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.

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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)

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Michael Warren’s Continued Call on Canada Post’s privatization

Michael Warren, a former CEO for Canada Post from 1981 to 1985 once again says yes, but with a twist.

His position was outlined in the CBC Radio program, The 180, on June 9th, 2013. The complete radio broadcast can be found at CBC’s website

The discussion goes beyond privatization and covers the present and future health of Canada Post. He provided a wealth of information.

He believes Canada Post cannot be sold because it is in a negative balance position.

“… Canada Post may be beyond privatization in the sense that its net worth is under water… its… I think would be very difficult to privatize right now.”

He also added a very important business insight at the end of the conversation:

“Once you get into a downward spiral, which I think Canada Post has been in and not seen to be in by man Canadians, cutting service, I know from experience in [jer..] business and some other fields, you gotta be careful when you cut service because you can put your business into a death spiral that you never recover from, particularly if you are not offering a leading edge service or product.”

How Canada Post can Save a Bundle

How a slight shift in ideology could save Canada Post over $18 million annually, and win the respect of its network of letter carriers across Canada.

Canada Post, since the fall of 2011, has been introducing new equipment, buildings, and delivery methods to its national distribution network.

One of the most controversial, and least cost-effective strategies is the two-bundle system. This idea was borrowed from the United States Postal Service where its letter carriers have been using this system for years. However, this name is a misnomer for Canadian Letter carriers because they are required to deliver flyers to a third of their routes every day. So it is actually a three-bundle system. Today, sorting and consolidating mail into a one bundle system at their workstations is not permitted, and can potentially lead to a suspension.

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