Canada Post to phase out urban home mail delivery

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Canada Post to phase out urban home mail delivery

Post by aethelwulf »

Canada Post to phase out urban home mail delivery

Cost of stamps rising 'substantially,' new business plan coming

Canada Post is phasing out door-to-door delivery of regular mail to urban residents and increasing the cost of stamps.

CBC News learned of the Crown corporation's plans Wednesday, although no timeline was immediately available.

The cost of a stamp will increase, but no specific details were readily available.

However, Canada Post is expected to announce a new business plan at 10 a.m. ET.

Transport Minister Lisa Raitt said in September the idea of cutting door-to-door delivery in urban areas was worth considering in the face of $104 million in losses in the second quarter.

"That's a huge cost savings and it's those kinds of things that we want to see come to fruition," she told CBC News.

The latest Canada Post financial data show it lost $73 million in this fiscal year's third quarter compared to the same quarter in 2012.

Revenue dropped $20 million in the first three quarters of 2013 compared to the same timeframe last year.

A Conference Board of Canada report released in April said two-thirds of Canadians already do without door-to-door regular mail service, whether through rural mailboxes, group mailboxes, delivery facilities or "centralized mail points."

It said stopping door-to-door delivery of mail to urban Canadians and replacing it with community mailboxes (CMBs) would have the largest financial impact on a projected $1-billion Canada Post deficit by 2020.

CMBs have been around since the 1980s, with the rise of new home developments, where they are now standard. It's estimated there 3.8 million households now get their mail through CMBs.

Wednesday's announcement was made two weeks before Christmas, during one of the busiest delivery periods of the year.

Canada Post by the numbers

5,094,694 people get door to door delivery in Canada.
Average cost per address is $269.
3,804, 574 get mail through group mail boxes.
Average cost per box is $117.
http://www.cbc.ca/news/canada/ottawa/canada-post-to-phase-ou ... -1.2459618
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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

Boy, I know other countries have discussed it (or even followed through with it), but that's a huge number of employees that will require termination, retirement or reallocation.

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Re: Canada Post to phase out urban home mail delivery

Post by norvic »

Perhaps they would like to take Moya Greene back, pay her C$1m pa and increase inland postage rates by 30% - that plan seems to have made Royal Mail viable with its 6-days-a-week household delivery; athough they have said that there will be no bikes by the end of 2014. :(
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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

“This change will provide significant savings to Canada Post and will have no impact on the two thirds of Canadian households that already receive their mail and parcels through community mailboxes, grouped or lobby mailboxes or rural mailboxes,” Canada Post says in a statement.

Canada Post will also significantly increase the price of stamps as of March 31, 2014:

Stamps bought in booklets or coils will now cost $0.85 per stamp
Stamps purchased one at a time will now cost $1


The Postal service also says it will permanently reduce its workforce. With nearly 15,000 employees expected to retire or leave the company in the next five years, Canada Post says the job cuts can be accomplished through attrition.
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Re: Canada Post to phase out urban home mail delivery

Post by norvic »

Ah, the Dutch pattern, I believe.

UK residents, can you imagine the uproar from the redtops if that happened here? :lol:
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

Under Moya, CanadaPost turned a profit year after year. She left, and things went into red ink. The current CEO blames it on costs related to upgrades in sorting facilities (in which case, the losses are temporary, yet they want to make permanent changes to the system to make up for the loss?)

I wonder if there is some creative bookkeeping going on? One of the public transit bus companies here in HK was whining last spring about losing millions, and wanting a government handout. Turns out, yes operating the buses themselves loses money, but the company had a huge profit from advertising. They split the ad revenue off as a separate business, to make the bus operation itself look bad. But CanadaPost is a crown corporation, so what incentive would there be to, say, hive off a profitable section like parcels and say "look, we're bleeding money by operating".
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

librarianc wrote:
Canada Post will also significantly increase the price of stamps as of March 31, 2014:

Stamps bought in booklets or coils will now cost $0.85 per stamp
Stamps purchased one at a time will now cost $1
This sounds like a complicated accounting mess.

