recognize that a one-size-fits-all approach will not work. Canada Post has worked with municipalities across Canada for more than 30 years as we have installed thousands of community mailboxes. We have always favoured cooperation in fulfilling our mandate. We have found that collaboration with local officials benefits all stakeholders and, most importantly, improves the outcome for residents. • Before we begin the process in a community, we reach out to the mayor to provide an overview of the conversion and community-specific details, and to answer his/her questions. • We engage regularly with mayors and councillors throughout the process to keep them apprised of our progress. • Following our consultation with affected residents, we share community feedback with mayors, councillors and city planners.

We have found that collaboration with local officials benefits all stakeholders and, most importantly, improves the outcome for residents.

• We meet with municipal planning departments to exchange information on potential locations for new community mailboxes. Locations are determined based on factors such as safety, accessibility and proximity to the addresses they serve. • We provide preliminary siting maps to planning departments early in the process to serve as a basis for discussion on potential locations. These maps also include our suggested “business corridors,” or commercial areas where we will continue to deliver to addresses door to door. We work with municipal officials to find the safest, most convenient locations for each neighbourhood, leveraging existing street lighting and sidewalks where feasible. We build our plans based on customer surveys and established guidelines. This process helps to ensure municipal resources can be used most efficiently and keeps to a minimum the time requirement from city staff.

We meet with municipal planning departments to exchange information on potential locations for new community mailboxes.

To help offset any potential costs related to their involvement in converting door-to-door neighbourhoods, we offer $50 per site to the municipality early in the process.


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Community consultation and customer support Canada Post has developed a robust process to ease the transition for customers affected by this change. We consult with residents early in the process to determine their preferences and attempt to address their questions and concerns regarding the conversion. We also communicate regularly with customers throughout the process, which takes about 10 months to complete, to keep them informed and answer their questions.

We consult with residents early in the process to determine their preferences and attempt to address their questions and concerns regarding the conversion.

• We request feedback from affected residents through a survey that is mailed to every transitioning household immediately following the announcement that their neighbourhood will convert to community mailbox delivery. The survey, which can also be completed online, helps us understand the preferences of each community as to the location and the grouping of the units, as well as the issues that matter most to affected customers. • If residents wish to provide more detailed feedback, they are invited to participate in a more in-depth conversation through the online Community Mailbox Guidebook.

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We want to hear from you

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We heard you: the results of feedback in your neighbourhood

your community 3 Where mailbox will be

Questions you may have Why are you changing the way I get my mail? With Canadians mailing less and less each year, we have to make difficult decisions to secure the postal service for everyone. We know people don’t want us to become a burden on taxpayers. This change protects your mail delivery but reduces the cost of providing it. Delivering your mail to a community mailbox will cost half as much as delivering it to your door.

Your views will help the transition to community mailboxes.

Changing the way Canada Post delivers mail across the country will help secure the postal service for all Canadians.

What if I have a disability that means I can’t get to my community mailbox?

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Please fill out this survey and return it within four weeks. We understand that some seniors and some people with disabilities Mark each answer that best reflects may not beyour able to get to their community mailbox. If you need opinion with an X, and return the survey in special accommodation because you have significant mobility the enclosed postage-paidissues envelope. and lack alternatives to access a community mailbox,

MAIL RECIPIENT 1234 YOUR ST CITY PROVINCE A1B 2C3

please call us directly at 1-844-454-3009.

Canada Post is proud to serve you, and is committed to making your transition to community mailboxes as smooth and convenient as possible. You are part of this change and understanding your preferences will help us implement this initiative.

Or, if it is more convenient, visit canadapost.ca, enter your access code How do I get my mail and fill out this survey online.

and parcels?

You’ll be assigned a locked individual compartment for mail The access code is used so that only those who and smaller parcels. Larger parcels are delivered and locked into are affected by a change in service delivery fill one of the parcel compartments. A clearly marked parcel key will out the survey. be placed in your compartment, allowing only you to retrieve Your access code is: your parcel. Community mailboxes have been in use for 30 years, and millions of Canadian households already rely on them. canadapost.ca

What’s going to happen ... and when?

