Options Available to Avert Canada Post Cash Crisis
CUPW responds to Canada Post Corporation Q2 Report
Media Release – August 28, 2013
OTTAWA–The Canadian Union of Postal Workers (CUPW) once again calls for an open discussion about the financial future of the postal service. The Canada Post Group of Companies has posted a loss before tax of $104 million for the second quarter of 2013, including a loss of $72 million from postal operations. The report forecasts a cash shortfall for Canada Post Corporation (CPC), possibly as soon as 2014.Postal Workers see that the lettermail decline is real, though its rate has at times been exaggerated. At the same time, the pension problems are solvable –the solvency deficit is a problem because of federal government funding requirements, while the fund is fully funded on a going-concern basis.
“Even once we find a solution for the pension fund.” says Denis Lemelin, National President of CUPW, “we still need to work out how Canada Post’s operations can remain self-sustaining in the long run. That will take imagination and input from all stakeholders, including the public and postal workers. It’s time Canada Post took our suggestions seriously.”
The exclusive privilege on lettermail is providing a declining portion of Canada Post’s revenues, and in the future more of its revenue will come from competitive segments of the business. Parcel post is a growing part of mail operations, and the union continues to press for other service expansion, like an exploration of banking services at post offices.
Instead of just making cuts and closed-door consultations, postal workers demand that Canada Post consult actively with the public — its owners — and commit to listening to their concerns. A review of the Canadian Postal Service Charter is due. Postal workers want an open, public review process.