People won't really be able to complain "why are you charging me $1 for a stamp with a face value of only $0.85?", because everything will just have a "P" indicia.

Given the number of franchised postal outlets, the owners will be happy to see stamps sell for $1 each, more money to them.

Time to stock up on "P" stamps at $0.63 if they're going to go to $0.85. 8)
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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

aethelwulf wrote: Time to stock up on "P" stamps at $0.63 if they're going to go to $0.85. 8)
My concern is demonetizing all older "non-P" postage.......I don't even want to think about adding more postage to my inventory

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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

Interesting graph
Image
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Re: Canada Post to phase out urban home mail delivery

Post by drseg »

Terrible news... The beginning of the end...
However we must admit that it really reflects a reality. These days I must receive big max 3 letters per month. All companies force you to switch to digital bills, otherwise they charge you 1 or 2$ for mailing you a copy. In addition nobody sends letters anymore. For example, this year I have so far received more digital Christmas cards than postal ones. :cry:

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Re: Canada Post to phase out urban home mail delivery

Post by JaceStamps »

librarianc wrote: My concern is demonetizing all older "non-P" postage.......I don't even want to think about adding more postage to my inventory

John A
You and Me both, I have literally tens of thousands of dollars tied up in mint postage.

On a side note, the post offices and Canadapost website took all the "P" rate stamps off sale this morning. Which explains why the NHL and Christmas stamps have a 63cent value on them.
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Re: Canada Post to phase out urban home mail delivery

Post by norvic »

JaceStamps wrote:On a side note, the post offices and Canadapost website took all the "P" rate stamps off sale this morning. Which explains why the NHL and Christmas stamps have a 63cent value on them.
That's another story for MargoZ to add to the 'what happened in December' list for January publication. :?
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Re: Canada Post to phase out urban home mail delivery

Post by BarryM »

Here's the notice regarding the changing prices from Canada Post:

"A new approach to pricing Lettermail to take effect March 31, 2014
Canada Post will introduce a new tiered pricing structure for Lettermail mailed within Canada, which will better reflect the cost of serving various customer segments. Under these changes, the majority of Canadians, because they buy stamps in booklets or coils, will pay $0.85 per stamp, with discounts for customers that use the mail most. The minority of consumers who purchase stamps one at a time, which represents an estimated 2 per cent of stamp purchases, will pay $1 per stamp. The average Canadian household purchases fewer than 2 stamps per month. These stamp price changes will take effect March 31, 2014."


Interestingly enough, it looks like Canada Post is reissuing all the "P" definitive designs as 63¢ stamps in January. These will have a very short life span. Finding them properly used on non-philatelic mail will be an even greater challenge for those who collect postal history. There may be the same issue for recently issued "P" stamps that weren't on sale for very long.

I didn't see anything about demonitizing any non-P denominated postage in any Canada Post announcement, Since they just took all the "P" stamps off sale, and CP has always retained a value on the US and overseas rate stamps, I doubt this will happen. If they tried doing that, I assume there would be a significant class action law suit started, and I would be the first to sign up. :)

I'm rather concerned if the philatelic center has taken all P stamps off sale as well (as opposed to just the website). Fortunately, I just placed a catch up order for a few booklets I missed, but there may be a lot of disappointed collectors out there.

Interestingly enough, the pre stamped envelopes have also went off sale, except for high markup items with notecards (i.e. the "Write Me Back" envelope/note card sets).


Barry

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Re: Canada Post to phase out urban home mail delivery

Post by AMark »

I was just at a PO and all the "P" Permanent stamps are no longer available for sale. Apparently, all the POs received an e-mail ordering them to remove all the "P" stamps from sale. If they sell any "P" stamps and Canada Post finds out, they will face repercussions. The only stamps that are sold at POs are stamps with the 63¢ value on them.
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Re: Canada Post to phase out urban home mail delivery

Post by JaceStamps »

Just a heads up to Canadians wishing to grab some "P" stamps while they still cost 63 cents each.