Converting to a community mailbox

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While community mailboxes have served millions of Canadians for three decades, we understand this represents a significant When it comes to CMBs, which of the following do you think is most important to you? change for affected customers and your community. Over the Please choose only one answer. coming months, Canada Post will work to ease this transition. PERSONAL SECURITY OF LOCATION ACCESSIBILITY DESIGN AND MAINTENANCE SAFETY YOUR MAIL We will begin by working with your municipality to find locations for the community mailboxes that will best serve your 2 neighbourhood. Proceed to page > Page 1 of 2 As we prepare to transition mail delivery in your neighbourhood to community mailboxes, we would greatly appreciate hearing directly from you. Please take the time to let us know what you think. The information we receive from you and your neighbours will factor into our planning of the transition in your community. Thank you in advance for your understanding and your input. Canada Post remains proud to serve you, and we are committed to making this transition as smooth and convenient for you as possible. Sincerely,

Mary Traversy Senior Vice-President, Business Transformation Canada Post

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Dear Canada Post Customer, As you know, your neighbourhood will be converting to community mailbox delivery. The location of the community mailbox serving your household has been determined.

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We want to hear from you 1 Please fill out the short survey in this package. It will help us with implementation. This survey is also online.

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Recently, Canada Post sent a letter informing you that we will be changing the way we deliver mail and parcels in your community. Beginning in the second half of 2015, Canada Post will deliver mail and parcels to new locked community mailboxes in your neighbourhood.

As a result, in most cases, community mailboxes will be carefully placed in groups of three or four units, close to the homes they serve. They will be set back a safe distance from the road and/ or intersection. If there are existing sidewalks and if it is possible, these mailboxes will be placed with sidewalk access. They will also be placed as close as possible to any lighting that may already be present in the area.

Domestic6 Lettermail in 2014 than they did in 2006. The changes we are making are necessary to 7 secure the future of postal GO service in Canada and avoid becoming a burden on taxpayers.

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Dear Canada Post customer

Your neighbourhood expressed a strong preference for small groupings of community mailboxes closer to home, rather than large groups farther away.

Ask, read, or share a question in our Q&A Forum on canadapost.ca 6 7

There will be no change in delivery for people living in apartment buildings, seniors’ buildings GONE and condominiums whoUPalready have mail delivered to boxes in the building lobby.

Making the decision to end mail delivery to the door has been difficult. Digital alternatives are Thinking ahead over the next year, do you think the amount of online shopping you do will replacing traditional mail and that trend will accelerate. As a result, people are using Canada Post go up or down? differently than they have in past years. Canadians mailed almost 1.4 billion fewer pieces of GO DOWN

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YES NO Canada Post will be making changes to delivery in your community next year. Most customers in your neighbourhood will start to receive their mail and parcels in new locked community mailboxes. looking forabout your input now, early in the process, to help us understand your HaveWe a are question community mailboxes? Over the past three years, has the volume of mail you send gone up or down? priorities and preferences. 1

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Based on the feedback, we understand that the following issues are important in your neighbourhood. To read a full report on the feedback from your community, visit canadapost.ca.

It will be several months before your community mailbox is

Canada Post has been serving Canadians through community mailboxes (CMBs) foryou three decades, ready for to use. We will provide regular updates between installing them in new developments as they have been built all across now Canada. Did you knowinformation about the location of your and then— including that 10 million Canadian homes already receive their mail through some form of mailbox, centralized community how and when you will receive your keys, delivery such as a community mailbox, boxes in apartment or condo lobbies, or date at post offices? and the delivery will begin.

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Here is the location of your community mailbox:

Max of 55 characters here (shown), describing location To view the location of your community mailbox on a map on canadapost.ca, use this access code:

Changing the way Canada Post delivers mail across the country will help secure the postal service for all Canadians.

