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The report, called “The Future of the Postal Service in Canada” was commissioned by Canada Post last year.

In 2012, Canada Post had a net income of $98-million, but that was the result of $152-million worth of adjustments due to lower future sick leave and health benefits for its employees. Without the new collective agreement, it would have posted a before-tax loss of $54-million. In 2011, Canada’s postal service posted a loss of $253-million before taxes — its first loss in 16 years.

In 2013, Canada Post also expects a “substantial financial loss” due to a steep drop in letter volume.

Even as e-commerce grows in popularity and parcel deliveries grow, letter mail still represents the bulk of its business.

Jon Hamilton, spokesperson for Canada Post, said it welcomed the “stark analysis” and options put forward for changes to its business model

“Even with the changes we’ve made to be more efficient, we’re still staring down a billion-dollar loss by 2020. So clearly, something has to change. But we can use this opportunity to build a Canada Post for the needs of the future,” he said.

Mr. Stewart-Patterson said eliminating door-to-door service would have the largest financial impact, potentially reducing the expected 2020 operating deficit by $574-million.

“I know that’s the enduring image, of the letter carrier coming to your door. But that’s actually the reality today for a third of Canadians,” he said. “And for those getting it to the door, that costs more than twice as much as going to a community box. So there’s some big savings to be had.”