Most larger areas have a Staples (Business Depot). They sell coils and booklets at the checkouts. I checked and they still have lots available. (call before driving over, as many businesses will be stocking up today.)

Also the rate increase still requires Parliaments approval, as they are only approved to raise the rate 2 cents per year until 2015.
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Re: Canada Post to phase out urban home mail delivery

Post by BarryM »

Costco might be another option for anyone wanting to stock up on P coils. I'm not a member any more so I can't drop in and check it out.

I have several years worth of discount postage, so I'm not too worried about this though.

I wonder if the catalog value of mint "P" stamps will get adjusted up next year based on their new use value? Normally I wouldn't expect any change, but this is a significant hike in value.

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Re: Canada Post to phase out urban home mail delivery

Post by BarryM »

I just noticed, Canada Post has even deleted all of the quarterly packs that included "P" stamps except the 4th quarter pack. This is bound to seriously annoy a lot of collectors that haven't ordered all the most recent packs.

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Re: Canada Post to phase out urban home mail delivery

Post by Allanswood »

What's a "community mail box"?

After all they are talking about not delivering a letter to you at home anymore? Isn't that the whole point of the mail?
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Re: Canada Post to phase out urban home mail delivery

Post by Berlin-Gus »

Community Mail Boxes are a large group of mail boxes located throughout a community. Postal patron's need to go to them to fetch their mail rather than a mail carrier dropping mail of at the patron's house.

The attached picture shows the community mail boxes at Bolsover, Ontario. Bolsover is a small rural community in Victoria County (Ontario)

Image
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Re: Canada Post to phase out urban home mail delivery

Post by Berlin-Gus »

Canada Post, in their wisdom, feels that by cutting services and raising postal rates by 35%, they will resolve their financial problems. Shooting yourself in the feet means that you can't walk, never mind run. They need to become more innovative rather than spending billions of dollars centralizing postal services. Here is a good example.

Kapuskasing is a town 500 miles north of Toronto in Ontario Canada. All mail in Kapuskasing will henceforth be sorted in Toronto. That means it will be trucked to Toronto (minimum 10 hour drive), sorted, and returned to Kapuskasing. Ah yes, but they will be able to use their under utilized Toronto sorting plant. This includes local mail.

Northern Ontario winters are very harsh. It does not take an Einstein to figure out that this system will not work and yet they insist it will save money. Why would you want to use a postal service that provides that kind of service?
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Re: Canada Post to phase out urban home mail delivery

Post by Global Administrator »

JaceStamps wrote:
Also the rate increase still requires Parliaments approval, as they are only approved to raise the rate 2 cents per year until 2015.
Surely if 'P' stamps have all been rapidly withdrawn from sale this week and POs threatened with sanctions if they sell them, it seems to me a done deal with Govt has been assured, behind closed doors?

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Re: Canada Post to phase out urban home mail delivery

Post by Tassie_Stamps »

Berlin-Gus wrote:Community Mail Boxes are a large group of mail boxes located throughout a community. Postal patron's need to go to them to fetch their mail rather than a mail carrier dropping mail of at the patron's house.

The attached picture shows the community mail boxes at Bolsover, Ontario. Bolsover is a small rural community in Victoria County (Ontario)

Image
Same thing is beginning in Australia - "Parcel Lockers" :cry:

Saves money for the post office.

Prices increase, service provided decreases - in every aspect of life lately.