123 456 789

Community mailbox locations are determined through careful planning. We considered safety, street lighting and sidewalk access, as well as survey feedback from your neighbourhood, in choosing this site. What happens next: We will begin installing community mailboxes in your neighbourhood. After the boxes are installed, we will provide you with keys to your new mailbox. Delivery to your community mailbox will begin on Abcdefday, Abcember 00, 2015. Your door-to-door service will continue until this date. We are committed to ensuring that everyone can access the postal service. If you need special accommodation because you have significant mobility issues and lack alternatives to access your community mailbox, please call us directly at 1-844-454-3009. Canada Post is proud to serve you and we are committed to making this mail delivery change as smooth and convenient as possible. If you have further questions, please visit canadapost.ca or call 1-844-454-3009. Sincerely,

Mary Traversy Senior Vice-President, Business Transformation, Canada Post

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The letter we sent included a survey asking for your feedback to help in our planning of the transition to community mailboxes. We heard from many in your community about priorities and preferences. We also heard some concerns, which we hope to address in this letter. Thank you for taking the time to share your thoughts.

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Your participation in this survey is completely voluntary. All responses you provide will be treated in accordance with Canadian privacy laws, will remain confidential and will only be used for purposes related to this program. The reporting of the data we collect will be in aggregate, meaning we will group many responses together and report on findings from groups of respondents.

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canadapost.ca

canadapost.ca

Please respond to the survey within four weeks. 2 If you have more time, please participate in a more in-depth conversation through the Community Mailbox Guidebook.

To use these tools, or for more information about the conversion of mail delivery where you live, visit canadapost.ca or call 1-844-454-3009.


• We later share the results of our local consultation with affected residents by mail, and analyze their feedback to determine the most suitable ways to serve them. • Before the final locations of the community mailboxes are communicated to all residents, we meet with customers who live adjacent to a community mailbox site. We knock on their doors to speak with residents in person and answer their questions. If a customer raises a concern about a location we have selected, we re-evaluate the site, look for alternative locations in the neighbourhood that meet our criteria, and adjust the location if possible. • Closer to the conversion date, all affected addresses receive, along with their keys, a Community Mailbox User Guide which answers common questions about their community mailbox.

4 Receiving your keys

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The keys to your community mailbox

canadapost.ca

canadapost.ca

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Delivery of mailbox keys will begin the week of .

Dear Canada Post Customer, Your mail will soon be delivered to a community mailbox located in your neighbourhood. Community mailboxes provide individual mail compartments that are locked, so you will need a key to retrieve your household mail.

Your keys will be delivered to your home. You don’t need to do anything to request them. Some customers ask to pick up their keys in person at a post office. If that is your preference, simply visit canadapost.ca before and use the access code to select a post office for delivery. At home or at a post office, your keys will arrive between . We understand that some seniors and Canadians with disabilities may not be able to get to their community mailbox. We are committed to ensuring that everyone can access the postal service. If you need special accommodation because you have significant mobility issues and lack alternatives to access your community mailbox, please call us directly at 1-844-454-3009. Community mailboxes are an important part of securing the future of postal service for all Canadians. Canada Post is proud to serve you and we are committed to making this mail delivery change as smooth and convenient as possible. If you have further questions, please visit canadapost.ca or call 1-844-454-3009.

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onfirming you are C ready to use your community mailbox

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The keys to your community mailbox are enclosed. M5582L

Dear Canada Post Customer, We have enclosed an envelope containing three keys to your new household mailbox. Please give your keys a try as soon as possible. If you have any issues accessing your new box with them, call 1-844-454-3009 so that we can quickly respond. Please keep your keys in a safe place. Delivery to your community mailbox will begin on .

Location:

Compartment number: In addition to your keys, this package also includes a Community Mailbox User Guide. We’ve included a spot on the cover of your guide where you can note the above location details. Inside the guide you’ll find answers to many questions you may have about your community mailbox, both now and as you use it over time.

Your module number Your compartment number

Canada Post is proud to serve you and we are committed to making this mail delivery change as smooth and convenient as possible. If you have further questions, please visit canadapost.ca or call 1-844-454-3009.

