Canada Post Strike Update August

Update August 2, 4:14 pm

 

Dear Canada Post customer,

While we continue to talk, progress remains slow; but our resolve to reach tentative agreements without a work disruption has remained.

The postal system is open for business while negotiations continue. Mail and parcels are being processed and delivered across the country as normal.

Information related to negotiations can also be found at canadapost.ca/update, where you can sign up for email updates. We will continue to keep you updated on a regular basis as we have throughout this process.

Sincerely,


Serge Pitre
Vice-president, Sales
Canada Post Corporation
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Canada Post Strike Update August

Canada Post is offering a small pay raise to CUPW workers, they have also backed off to a degree on the idea of delivering packages in the evenings and on weekends by new part time hires (so they don't have to pay overtime to existing workers) and they've agreed to go to binding arbitration, (which I was shocked about when I heard....employers never come out well in binding arbitration settlements).

 

CUPW has made no concessions at all and scoffed at binding arbitration.

 

I'm not going to get into a discussion or argument with anyone on this forum about this labour dispute.  If you don't agree with me fine, state your viewpoint or say nothing but I will not be responding directly to anyone again.  I'm not taking sides in this dispute, i'm simply stating my opinion based on the events I have witnessed.

 

As I've said countless times, I was on the CUPW's side when all this began, I think Chopra should be ousted, but the behaviour of CUPW has made me favour them less and less as this drags on. 

 

But even that doesn't matter.......I just want this stupid issue to be resolved, I am sick to death of having to follow it and worry about it.  No company with a monopoly should be allowed to strike or lockout.  Binding arb should be the order of the day.  Always.  Anyone who doesn't like it shouldn't seek employment there.  Labour disputes are intended to be between employers and their employees. only.......third parties, like the Canadian public, should not have to suffer from them.

Message 61 of 173
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Canada Post Strike Update August

". In the 10 years following privatization and liberalization in Austria, the Netherlands and Germany, postal rates adjusted for inflation dropped respectively by 11, 15 and 17 per cent."

 

vs CP

 

"Since 2007, the peak point of mail volume, the Crown corporation has seen the inflation-adjusted cost of each unit of mail delivered increase by 19 per cent. To deal with these rising costs, it increased the price of a stamp from 52 cents to 85 cents (when sold in packets). Adjusting for inflation, this translates into a 44 per cent price increase."

 

http://www.huffingtonpost.ca/jasmin-guenette/canada-post-monopoly_b_11544976.html

Message 62 of 173
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Canada Post Strike Update August


tobyshi@tzu wrote:

". In the 10 years following privatization and liberalization in Austria, the Netherlands and Germany ...


Nothing like comparing oranges and apples and figuring using Florida growing methods will guarantee sweeter apples...

 

Size (sq km):

Nederland is smaller than Nova Scotia.

Austria is slightly larger than New Brunswick.

Germany is smaller than Newfoundland & Labrador.

 

Population density (per sq km):

408 - Nederland

262 - UK

228 - Germany

102 - Austria

 

 25 -- PEI

 17 -- Nova Scotia

 14 -- Ontario

 11 -- New Brunswick

  6 -- Quebec and Alberta

  5 -- BC

3.7 - Canada

 

-..-

 

 

 

Message 63 of 173
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Canada Post Strike Update August

This from the website of CUPW.... about Canada Posts's Annual Public Meeting

 

Statement on Canada Post’s Annual Public Meeting

 

Representatives of the Canadian Union of Postal Workers attended Canada Post’s annual public meeting on August 19, 2016. 

 

It is evident that the management of Canada Post has forgotten that Canada Post is not a commercial enterprise but a public service for all Canadians. Mr. Chopra spoke of the 400,000 businesses that were his “customers." He did not mention the 35 million Canadians who have a right to decent postal service. 

 

Canada Post managers declared that negotiations discussions were off-limits but then proceeded to use this platform to try to justify cutting pensions for the next generation of postal workers.

 

Mr. Chopra praised the work of Canada Post’s employees whose hard work generates the money.  Cutting future employees’ pension, trying to lock us out and stalling at the negotiating table is no way to thank us, Mr. Chopra.