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Re: Canada Post to phase out urban home mail delivery

Post by Berlin-Gus »

Global Administrator wrote:
JaceStamps wrote:
Also the rate increase still requires Parliaments approval, as they are only approved to raise the rate 2 cents per year until 2015.
Surely if 'P' stamps have all been rapidly withdrawn from sale this week and POs threatened with sanctions if they sell them, it seems to me a done deal with Govt has been assured, behind closed doors?
Canada's CBC reported today that Federal Transport Minister Lisa Raitt stated that the Federal Government is supportive of Canada Post's plan. So, the Federal Govt. supports the rate increase and cuts in service even though the rate increase FIRST needs to pass in the House of Commons. Since we have a "majority" government you can bet your pennies on the fact that this is a done deal.
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Re: Canada Post to phase out urban home mail delivery

Post by Global Administrator »

If any Canadian members reading this want to buy a few 1000 x P stamps at around the CURRENT face, please contact me ASAP.

Sounds like an instant ~65% gain, when new rate comes out!

63c to $1 is a 65% price hike basically. No wonder all POs have had them withdrawn immediately from sale!

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Re: Canada Post to phase out urban home mail delivery

Post by AMark »

Here is an interesting breakdown of delivery costs.


It costs Canada Post an average of about $168 per address annually to operate the mail system.

Door to door (one-third of Canadians) – $283 per address

Centralized point, such as an apartment lobby lock box (one quarter of Canadians) – $127 per address

Group/community mailbox/kiosk (one quarter) – $108 per address

Delivery facility such as a postal box (12 per cent) – $59 per address

Rural mailbox (five per cent of Canadians) – $179 per address


An April report by the Conference Board of Canada said almost half of all Canadian households send no more than two pieces of mail each month.

Source: http://www.cbc.ca/news/canada/canada-post-mail-volume-costs-and-other-quick-facts-1.2459693
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Re: Canada Post to phase out urban home mail delivery

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A word from the Canadian Union of Postal Workers.


The national president of the Canadian Union of Postal Workers (CUPW) in an afternoon news conference Wednesday said that the changes would be the "end of an era."

Denis Lemelin said he's calling for people who like the postal service the way it is, including seniors and people with disabilities, to join together and fight the move.

“Where many postal operators are responding to a changing postal business with innovation, Canada Post is relying on cuts and rate increases,” he said in a news release.

“We recognize that Canada Post needs to change, but this is not the way!”

Lemelin said at the news conference that he doesn't know of any other developed country that has taken away door-to-door mail delivery. He also said the increase in the price of stamps will make the postal service inaccessible for many.

The seniors advocacy group CARP said in a statement that the changes will create a barrier for elderly residents, particularly those with mobility issues.
"People who do not have family or caregivers will be denied access to necessary communications — whether bills or more important to them, letters from family," the group said in a statement.

"Before instituting such wide-ranging changes, some provision must be made for those who actually still value the postal service and rely on it heavily."

Meanwhile, the Canadian Federation of Independent Business said it is "alarmed" by the postage hikes put forward in Canada Post's plan.

"Introducing massive letter mail price hikes for residential and business consumers is not the way to rescue a failing government entity," said CFIB president Dan Kelly in a statement. "These hikes will have a significant impact on many small businesses that use the mail to connect with customers or invoice and pay suppliers."

Source: http://www.cbc.ca/news/canada/ottawa/canada-post-to-phase-ou ... -1.2459618
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Re: Canada Post to phase out urban home mail delivery

Post by Allanswood »

It costs far more to deliver local that it does rural? How does that work!

Plus yes the average household might send 2 bits of mail a month, what what do they receive?

So in other words they are asking the average householder not just to use their labour to send a letter, but now to use their labour go get your own mail. What do you guys do when it's knee deep in snow?

Why didn't they just try delivering every second day, phasing out employees as they retire, cutting the workforce slowly and without pain in half that way?
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

JaceStamps wrote:I have literally tens of thousands of dollars tied up in mint postage.
Well there's an idea...tear sheets of stamps into vertical strips, and use them as the wrappers on stacks of banknotes. 8)
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

Global Administrator wrote:Surely if 'P' stamps have all been rapidly withdrawn from sale this week and POs threatened with sanctions if they sell them, it seems to me a done deal with Govt has been assured, behind closed doors?
With the current bunch in power ("the Harper Government"--His Highness sent a memo to the entire civil service after winning a majority election informing them to use that term in all press releases, not "the Government of Canada" as had been done pretty much forever) I would be surprised if it hasn't gone this way.
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

Berlin-Gus wrote:Community Mail Boxes are a large group of mail boxes located throughout a community. Postal patron's need to go to them to fetch their mail rather than a mail carrier dropping mail of at the patron's house.
I remember when these were brought in, in the 1980s. New housing developments had them installed as part of the construction of the neighbourhood--harder to put them on older streets where there might not be space, unless you appropriate a big chunk of the front yard of someone's house, and who wants this ugly 'street furniture' outside their living-room window.

