A Look at Canada Post’s Sick Leave

An examination of Canada Post’s present sick-leave program, its role in the postal culture, the problem of the lack of data, its weaknesses, and what initial step is required to make it properly work.

Reader note: this article was written when the old contract was still in effect and no longer applies to the present sick-leave program at Canada Post. It should be read for historical reasons only, not for present-day application.

There are no official documents that detail the annual cost, except unsubstantiated accounts that Moya Greene, ex-ceo of Canada Post has claimed that it costs $300 million annually.(1) How she arrived at this figure is unknown.

Judging by Canada Post’s insistence to change this program at the bargaining table, whatever the real amount is, must be significant.

It is also not known what the specific problems of the program are at this time. There is no public statistical breakdowns available for short or long-term absences, types of sickness, absence or injuries. Since there are no official documents, it is difficult to make a comparison to a similar occupation to see if Canada Post ranks higher or lower.

Neither does it contain information on whether the supposed $300 million are costs created for that year only, or portions are the cumulative continued costs from injuries or disabilities from prior years. This is a big unanswered question.

Over 40,000 employees of Canada Post are between the ages of 40-59 and the age bracket between 50-59 is the single largest group of workers.(2) Many of these employees have been doing physical duties throughout their careers. It is inevitable that injuries are going to occur and progressively continue to be aggravated or get worse over time.

It would appear that sick leave costs will be significantly rising because of the age factor and Canada Post is attempting to be financially pro-active in dealing with this.

The Human Resources and Skills Development Canada has statistics on the rate of injuries at Canada Post. It was 7.42 percent per 100 persons in 2007. It does not break down the difference between inside, outside or office workers at the Post Office nor for how long the injury lasted or why. It could be one day, or 1 year. The only other industry with a higher rate is being a longshoreman.(3)

The United States Postal System had an injury rate of 5.1 per 100 during this same 2007 period.(4)

The United States Postal System has a slightly less percentage of injury rates, but one must keep in mind the geographic area of the United States varies much more than our northern Canadian climate. The environmental variables are different as well as their work systems.

It is difficult to compare Canada Post’s injury rate with other couriers, and especially flyer delivery companies. These are transitory positions and rarely are employees able to continue economically with these jobs at middle age. Therefore it cannot be compared for injury rates.

32% of all sick-leave costs at Canada Post are mental health related.(5) Nobody officially has given a reason why, nor have any studies provided any clues on what factors may be contributing to this total at Canada Post.

Is this above the corporate norm in Canada? Don Drummond in a speech for the Psychology Foundation of Canada pegs mental health issues costing as much as 12 percent of a company’s payroll.(6) If this statistic holds true, Canada Post is well under the industry average. However, Canada Post figures that their percentage of mental illness is close to the business norm in Canada.(7)

But who are the most likely to claim mental health issues at Canada Post? Is it letter carriers? Inside workers? Is it more common with night-shift? None of these questions have been effectually documented nor has there been any effort from either the Unions or Management to rectify any contributing work factors to this health problem.

What is known is that the overall health and quality of life of the typical night-shift worker is significantly less than that of the letter-carrier. Letter carriers typically work days, Monday to Friday, whereas night-shift workers work 8 hours somewhere between 10 pm and 8 am, depending on location. These workers do not consistently have two set days off, sometimes they are broken into one day pieces throughout the week.

With the changes to new workflow patterns and infrastructure, it may take over 20 years before a night-shift worker can get a day position.

Night shift is most likely where the majority of mental health issues are being produced

One would think with the Postal Transformation underway, this would be one of the best opportunities to address such an issue with more day jobs and rotating shifts.

Mental Health is the cause of choice for Canada Post and established in October 2007, The Canada Post Foundation for Mental Health. Janie Randolph, Director of Canada Post’s cause of choice, has stated that, “two of the top five prescription drugs taken by its employees are for depression and anxiety. “Canada Post has productivity issues, we have absenteeism issues, and mental health–related pharmaceuticals are among the highest costs in our benefits program.”(8)

The Canada Post culture has embraced sick-leave for two other reasons. These reasons are a result of Canada Post not having an effective and systematic conflict resolution policy. Whether it is between employees themselves, manager to employee or manager to manager, their are no effectual conflict resolution steps in place.

