charlesasullivan, Author at Canada's Modern Post

Canada Post President Defends Blueprint

In December, 2013, Canada Post’s President and CEO, Deepak Chopra appeared before a Canadian Parliamentary committee to defend his blueprint for Canada Post’s future. The blueprint is naturally supported by the ruling Conservative Government, and criticized by the NDP opposition. Paul Dewar, an NDP MP, spent 5 minutes questioning Mr. Chopra on the changes. Mr. Chopra refused to engage in answering any of the questions and instead chose to forward his vision of Canada Post through short quotes. The following is the actual exchange captured on television and re-transmitted on YouTube. Mr. Dewar comes across as a person with his own personal axe to grind. However, the response by Mr. Chopra is very indicative of the business model he employs, secrecy. He, as modeled by the majority Conservative Government, do not feel it is the duty of a public servant to be clear and transparent with the citizens on any major decision making.

A Review of Canada Post’s Five Point Plan

Canada Post’s Five Point Action Plan is the second iteration of the modern post business plan. The first version, which started in 2008, was unsuccessful and this new one adds the elimination of door-to-door delivery to bring it back to profitability.

This is not the typical business blueprint for future growth. It is a survival plan.

The Five Point Action Plan available at Canada Post’s website has no author, nor any endorsements by any leading corporate or government figures. Nobody, including the president of Canada Post, wants to take direct ownership for this document.

Canada Post and the Universal Service Obligation

How much money Canada Post is legislated to lose every year.

Canada Post is obligated under the Canadian Postal Service Charter to a uniform pricing structure for any mail services delivered across Canada.

Anyone will quickly notice that sending parcels and mail to remote places such as Rankin Inlet, Nunavut, or Hopedale, Labrador is going to cost more than any profit that could be generated out of these communities. And there are some rural and urban routes too, especially those that have a large transient population and low levels of income generation, that Canada Post would lose money on. However, legislation requires Canada Post to absorb these losses.

A Look into the Canada Post Corporation Act

The Canada Post Operation Act (R.S.C., 1985, c. C-10) and how it relates to the contemporary affairs of the Canadian Post Office.

It is puzzling that the Universal Service Obligation is omitted in the Act but clearly defined in the Canadian Postal Service Charter. The Charter states that delivery cost is to be uniform across Canada and is to be five days a week — though Lisa Raitt, the Minister of Transport, has suggested that delivery days is under review and may be reduced.(1)

CUPW Concerned About Canada Post’s Financial Health

The Canadian Union of Postal Workers (CUPW), the largest union representing workers at Canada Post, has serious concerns about Canada Post being able to sustain its daily operational expenses and pension obligations.

Denis Lemelin, National President of CUPW, outlined his concern in a September 2013 letter sent to Lisa Raitt, Minister of Transport:

“As you know, the debate on the future of the postal service, which we believe must be public, is of the utmost concern to us. That is why I am writing to you today about an issue that comes up in all of the Corporation’s interactions with the media: the pension plan. Canada Post states that its line of credit will be terminated in April 2014 and that it will have to resume special pension fund payments, which means it will no longer have enough money to operate.”(1)

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1. CUPW Asks Minister Raitt to Organize a Meeting to Discuss Pension Plan
2. See also the National Post article: Canada Post Poised to Lay an Egg Next Easter
3. There are dissenters within CUPW over this letter. See Pension Plan Discussions September 22, 2013