"Supermailboxes" they were/are called..."Steal boxes" is a nickname I've seen commenters on CBC use. Apparently easy to break into. The whole front swings open to allow the "postie" to fill the boxes"...so a crook with a crowbar can come along, pry it open, grab all the mail and be off.

There might be a bit of a run on PO Boxes if a lot of people don't like these community boxes.
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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

In Canada currently, there is a serious issue with older (non-P) stamps not being cancelled at sorting plants. It has been suggested to me that the technology for the sorting process in actually found in the printed P on the stamp (I don't know if there is a special tag or something else contained in the ink that the sorting machines read) and the machines have been set up to only register these stamps for the canceller to be applied.

If this is in fact the case, then the withdrawal of all current P stamps would lead to a "guess" that the next round of stamps issued by CanPost will have different technology to allow them to differentiate between .63 cent P stamps and any new .85 cent or $ issues and "alter" the premise that their earlier P stamps would be valid forever at current rates.

As losing money has become the norm for CanPost and this round of decision-making is all about the optics of saving money, I don't doubt for a minute that they have a plan to stem the possibility of "stocking up" on original P stamps. The more I read about the coming changes to CanPost, the muddier the waters become.

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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

librarianc wrote:If this is in fact the case, then the withdrawal of all current P stamps would lead to a "guess" that the next round of stamps issued by CanPost will have different technology to allow them to differentiate between .63 cent P stamps and any new .85 cent or $ issues and "alter" the premise that their earlier P stamps would be valid forever at current rates.

As losing money has become the norm for CanPost and this round of decision-making is all about the optics of saving money, I don't doubt for a minute that they have a plan to stem the possibility of "stocking up" on original P stamps. The more I read about the coming changes to CanPost, the muddier the waters become.
Can't they just put the existing P stamps back on sale come March, at the new price? Seems they actually had their thinking caps on for a moment and realized the obvious, that people would all rush to stock up and beat the 30% jump.

In the meantime, what are they selling at post offices? The latest commems that are inscribed P? What about Xmas stamps?
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Re: Canada Post to phase out urban home mail delivery

Post by Berlin-Gus »

As far as I know there were no "P" Christmas stamps. They were denominated 63¢. That should have been our clue right there that something was coming down the pipe!
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Re: Canada Post to phase out urban home mail delivery

Post by Global Administrator »

I can supply at face, 1355 x "P" stamps (C$0.63c each) In different formats, some coils, sheet stamps, s/sheets and booklets.

If anyone wants them let me know FAST!
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Re: Canada Post to phase out urban home mail delivery

Post by Finchley Chris »

Excuse my ignorance, but what is a "P" stamp? :? :oops:

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Re: Canada Post to phase out urban home mail delivery

Post by Berlin-Gus »

The "P" stamps (permanent value) are Canada's N.V.I. or "Forever" stamps.
Gus

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Re: Canada Post to phase out urban home mail delivery

Post by Finchley Chris »

Thanks. :)

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Re: Canada Post to phase out urban home mail delivery

Post by Ken Lemke »

With HST (Harmonized sales tax) of 13 per cent, the full cost of a domestic stamp will be $0.96 unless you just buy one and then it will be $1.13.

