On January 24th, 2018, the Canadian Government finally tabled a response to the Canada Post Review. The announcement was posted after a two-phase process begun in May 2016.[1]
The initial Review did not come as a surprise, especially after Canada Post became a central part of the Liberal election platform. The Review documents, especially the first phase process, was thorough and included a lengthy and in-depth process highlighting many issues that the Government needed to address. Unfortunately, the Government response to all this work was a letdown. Their response was only 421 words long, lacks any substance on the serious issues confronting Canada Post, and fails to provide a clear roadmap.
The following are the five summary conclusions found in the Review:
- “Align the interests of management and Labour;
- Update the Canadian Postal Service Charter to meet the demands of the 21st century
- Modernize Canada Post’s defined benefit pension plan
- Focus on excellence on its core competencies and generate additional revenue in the digital markets; and,
- Continue the moratorium on community mailbox conversion and reinstate home mail delivery services.”[2]
All but one point was glossed over by the Government in their response—door-to-door delivery. The Liberals campaigned during the election for the restoration of door-to-door delivery—a service that was being phased out for conversion to the cheaper alternative of community mail boxes. Canada Post anticipated the total cost savings of converting all to CMBs were anticipated in the annual $400 to 500 million dollar range.[3]
When the Liberal Government took power, they quickly realized that Canada Post was in a perilous financial position and could not fulfill the door-to-door election promise without either infusing taxpayer money or privatizing some or all of Canada Post. There was no easy political solution. Instead, they bought time by announcing a review to look for alternative options to rescue Canada Post.[4]
The Government response to the two-year study was not the restoration of door-to-door delivery recommended by the Review. Rather the Government maintained the status quo from the day they halted any more conversions to CMBs. Those who had their mailboxes converted to CMBs before the mandate will continue to have CMBs, while those who have door-to-door will continue to have this option.
The Canadian Union of Postal Workers has mixed emotions over the Government response to the report. They were encouraged by the Governments willingness to investigate new areas for business expansion, but discouraged by the Government’s lack of will to solve Canada Posts major problems.
“Instead of acting on these recommendations, the government has passed the buck to a renewal of Canada Post’s board of directors.”[5]
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[2] http://www.ourcommons.ca/DocumentViewer/en/42-1/OGGO/report-4/page-33#chall
[3] https://canadasmodernpost.wordpress.com/2016/04/24/the-community-mailbox-financial-fiasco-at-canada-post/
[4] http://www.cbc.ca/news/politics/foote-canada-post-mail-delivery-1.3565888
[5] http://www.cupw.ca/en/campaign-canada-posts-future-goes-bargaining-table