Sincerely,

Sincerely,



Please try your keys as soon as possible.

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Delivery to your new community mailbox will begin on .

Dear Canada Post Customer, You should now have everything you will need to start picking up your mail and parcels at your new community mailbox. Your keys were scheduled to be delivered to your home or, if you requested, to a post office of your choice.

Here are the details of your new mailbox:

Module number:

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IMPORTANT: If you haven’t received your keys by , please follow these instructions as soon as possible:

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Canada Post Community Mailbox User Guide My community mailbox location:

Complete a request form online at canadapost.ca or call 1-844-454-3009. To complete your request, you will need the following access code: . Once you make this request, we will change the lock on your community mailbox compartment and send you a new set of keys to ensure the security of your mail. Your new keys will arrive before delivery to your community mailbox begins. If you are waiting to hear about a request regarding delivery accommodation due to a disability, we will be contacting you soon. Canada Post is proud to serve you and we are committed to making this mail delivery change as smooth and convenient as possible. If you have further questions, please visit canadapost.ca or call 1-844-454-3009. Sincerely,


If you haven’t already done so, we would ask that you give your new keys a try as soon as possible. If you experience any issues accessing your new box with the keys provided, please call 1-844-454-3009 immediately so that we can quickly respond and ensure you have easy access to your community mailbox.

My module #: My compartment #:


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Canada Post has also created a dedicated toll-free customer service line specifically for this project.

• At any time, customers can visit canadapost.ca and enter their postal code to access the most current information regarding the transition in their community. Throughout the conversion process, they will be able to complete the online survey, view the location of their community mailbox on a map, and request that their keys be delivered to a nearby post office of their choice, among other things. • Residents can also visit our online Community Mailbox Question & Answer forum to ask questions about the transition to community mailboxes and read previously posted answers. Thousands of customers have asked questions and received answers regarding specific aspects of the community mailbox conversion. • Canada Post has also created a dedicated toll-free customer service line specifically for this project. Customers can call 1-844-454-3009 to speak with specially trained agents about the delivery changes in their community.

Residents are invited to participate in an in-depth conversation through the online Community Mailbox Guidebook.

Residents can visit our online Community Mailbox Question & Answer forum to ask questions about the transition to community mailboxes and read previously posted answers.

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Delivery accommodation Canada Post is committed to ensuring all customers have access to the postal system, understanding that some Canadians with disabilities or mobility issues have concerns about the change in their delivery service. Every person’s situation is unique, and we must tailor our solutions to individual circumstances on a case-by-case basis. Through consultation with various organizations, we have created a comprehensive and confidential accommodation process to ensure customers with disabilities can continue to access their mail and parcels. Canada Post can also provide delivery accommodation solutions to existing community mailbox users. • Customers who have concerns about their ability to access a community mailbox are invited to call 1-844-454-3009. Canada Post will then send an information package and a questionnaire to the customer to better understand his/her concerns, while respecting privacy. • After receiving a customer’s completed questionnaire, a member of our dedicated and specially trained delivery accommodation team will contact the customer to discuss his/her unique needs and the solutions we can offer. • Delivery accommodation solutions could include:

Examples of modifications Canada Post can make

1. A compartment could be equipped with a sliding tray. The tray makes it easier for a customer to reach the mail by reducing bending and stretching.

2. Customers could be assigned a compartment at the height or part of the mailbox that they identify as the most appropriate to their needs.

> Providing customers with a compartment at the height or part of the mailbox they identify as most appropriate > Equipping a customer’s compartment with a sliding tray to make it easier to see and reach the mail without bending or stretching > Providing a key-turning aid for a customer with arthritis or dexterity issues > Redirecting customers’ mail to a post office or to a trusted person they designate

3. If arthritis or dexterity are important considerations, Canada Post can provide a key turner. It assists the customer in inserting, turning and pulling out the key.