In the present system one typically has to make a human rights complaint to an officer of the corporation for investigation which may take days, or months before any conclusion, if any at all, is made. Or if in case of a conflict between a management representative and employee, filing a grievance. This can take years to process. These systems are too large and bulky for most inter-personal conflicts which are seldom major in nature but the everyday trivial problems of human co-existence.

Instead the sick-leave policy is used as an alternative. One way an employee typically expresses his frustration in unresolved conflict is to take one or more days of sick-leave as a time-out. Instead of being angry or fighting, the person stays home until the anger has abated. This unofficial policy has saved many confrontations.

There are also protest sick-leave days. This is used by some employees who feel forced to change or do new duties without any concern by the management to their physical or mental well-being. When experienced workers are missing, it often takes 1.5 to 2 newer workers to do their job. Often management backs off after this protest and treat workers who do this with a little bit more care and concern, not so rude and abrupt as before. This is not always the case, often protest sick-leave results in no change towards the employee, but the employee feels less frustrated and has a channel to vent his or her frustrations.

If there is no change in the conflict resolution protocol and the sick-leave is amended so that protest and cool-down days are removed, there will be a significant increase in physical violence within Canada Post.

Last of all there is simply abuse of sick-leave days. The Collective Agreement is designed with the moral understanding that everyone wants to work hard and contribute to the best of their ability. When this is not done, the Agreement can easily be abused because there are no safeguards against people who, for whatever reason, don’t want to work. The majority of workers follow the moral law of the agreement, but a few, which is not unlike any other corporate institution, take advantage of this. The big difference between Canada Post and any other institution is that co-workers are prohibited from safeguarding the collective agreement from this type of abuse. Any confrontation towards a fellow employee on the perceived misuse of sick-leave can constitute harassment and a human rights complaint can be filed. Therefore this type of abuse is left unchecked. Most employees know the irreparable harm this causes within the corporate morale, and visually see how managers have to turn their back on such behaviour and cannot discipline.

There has to be a mutually agreed mechanism put into place where it cannot so easily be taken advantage of.

The creation of a clear-cut and transparent document on the nature, type and duration of sick leave would go a long way in developing a proper strategy for managing this area. It would foster a positive dialogue between the corporation and its employees and could ultimately lead to solutions that both parties could be happy with.

(1) It has flowed around the internet and in a number of articles, such as, http://www.workink.com/articles.php?prID=11146&pgID=11159&art=386 but these articles do not name the source and therefore cannot be completely construed as accurate but it is the only source available so far.
(2) Canada Post Pension Plan 2010 Annual Report. Pg. 7
(3) http://www.hrsdc.gc.ca/eng/labour/publications/health_safety/pdf/oiacfje.pdf
(4) http://www.usps.com/strategicplanning/cs07/chpt3_008.htm
(5) http://www.ontario.cmha.ca/network_story.asp?cID=117085
(6) http://www.cbc.ca/news/health/story/2009/11/25/canada-economy-mental-health-cost.html
(7) http://www.canadapost.ca/cpo/mc/aboutus/news/pr/2007/2007_oct_news_cause.jsf
(8) http://www.ontario.cmha.ca/network_story.asp?cID=117085

Traditional and Modern Canadian Letter Carriers

A general introduction to the typical traditional vs upcoming modern letter carrier in Canada and its economic impact.

A letter carrier is a word typically used for those who deliver by foot in urban areas as an employee of Canada Post corporation.

Letter carriers at Canada Post deliver letters, magazines, registered, priority or parcel items that are under 3lbs, magazines, and flyers.

Each letter carrier is designated a route. Each traditional route roughly consists of 400 to 1000 points of call. Points of call mean each mail receptacle on a house, apartment, business, community mailbox etc.  For example, a house would count for one point of call, an apartment with 250 suites would have 250 points of call.

