CANADA POST TO GET OUT OF FLYER BUSINESS
By Adnews Staff
The federal government has told Canada Post Corp. to stop delivering junk mail, but stopped short of telling it to get out of the courier business, for now. Public works minister Diane Marleau ordered Canada Post to stop sending out workers on contract to deliver junk mail and to look at stopping letter carriers from delivering junk mail. She also imposed a moratorium on the closing of any more rural post offices. The Canadian Direct Marketing Association agrees with the recommendations, as does the Canadian Newspaper Association. CDMA has 500 members who are responsible for more than 80% of the direct marketing activity in Canada. Newspapers have said that Canada Post was using its exclusive access to apartment mailboxes to deliver advertising which could be inserted into papers. Junk mail accounts for about $30 million in operating income for Canada Post. About 10,000 employees will lose their jobs as a result of the decision.