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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

JaceStamps wrote:On a side note, the post offices and Canadapost website took all the "P" rate stamps off sale this morning. Which explains why the NHL and Christmas stamps have a 63cent value on them.
Those NHL stamps are going to see a lot of use. And Xmas commems will be even more common than a normal year. :roll:

I tried the website just now for fun to see what can be bouht. Click on any P stamp, and they come up with "this item is no longer available", even bog standard defins. Then the page says "may we suggest..." and they give you USA and Int'l rate stamps. Well, come next March, a current USA-rate stamp won't much overpay a domestic letter (I'm shocked to see it's $1.10 to the USA now; I remember the days when it was IIRC 5cents more than the domestic, ie. 42 v. 47).
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Re: Canada Post to phase out urban home mail delivery

Post by aethelwulf »

It was stated in a study awhile ago that Canada has the highest mobile-phone rates of any country in the OECD ("the developed world" basically). Now we'll have postage rates also pushing for that distinction.

Let's see unions argue for big raises to compensate for this (of course union bosses will conveniently ignore all the "I only send 2 letters a month" comments from people :roll: ).
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Re: Canada Post to phase out urban home mail delivery

Post by AMark »

If anyone is looking to purchase "P" stamps, some of the local convenience stores carry them. They don't stock large quantities but, you can always grab a few booklets while the stamps still cost 63¢.
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Re: Canada Post to phase out urban home mail delivery

Post by Stewie1980 »

After march 31st I will not buy Canadian new issues anymore.

I allready bought less and less every year because in my opinion new Canadian stamps are getting uglier...

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Re: Canada Post to phase out urban home mail delivery

Post by BarryM »

Stewie1980 wrote:After march 31st I will not buy Canadian new issues anymore.

I allready bought less and less every year because in my opinion new Canadian stamps are getting uglier...
Everyone is entitled to their opinions of course, and beauty is in the eye of the beholder, but I think that a lot of the issues of the last decade look a lot better than many of the stamps Canada issued in the 60s and early 70s.

Certainly there will be collectors that use 2013 as the stopping year for their collections. Between the cost going up on new stamps and probably some outrage that is going to erupt over the sudden withdrawal of stamps leaving many collectors unable to complete their 2013 collections, it is not a good time to be collecting Canada new issues. Sadly, I'm assuming that Canada Post's executives are more concerned about trying to find a way for the organization to survive than the impact on collectors.

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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

BarryM wrote: Sadly, I'm assuming that Canada Post's executives are more concerned about trying to find a way for the organization to survive than the impact on collectors.
I doubt CanPost exec's ever considered collectors.......unless it was how can we get more revenue from them

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Re: Canada Post to phase out urban home mail delivery

Post by Stewie1980 »

librarianc wrote:
BarryM wrote: Sadly, I'm assuming that Canada Post's executives are more concerned about trying to find a way for the organization to survive than the impact on collectors.
I doubt CanPost exec's ever considered collectors.......unless it was how can we get more revenue from them

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Re: Canada Post to phase out urban home mail delivery

Post by AMark »

Canada Post unveils Five-point Action Plan

Plan will return system to financial sustainability by 2019 and ensure continued role of enabling trade and commerce

Today, Canada Post unveiled five initiatives that together will form the foundation of a new postal system designed to serve busy Canadians and meet their changing needs for postal services. It will also open new opportunities to businesses that are redefining how they connect and serve customers in an increasingly digital world. These changes will begin taking effect in the new year.

This comprehensive plan can be achieved without any changes to the Canadian Postal Service Charter. The integrated plan’s five main initiatives are:

1. Community mailboxes

Over the next five years, the one third of Canadian households that receive their mail at their door will be converted to community mailbox delivery. This change will provide significant savings to Canada Post and will have no impact on the two thirds of Canadian households that already receive their mail and parcels through community mailboxes, grouped or lobby mailboxes or rural mailboxes. Community mailboxes have advantages for busy Canadians as they offer individually locked mail and small packet compartments as well as locked compartments for securely receiving parcels. The initial neighbourhoods slated for conversion in the second half of 2014 will be announced once plans are finalized. The transition is expected to take 5 years to complete on a national scale.