A complex mathematical calculation of distance x volume x coverage x average walking speed and a number of other important variables are used to arrive at an average 8 hour day. This formula has been in use and refined for well-over 30 years.

Each letter carrier starts his day at his mail sorting workstation. When he or she arrives, there is typically about 1200 pieces of machined letter mail, 250 pieces of letter mail that needs to be hand sorted, about 300 pieces of magazines and oversized envelopes that need to be hand-sorted, and also about 10 small packets, 10 traceable items, and a number of flyers that have to be hand collated.

This is just an average and it varies considerably between route.

When it comes to flyers for collation, there are wide differences between regions and even routes. In Winnipeg, some areas can average 4 sets of flyers per day per year, while other poorer areas are less. In Vancouver, this number can average over 10-15 sets per day. It is not fair to give an average.

The collation and delivery of flyers is not really calculated in the 8 hour formula. Sometimes five to ten minutes are allotted for management of flyers in the formula but not often. Letter Carriers are instead paid by the piece. It is usually around 2 cents per piece.

If, say, it takes a letter carrier 30 minutes to collate ten sets of flyers, and this extra time puts him or her in a situation that makes the work day 8.5 hours long, one cannot ask for overtime or extra hours. It is considered lost time or paid for by the per piece agreement. Some strongly do not like the idea of flyers for this reason, on the other hand others find this a good source of alternate revenue.

Also flyer weight really adds to the typical day. Canada Post letter carriers are not to carry more than 15.9 kilos (35 lbs) at any given time. However, because flyers are not in the mathematical formula, they have been exempted from the weight formulation. For example, the typical letter carrier at Christmas can be carrying 15.9 kilos of mail, and required to carry an additional amount of flyers which combined with regular mail can easily weigh over 22.73 kilos (50 lbs) at any given time.

Letter Carriers are given on average 1.5 to 2.5 hours per day to sort and organize all their mail items. This includes bundling all mail items and putting them into relay bags. These relay bags are then marked for delivery to a relay box on the letter carriers route. These are the neutral grey boxes one sees by many corners or near apartments. These relay bags are delivered by a driver.

When a letter carrier has finished a block, he or she goes to the relay box, empties the contents from the relay bag into the satchel and goes on to the next block or apartment etc. This can be repeated 6-12 times on a typical day.

There are many ways a letter carrier can get to his route. First of all, if the route is close enough to his or her postal station, one can walk. If it is kind-of-close, Canada Post will pay for the bus ride to and from the walk. If it is getting pretty far, Canada Post will pay the taxi fare. Canada Post has a policy of paying for gas if one uses their own personal vehicle for getting back and forth, but there are some caveats to this, so few take advantage of that. Many however, use their own cars at their own cost because of convenience and time savings.

Many letter carriers are miffed at why Canada Post paid for employees to have a new corporate vehicle along with company gas when this was supplied pro-bono by the employee in the past.

Letter Carriers traditionally do not deliver parcels. A unit called UTS, a motorized unit, specifically deals with parcel pick-ups and drop-offs.

All the mail sorted by the letter carrier is typically combined. That is, the oversize, non-machinable, and machinable letter mail and anything else that will fit in a sortation case are all harmonized together in one unit. This is the most efficient way.

In the new way, letter carriers are not to sort the machined mail. This is already done by a machine beforehand. The oversize and stuff the machine can’t read, still have to be sorted by hand. This is sorted and collated separately from the machined mail. The letter carrier is then asked to combine them while delivering. The machined mail is to be held on the left hand, and all oversize and non-machined mail is be held on the forearm of the same left arm. The right hand is then to combine them together.

The problem with the two bundle system is that it never calculated two important variables; flyers and environment. The new system requires a large portion of letters carriers to deliver in the dark, the two bundle system makes it more difficult to do this. Looking twice instead of once at an address takes more time. The two bundle system was imported from the United States Postal system where flyers are not an integral part of the job. How would one carry two bundles plus deliver 3-10 sets of collated flyers? There is no easy solution except that it takes longer.