> Collecting customers’ mail from their assigned community mailbox compartment and delivering it to their door one day per week These accommodations are provided to customers free of charge and can be offered permanently or temporarily, such as for the winter. 4.The tags for keys to the parcel compartments contain braille and raised lettering to help customers with impaired vision locate the compartment with their parcel. Canada Post’s Five-point Action Plan: Our progress to date

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Installation and ongoing maintenance Canada Post is responsible for all installation and maintenance costs related to the community mailboxes and has been since they were introduced 30 years ago. That includes siting, site preparation such as curb cuts to ensure access, installation and ongoing maintenance. Canada Post takes its responsibility to keep community mailbox sites clear and accessible during the winter very seriously. We have dedicated local teams in each community with precise instructions on how to clear snow and ensure the area around the box is safe for customers and our employees who have to access the box. This commitment is in place for the boxes that have been serving Canadians for decades as well as any new boxes we install. While it has not been a common problem, any ongoing issues regarding litter or graffiti at community mailbox sites should be brought to our attention. That way we can clean the site and look at any other potential actions that may be necessary. As most municipalities have excellent residential paper recycling programs, we encourage all customers to bring their mail home and deposit any unwanted items into the proper recycling receptacle. To encourage that behaviour, Canada Post does not install recycling or garbage receptacles at mailbox sites. If any customer feels there is an issue that requires attention, he/she can contact customer service at 1-844-454-3009. Canada Post takes its responsibility to keep community mailbox sites clear and accessible during the winter very seriously.

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A new approach to pricing The plan On March 31, 2014, Canada Post increased the basic postage rate and introduced a tiered stamp pricing structure for letters mailed within Canada. As part of this strategic increase in prices, stamps sold in booklets, coils and panes rose from $0.63 to $0.85 for letters 0-30 g mailed within Canada and single stamps rose to $1. There was no increase for the basic stamp price in 2015 to mail a letter within Canada. We did adjust prices for some of our competitive products, such as our parcel and direct marketing services, as well as some of our non-regulated transaction mail services.

Progress to date In 2014, volumes of transaction mail, which includes mostly letters, bills and statements, fell by about five per cent compared to the previous year. This was comparable to the declines we’ve seen in recent years which was better than anticipated. As a result, the stamp pricing adjustment contained in the Five-point Action Plan, introduced at the start of the second quarter, helped to offset the impact of the decline.


On March 31, 2014, Canada Post increased the basic postage rate and introduced a tiered stamp pricing structure for letters mailed within Canada.

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Measures to support small businesses and non-profits Canada Post understands that the price adjustment represents an additional cost to Canadians, including small businesses and nonprofits. To help manage the transition and minimize the immediate impact of the price increase, we introduced some temporary and permanent measures to support small businesses and charities. From March 31 to December 31, 2014, we offered: • A 5% discount to small businesses that were part of our VentureOne program and that purchased a minimum of 300 PermanentTM stamps in coils of 100 or more, in a single transaction. • For customers who use postage meters, a 5% rebate on their Lettermail postage purchases up to a maximum rebate of $250. To help small businesses and charities use direct mail to support their operations in the long term, Canada Post also permanently lowered the minimum volume requirement on a number of key products. This gives them access to lower postage rates for the distribution of their advertising and other materials.

To help manage the transition and minimize the immediate impact of the price increase, we introduced some temporary and permanent measures to support small businesses and charities.

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Franchise post offices The plan Canada Post is emphasizing customer convenience as it strengthens its retail network by opening more postal franchises. Franchise post offices: • are open extended hours • offer more parking • provide additional and more convenient locations for parcel pickup and returns • allow busy Canadians to do more of their shopping in one place, because franchise post offices are located in stores, plazas and malls • benefit the host businesses as post offices generate increased customer traffic

Franchise operations offer the same products, services and prices as corporate post offices, and they cost less to operate.

Franchise operations offer the same products, services and prices as corporate post offices, and they cost less to operate. Canada Post has also been streamlining its network of traditional corporate post offices. Most often, this involves adjusting the hours of operation to realign them where customer traffic patterns warrant.