2. A new approach to pricing Lettermail to take effect March 31, 2014

Canada Post will introduce a new tiered pricing structure for Lettermail mailed within Canada, which will better reflect the cost of serving various customer segments. Under these changes, the majority of Canadians, because they buy stamps in booklets or coils, will pay $0.85 per stamp, with discounts for customers that use the mail most. The minority of consumers who purchase stamps one at a time, which represents an estimated 2 per cent of stamp purchases, will pay $1 per stamp. The average Canadian household purchases fewer than 2 stamps per month. These stamp price changes will take effect March 31, 2014.1

3. Expanding convenience through postal franchises

Canada Post will strengthen its retail network by opening more franchise postal outlets in stores across Canada. The company will partner with local retail businesses that are conveniently located in the communities they serve and offer added benefits, such as better parking and longer hours. This will allow busy Canadians to do more shopping in one place. Canada Post will also continue to align its corporate post offices to customer traffic patterns.

4. Streamlining operations

Changes to internal operations will make for a more efficient flow of parcels and mail through the network and to the customers. These changes are driven by technology (such as faster computerized sorting equipment), consolidation (such as processing mail and parcels in a central location) and providing more delivery employees with fuel-efficient vehicles, so the same employee can deliver both mail and parcels. Improved operations will yield cost-effective and more reliable delivery to Canadians, along with better parcel tracking capabilities.

5. Addressing the cost of labour

Canada Post is changing its business model and, as a result, will require fewer employees to serve the future needs of Canadians. With its current labour costs, Canada Post has a much higher cost structure than its competitors in the private sector have. This is simply not sustainable. The company will continue to bring the cost of labour in line with its competitors through attrition and collective bargaining over time. The average age of current employees is 48 and Canada Post expects nearly 15,000 employees to retire or leave the company over the next five years. This is more than enough to allow for the reduction of between 6,000 and 8,000 positions, mainly through attrition. Canada Post will also take the necessary steps to permanently address the sustainability of its pension plan. A leaner workforce will create a more flexible and competitive Canada Post, able to respond quickly to the changing marketplace.

Canada Post has a mandate to fund its operations with revenues from the sale of its products and services, rather than become a burden on taxpayers. With the increasing use of digital communication and the historic decline of Lettermail volumes, Canada Post has begun to post significant financial losses. If left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers. In April 2013, a Conference Board of Canada study projected a financial loss of close to $1 billion by 2020 unless Canada Post makes fundamental changes to its business. A projection of that magnitude was directionally consistent with Canada Post’s own projections.

The implementation of this plan means Canada Post can return to financial sustainability by 2019. Once fully implemented, four of the five initiatives are expected to generate financial benefits with an estimated combined worth of $700 million to $900 million per year.2 Those figures do not include the significant annual savings expected in labour costs and from restructuring the pension, because these are yet to be addressed through future rounds of collective bargaining. The range in the combined benefits forecasted reflects the need for more detailed planning and the difficulty of accurately forecasting the pace at which Lettermail volumes will erode. Canada Post has factored in significant erosion.

The Government of Canada has informed Canada Post of its intent to provide temporary pension relief from the need to make special payments, including solvency payments estimated at $1 billion in 2014 alone. Along with the new Lettermail pricing, this measure will address the immediate need for additional liquidity by mid-2014, which was outlined in Canada Post’s most recent financial reports. During the relief period, Canada Post will act with urgency to restructure the pension plan in order to ensure its long-term sustainability.

The postal service of the future will reflect and serve Canadians’ new postal needs. As more people began to communicate and manage their household bills online, Lettermail volumes declined sharply. Yet as more people shopped online, parcel volumes shot up. This dramatic shift is creating a pressing need to manage a greater number of parcels and less mail with more valuable items. (These items include credit and loyalty cards and government-issued cards and licences.) This shift provided clear direction to Canada Post and the many businesses looking to redefine customer experience in an increasingly digital world.

