Regular mail, not parcels. Canada Post would be committing suicide if they stopped delivering (or attempting to deliver) parcels to the door. I much prefer a community mailbox to at door delivery -- STAY OFF MY LAWN!
Edit #1:
As I went to the Canada Post website to buy a couple dozen stamps before the price goes up, I noticed they posted their plan: http://www.canadapost.ca/cpo/mc/assets/pdf/aboutus/5_en.pdf
Sounds like a move in the right direction to me since they are losing money -- cut costs, address the much higher wages than the competition problem, and cut the work force through attrition rather than layoffs.
Edit again: now it seems like the denomination free stamps are already removed from the website, so stocking up is pointless -- those bastards!
Union is what caused them to slowly bleed to death if nothing was done. Stark reality has set in.
Gone are the days when employees would work till 1pm and collect 8 hour a day "ridiculous wage" pay checks.
A private company would have put the kibosh on this years and years ago.