By Kwasi Gyamfi Asiedu

Copyright bbc

The sweeping changes announced by the federal government follows years of financial losses sustained by the postal service, which faces reduced demand and stiff competition from private parcel delivery services.

Procurement minister Joël Lightbound said on Thursday that Canada Post lost C$1bn ($717; £535m) last year and is on track to lose C$1.5bn this year.

“Canada Post is effectively insolvent, and repeated bailouts are not a long-term solution,” he said in a statement.

The proposed changes will see the closure of several post offices in areas that were once rural and give the service more flexibility to raise prices. The service could also reduce the types of parcels delivered by air and rely more on ground transportation to save costs.

One significant proposal will be ending home deliveries, which will see parcels delivered to community mailboxes instead of in front of people’s doors.

An estimated four million addresses still receive that service in the country.

“The goal, ultimately, is to save Canada Post,” Lightbound told reporters.

The postal workers union said the proposals “will only undermine public service” and not address the needs of customers.

Canada Post said it was “disappointed that the union chose to escalate their strike activity, which will further deteriorate Canada Post’s financial situation.”

“A national strike of any length will impact service to Canadians and businesses well after the strike activity ends,” it added.

In a statement on Friday, the Canadian Association of Independent Business warned the impact of the job action on the country’s small businesses would be “massive”.

“Doing this in the lead-up to the critical holiday retail shipping season is especially troubling,” it said.

Government social security cheques will continue to be delivered during the strike.

Last year, workers embarked on a weeks-long strike over pay and improved working conditions.

Negotiations on the pay dispute remain unresolved.