Parcels are added for the modernized letter Carrier to deliver.

The time saved on sorting is theoretically to be added to the time delivering. Canada Post roughly believes an hour of sorting time is saved on every route and typically adds 250 to 400 points of call to each route.

However, because the two bundle system adds an extra two seconds or so to every delivery point, the requirement to deliver all the parcels in the given route, delivering in the dark which increases time between each point of call, loading and unloading a vehicle, driving and parking a corporate vehicle, it severely reduces any time savings that is anticipated.

It will be interesting to see if all these moves actually save any money, or keeps Canada Post in the same economic situation which in the past decade has just been barely breaking even. Canada Post claims they will not turn any profit until 2017. This time however, with so much money fixed into infrastructure cost, rather than having the flexibility of adding or deleting personnel depending on volumes, it is a precarious time in the history of this corporation.

A Social Look at Canada Post

An employee’s observation of Canada Post from a social and relational point of view. Is it healthy or is it lacking?

As a previous employee of a startup advertising business for over ten years, specializing in publishing leadership and time management books,  and before that many stints within charitable organizations, the opportunity to work at the Post Office was a god-send. It would be a great place to overcome burn-out, spend time with family, and give time to publishing a book.

Little did I know how completely opposite the Post Office can be when it comes to respect in the workplace.

One must realize that Canada Post is not unlike any other Canadian large corporation which consists of good, hardworking people that want to do their best for both themselves and others around them. Of course there are a few bad apples in any corporation. Canada Post has them too, but not any more than any other company.

However the difference between Canada Post and other similar organizations is their lack of internal mechanisms to solve inter-personal conflicts.

The problems are not just manager to employee but manager to manager,  and employee to employee.

Everyone has their stories, but for me five stand out. Firstly, while in the first 3 months as a postal worker, I had an industrial accident with a small forklift. I cried out for help and saw a number of employees 30 meters away. They looked and did nothing.  Two finally after a long pause came but said they were hesitant to do so. It was because one of the other senior employees told them not to. “It is not our responsibility,” he told them.

No management official made an official report of the accident and what safety measures could have been done to avoid a similar problem. I shared with the local union leader of the accident, and how no-one wanted to assist and he questioned, “was there any injury?” “No,” I replied. “Then you shouldn’t be talking to me about this.” He refused to discuss anything after that.

On another occasion, a woman was stuck in the freight elevator. She was pressing the alarm button, screaming and pounding the walls to get someone’s attention. The freight elevator sometimes had towering heavy loads. They surrounded the operator with only a shoulder’s breadth to stand in. It was easy to scare almost anyone.

It broke down often, and so the buzzing of the alarm was largely ignored. It was the pounding, and screaming that got my attention. She was panicking and needed someone to assist and tell her everything was going to be OK. It couldn’t come from me because I am an employee who had no power to get the proper tools and people in place. She needed a corporate official to assure her. A supervisor and trainer were nearby at a desk and I notified the supervisor of the problem requiring immediate attention. The supervisor grabbed a walkie-talkie and requested technical services to attend to the elevator and continued on with her conversation with the trainer. Both refused to go to the elevator shaft and re-assure the women of the situation. Technical services did not think it a critical issue and were tardy in their response. The woman was crying. I asked the supervisor again to do something, even talk to the woman. Neither bothered to get up from their seats and attend.

Days after the situation, I placed an official complaint with health and safety about the supervisor’s lack of respect for this employee’s emotional welfare. The person in charge of the investigation concluded, “You said it happened this way, the supervisor said it that way, who am I to believe?” He shrugged his shoulders and walked away.

Managers can be very aggressive and often hostile in their everyday conversation. Sure employees are like this too, but that is to be expected, but managers should be held to a higher standard. For example, one day a group of management staff were gathered around a work area that I needed to get to. Out of respect, I waited until they would move. One of the leaders of this group saw me standing and said in front of the rest, “Charles, why didn’t you f#*!in tell us to get out of the way! Just say f#*!-off and we would move!”In other words, the manager was saying that to be rude and abrasive is an acceptable norm.

