The loss of personalized postal service in the digital economy

The traditional image of letter carriers delivering mail on foot is out of step with the contemporary digital economy. Suppliers today are less dependent on face-to-face interactions than ever before, swapping the personal provision of products and services with online offerings. Within this changing environment came Canada Post’s announcement in December 2013 that it will be progressively phasing out urban door-to-door mail delivery over the next three years.

Declining human resources

The elimination of 6,000 to 8,000 door-door delivery jobs jeopardizes the main thrust of Canada Post. Unlike private companies such as Cisco, which pioneered the replacement of employees with technology, scaling back on human labour at Canada Post may compromise its public duties.

Cambridge, Ontario resident Susan Dixon is adamant that Canada Post needs to follow through on these duties, especially the Canadian postal service charter’s guarantee to provide convenient access to mail. For Dixon, this strikes a personal chord. The mother of two has a 7-year-old wheelchair-bound son with cerebral palsy, which makes it difficult for her to travel several kilometers to community mailboxes (CMB) that are replacing door-to-door delivery.

“How will they monitor people with disabilities? They can’t expect people who can’t walk normally to get the mail. They have not thought this through,” says Dixon.

Public pushback

Although the plan has yet to be fully implemented, Canada Post converted around 100,000 addresses in 2014 and expects to switch over another 900,000 delivery points this year. Dixon is committed to halting the rapid conversion. Just two days after the move was made public, she began an online petition to protest the end of door-to-door delivery. The webpage has over 200,000 signatures supporting Dixon’s cause. Dixon will keep the petition open until Canada Post changes its decision.

Map of urban areas affected by door-to-door mail termination in 2014

Source: Canada Post

The DisAbled Women’s Network of Canada (DAWN) is also on board with Dixon’s petition. President Carmela Hutchison handled complaints this past winter from DAWN members who had trouble picking up their mail from CMB’s because of icy sidewalks and snowy driveways.

The discontinuation of the service outright is being met with considerable opposition, even with anticipated savings and over 10 million Canadian addresses already receiving mail at communal, centralized locations.

“It doesn’t matter whether you have a cognitive impairment, a developmental delay or a visual impairment, there will be devastating effects. There are people who can’t use keys or reach high. Everyone thinks this is a small issue until you’re in it,” says Hutchison.

Mailboxes remodeled: The 2014 community mailboxes accommodate new postal needs

 

The trade-off between personally delivered mail and Canada Post’s customer satisfaction is a financial one. According to the Conference Board of Canada, door-to-door delivery is the most expensive mailing method. By ending the service in urban areas, Canada Post is expected to shave $576 million off of its projected $1 billion 2020 operating deficit.

The discontinuation of the service outright is being met with considerable opposition, even with anticipated savings and over 10 million Canadian addresses already receiving mail at communal, centralized locations. Much like disabled persons, senior citizens predict that they will be disproportionately affected.

“These changes are probably not making us popular, but it’s not about being popular. It’s about being sustainable. Over time we will still continue to play a relevant role in peoples lives, just in a different fashion.”-Anick Losier

National Pensioners Federation president Herb John finds that this effect boils down to both compromised accessibility and the many social functions served by mail carriers.

“For a lot of seniors, Canada Post workers might be the only person they see in a week. It’s nice to have somebody stopping by. If something unusual is going on, they will recognize that,” says John.

Though Canada Post will cease its inadvertent provision of social services for the elderly, it is offering a series of remedies for persons who may be particularly disadvantaged. If needed, residents can request bigger mail trays, specialty easy-to-use keys and home mail delivered once a week.

These well-intentioned solutions have yet to put criticism of the plan to rest. Nonetheless, Canada Post’s director of media relations Anick Losier anticipates that in the long term, there will be little if any negative impact on the corporation’s consumer relations.

“These changes are probably not making us popular, but it’s not about being popular. It’s about being sustainable. Over time we will still continue to play a relevant role in peoples lives, just in a different fashion, “ says Losier.

Looming legal battles

Meanwhile, tensions have already peaked at CUPW. Earlier last month, CUPW launched a federal court case challenging the termination of home mail delivery. Along with two individuals and six groups representing retired and disabled persons, CUPW is arguing that the discontinuation violates the Canadian Charter of Rights and Freedoms. The court will examine Canada Post’s alleged violation of the right to equality for all, regardless of age and physical or mental disability.

If proven, this charter challenge could have significant consequences for Canada Post, which may have to ensure equal outcomes for everyone it serves. The federal government’s actions will weigh in heavily on the trial’s outcomes. Carleton University department of law and legal studies professor Leo Russomanno anticipates that as the owner of Canada Post, the government will have to demonstrate that it took the interests and needs of aggrieved parties into account.

Whether or not Canada Post is found guilty of the violation, CUPW national director Mark Evard foresees standards declining as door-to-door delivery drops off. Ultimately, it may undermine a humane national mail delivery system.

“This will change the nature of the service it provides. When you’re on a route for a certain period of time…you see when people are away, or if there is an issue…that service will be lost,” says Evard.

From a commercial perspective, Concordia University business professor Robert Soroka predicts that this service blow will be cushioned by generational factors, like the age of the population.

“We don’t look at a population as an aggregate. We look at it as segments. For an older 50 plus segment, there will be a negative impact. For younger customers, the impact will not be as significant,” says Soroka.

At the same time, Soroka concedes that with a mandate to serve the entire country, Canada Post could have cut costs by other means with fewer complications. This includes scaling back on prominent hockey rink advertisements that he says have little impact on its corporate and consumer brands.

An unresolved issue

For the moment, the gradual winding down of home delivery will take precedence over Soroka’s point about advertising. In spite of opposition expressed by numerous organizations, individuals and CUPW members, Canada Post is pressing ahead with CMB placements that have already taken over in urban locations like Oakville, Fort McMurray and Kanata.

Growing disapproval of the end of door-to-door mail delivery presents an issue that has yet to be tackled. The taxpayer-funded entity is, unlike many big businesses in the digital age, accountable to the public. For those who find the personalized service reductions inconvenient and potentially harmful, Canada Post is compromising its duty to serve citizens in an equal, fair and accessible manner.