With this plan, Canada Post will be in a better position to be the essential enabler of remote trade and commerce that Canadians and Canadian businesses can count on for years to come.

To read Canada Post’s Five-point Action Plan or to watch a short video overview, please visit canadapost.ca.

About Canada Post

Canada Post is the country’s leading provider of electronic commerce and customer communication solutions. It reaches more than 15.3 million addresses, operates the country’s largest retail network, and offers affordable and reliable service with convenient pickup and return options for online shoppers. Together, Canada Post, Purolator Inc. and SCI Logistics offer market-leading end-to-end solutions for e-commerce shippers by leveraging the assets and expertise of the Canada Post Group of Companies.

1. Pending regulatory approval, these proposed changes will be implemented March 31, 2014. The changes will affect letters from 0 to 30 g mailed within Canada: Those who purchase stamps in booklets or coils will pay $0.85 per stamp, up from $0.63 today. Businesses that use postage meters will pay a new discounted postal commercial rate of $0.75 (per letter 0-30 g). Mailers who prepare mail to reduce processing costs (known as Incentive Lettermail) will continue to benefit from prices that are lower than the proposed meter rate of $0.75 for 0-30 g. Single stamps will cost $1 each, up from $0.63. Canada Post estimates that only 2 per cent of all stamps are purchased as singles. The pricing for U.S., international and oversized Lettermail and mail weighing more than 30 g will also increase, and will typically fall in line with the new established pricing levels. However, unlike Lettermail less than 30 g within Canada, the pricing for these products will not include a uniquely differentiated booklet or coil price. Prices for parcels and for addressed and unaddressed advertising mail are not affected by the Lettermail increase. To assist in minimizing the effect of successive Lettermail rate increases, the basic domestic letter rate will be offered at $0.63 until March 31, rather than the regulated rate increase to $0.65 in January 2014 as per the five-year pricing plan that took effect in 2010.

2. Once fully implemented, the initiatives will contribute an estimated $700 million to $900 million per year to the company’s bottom line, broken down as follows:

Forecasted financial benefits (per year upon full implementation)

Community mailboxes – $400 million to $500 million

New approach to pricing Lettermail – $160 million to $200 million

Franchise post offices – $40 million to $50 million

Streamlining operations -$100 million to $150 million

Source: https://www.canadapost.ca/cpo/mc/aboutus/news/pr/2013/2013_action_plan.jsf
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Re: Canada Post to phase out urban home mail delivery

Post by philcovex2 »

The decision to pull all "P" stamps from sale at the Philatelic Centre and local postal outlets must be blow to those working in the profitable philatelic sales department. While I don't purchase many of their products, every now and then, I am attracted to an item. The Philatelic Centre is well run and provides excellent service. It must be difficult to tell customers that most stamps are not currently for sale. I spoke to a Philatelic Centre representative on the phone who sounded devastated.

I wonder how stamp collectors in other countries would respond to a similar embargo?

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Re: Canada Post to phase out urban home mail delivery

Post by philcovex2 »

I discovered that my local postal outlet was still selling "P" stamps and purchased a nice selection for my collection.

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Re: Canada Post to phase out urban home mail delivery

Post by librarianc »

philcovex2 wrote:It must be difficult to tell customers that most stamps are not currently for sale. I spoke to a Philatelic Centre representative on the phone who sounded devastated.
I dropped some parcels off to my local post office yesterday and all staff looked quite ruffled. I calmly asked if it had been a long day and they all looked up and didn't even crack a smile (this group is always so friendly and helpful).

I imagine that the end of local sorting and delivery will also affect other counter and back-room staff. It may be an uncertain time for many secondary CanPost employees just before Christmas.

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Re: Canada Post to phase out urban home mail delivery

Post by gavin-h »

AMark wrote:I was just at a PO and all the "P" Permanent stamps are no longer available for sale.
Is it just me that laughed uncontrollably at that sentence?

It's right up there with "have you seen the invisible thread?" :lol: :lol: :lol:

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