On another occasion I asked a superintendant about what appeared to be a peculiar duty that seemed contradictory to the Canada Post corporate manual. He answered in a totally paternal and angered voice, “I am giving you a direct order to to do this!” “But why?” I said and then added, “it appears what you are saying is not in accordance with the manual.”He once again responded, “Because I have told you to.” The intonation and the stern voice insinuated that even questioning is insubordination. I am not here to question, only here to do whatever I am dictated to do.

It turned from what was approached as a sincere dialogue quickly transformed into a confrontation. This was my first conversation with this person and hopefully the last.

An older female letter carrier asked me why a co-worker of mine pretended to kick her in the head. She was coming into work and was passing by this postal clerk who was leaving in the opposite direction after a full-nights work. Although she didn’t know him, she said hello as a king gesture. The man came close to her and replied with a pretend kick to the head. It shocked her and she came to me later asking me why this man would do such a thing. I couldn’t give an answer except that he was strange. We both shrugged our shoulders silently agreeing that Canada Post would do nothing about it.

It seems like an unreachable goal to develop here a culture of respect. However, it can and has been done in certain instances. One supervisor, albeit a new one at the time, whose background is from an entrepreneurial family, took it on her own initiative to establish this culture in her department. On at least one occasion the highest recorded output of machinable mail ever in that department over an 8 hour period occurred under her watchful eye.

This demonstrates that a culture of respect not only gives dignity to everyone but also pays economic dividends.

Because there are no internal mechanisms, sometimes hostile confrontations or reactions become apparent. Other times passive aggression becomes a regular occurrence. Many conflicts are originally trivial in nature, but because they are never addressed, tension grows. Often most forget the original problem and the anger and tension are the only remains that one can recall.

This, in my mind, is the number one issue in Canada Post’s future.

Canada Post and the Cost of Delivery

A serious discrepancy in Canada Post’s 2009 Annual Report on how much it costs to deliver to every point of call.

How can such a large corporation with two external auditors, the Auditor General of Canada and KPMG, make such a major perceived error?

As per requirement by the Canadian Postal Service Charter, Canada Post outlined in its annual report that it delivered to 14,874,358 points of call in that one year period. This is every home, apartment and lobby box, group or community mailbox, postal box, general delivery or rural mailbox combined. They have also provided a breakdown of how much it annually costs to deliver to each point of call:

  • $253.00: Door to door
  • $119.00: Apartment or Lobby box
  • $100.00: Group Mailbox, Community Mailbox, Kiosk
  • $63.00: Postal Box General Delivery, etc.
  • $168.00: Rural Mailbox

This averages out to $140.60 per point of call per year. Canada Post stated in its Annual Report that the average was $156.00. Why Canada Post’s average number is higher than the actual math is not known.

Another mathematical problem is the total yearly sum of all these points of call versus Canada Post’s yearly revenue. There is a non-described discrepancy between the two. The sum Canada Post claims to have cost them to deliver to every point of call over a one year period adds up to $2,314,034,142.00 – far short of the $5,840,000,000.00 that Canada Post claimed as the 2009 annual revenue for Canada Post only (not other parts of its ownership such as Purolator and other sub-companies).

This sum includes payments towards the pension plan shortfall according to the Annual Report (page 28). This suggests all expenses are included in this cost breakdown.

Why a difference of $3,525,965,858 billion dollars? If it cost Canada Post over 2.3 billion dollars to deliver the mail, and they have an annual revenue over 5.8 billion, where is the other 3.5 billion going to?

Could it be Canada Post made 3.5 billion dollars in profit? Probably not, other portions of the Annual Report demonstrate a break even or close to loss point.

Canada Post nowhere has given an answer to such a discrepancy.

The current numbers provided by Canada Post on the cost to each point of delivery are useless for any real calculations. It calls into question the rest of the Annual Report as well. Are the numbers in other parts of the document as poorly edited or oblique as this?