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Progress to date Canada Post opened 73 franchise postal outlets in 2014 across the country.

The Canadian Postal Service Charter and the moratorium on closing rural post offices have been respected.

Canada Post is strengthening its competitive advantage and is making post offices an even more integral aspect of the online shopping experience. The initiative is achieving the target benefits and is on track to realize projected savings. In addition, a number of corporate post offices were streamlined in response to customer usage. Hours of operation were adjusted after local municipal officials were contacted and after informing the community. In some instances, the proposed hours were readjusted in response to local input. The Canadian Postal Service Charter and the moratorium on closing rural post offices have been respected.

Canada Post is strengthening its competitive advantage and is making post offices an even more integral aspect of the online shopping experience.

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Streamlining operations The plan Canada Post is changing internal operations to improve the flow of mail and parcels to customers. This is achieved primarily by leveraging the investment in automation. Consolidating the sorting of mail and parcels into major plants with the highest concentration of costeffective high-speed automated sorting equipment reduces the cost of operations.

Progress to date In 2014, Canada Post streamlined its network to consolidate volumes and work in larger centres, to take advantage of automated sorting equipment. • The processing of some mail and parcels moved from plants in Ottawa, Hamilton, London and Saint John to major plants in Montréal, Toronto and Halifax. • Some work was transferred from 10 other smaller locations to larger facilities, which reduced manual processing.

Consolidating the sorting of mail and parcels into major plants with the highest concentration of cost-effective high-speed automated sorting equipment reduces the cost of operations.

• We restructured over 110 delivery depots to achieve greater efficiencies. • We consolidated remote address coding work from several cities to two facilities in Richmond, B.C. and Toronto.


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In early September 2014, Canada Post officially opened the stateof-the-art Pacific Processing Centre in Richmond, B.C. The high-speed automated sorting equipment for Lettermail, parcels and packets allows the Corporation to implement motorized delivery and other measures that have produced significant savings. Canada Post has also invested in new automated parcel sorting at the processing plant in Montréal. This, too, achieved productivity gains. Our streamlining efforts are designed to ensure we maintain service standards and therefore minimize any impact on customers. Service standards for delivery of Lettermail are being respected, while service performance for parcels continues to be strong. Operational costs are decreasing and we are on our way to realizing the savings we projected once these changes are fully implemented. Canada Post will continue to explore how it can realize further financial benefits from streamlining operations.

In early September 2014, Canada Post officially opened the state-of-the-art Pacific Processing Centre in Richmond, B.C.

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Addressing labour costs The plan Canada Post intends to address its labour costs through the collective bargaining process and to reduce its workforce, largely through attrition, by implementing the initiatives within this plan. Canada Post has also committed to addressing the costs associated with non-unionized and management employees in line with the changes to its operations and unionized workforce.

Progress to date Canada Post and two bargaining agents successfully negotiated two new collective agreements in 2014. Both agreements minimize the impact of change on existing employees, and help to address labour costs. They do so by offering new employees a lower starting wage and eligibility in a defined contribution pension plan rather than a defined benefit plan. Since 2010, new management and non-unionized employees have been eligible for a defined contribution pension plan.

Canada Post and two bargaining agents successfully negotiated two new collective agreements in 2014.

The first successful outcome in 2014 was with the Public Service Alliance of Canada/Union of Postal Communications Employees. It represents employees in administrative or technical roles. They ratified Canada Post’s final offer in a vote that concluded in April 2014. Later in 2014, employees represented by the Association of Postal Officials of Canada also reached a new collective agreement. This association represents supervisors as well as trainers, route measurement officers and some sales employees.


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The initiatives that make up the Five-point Action Plan, including the conversion to community mailbox delivery and the streamlining of operations, are helping to address labour costs. In 2014, we saved 2,076,000 worked hours compared with the previous year, which represents a reduction of 3.2%. These efficiencies mean that we will be able to reduce our workforce gradually and in accordance with our collective agreements. This workforce reduction will be achieved largely through attrition, as 15,000 employees are expected to retire or leave the company over the next five years.

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