 

 

Message 64 of 173
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Canada Post Strike Update August

Negotiations Continue: Meeting With The Government

 
Friday August 19 2016
2015-2019/169
No 65

 

This morning we met with representatives of the Federal Government and Canada Post management to discuss the current state of negotiations. The government was represented by Treasury Board President Scott Brison and senior officials from Labour Canada and Treasury Board. CPC was represented by CEO President Deepak Chopra and other senior representatives. Representing CUPW was National President Mike Palecek, 1st National Vice-President Jan Simpson, and both CUPW chief negotiators George Floresco (also 3rdNational Vice-President) and Sylvain Lapointe (also National Director, Metro-Montreal  Region).

 

Major Issues Discussed – No Agreements Reached

 

The meeting was conducted respectfully however no decisions were taken and no agreements were reached. Major points made by the union representatives included:

 

  • The Union is prepared and determined to negotiate collective agreements without any form of compulsory arbitration. We fought for our constitutional right to free collective bargaining and we will not relinquish our rights.
  • The Union will maintain a defined benefit pension for all current and future regular employees. We believe that Canada Post should not be subject to a solvency test. This has been the position of CPC and is the position of all CPC unions.
  • The Union is ready to negotiate equity for RSMCs. The issue is not complicated. RSMCs do the same work as letter carriers and should have the same wages, rights and benefits.
  • The Union is prepared to negotiate all other issues. We have already come to agreements which will enable CPC to increase its market share in the parcels and direct mail businesses. However, Canada Post management has been completely intransigent, refusing to even negotiate non-monetary issues such as RSMC seniority or health and safety issues.
  • We prefer to reach an agreement without a strike and we have never made any threats or ultimatums.

                                                                                                                                 

Stay United – Be Prepared

 

Your National Negotiating Committee and the members of the National Executive Board are determined to negotiate collective agreements which meet the needs of postal workers, ensures future growth of the Corporation, and improves services to the public.

Sylvain Lapointe
Chief Negotiator, Urban Unit
 
George Floresco
Chief Negotiator, RSMC Unit
Message 65 of 173
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Canada Post Strike Update August

The following is taken from the union’s,  CUPW’s report in relation the Annual Meeting

 

 “Canada Post is not a commercial enterprise but a public service for all Canadians”

 

------- 

By definition

 

Commerce is the activity of buying  and selling of goods and services, especially on a large scale

 

Commercial enterprise --- is the activity of providing goods and services involving financial and commercial and industrial aspects.

 

A Corporation (1) ---  is a company or group of people authorized to act as a single entity (legally a person) and recognized as such by law

 

A Corporation (2)  --- is a large business or organization that under law has the rights and duties of an individual and follows a specific purpose…

 

A Crown Corporation --- (in Canada) is a corporation owned by the federal or provincial government

 

CPC does not receive any form of monetary input from the Federal Government… CPC is self-sustaining.

 

 

Canada Post Corporation (CPC) has the mandate to deliver mail to all locations in Canada.  CPC does this better than any courier service such as UPS, Fedex   and more.

 

CPC is a profitable enterprise, so much so that it pays taxes , and it pays dividends  to the owner of its stock….

 

If CPC not a profitable commercial enterprise  then what is CPC?

Message 66 of 173
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Canada Post Strike Update August

Its a public service for all Canadians.......Translation  

 

Who cares if its profitable or loses money.  As long as the service is provided and the workers are paid well and have a pension that would be the envy of all.  If CPC goes into a huge loss down the road because of this, than maybe the Government (The people) will bail them out.  So whats the big deal...............Translation complete.

Message 67 of 173
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Canada Post Strike Update August

To my mind, these "hybrid" corporations are both self-sustaining corporations and public services, and that's precisely where the problem lies.  

 

A private corporation generally has total freedom (within the law) to make decisions about its employees based on market and fiscal needs.  However, a private corporation which also provides a very important (or arguably essential) public service is answerable to both its own needs and the needs of the population it serves.  

 

The union is wrong in saying that CPC is not a commercial enterprise.  It clearly is that, but it is also something more important too, and that is a service to all Canadians.  Chopra cannot turn his back on that fact.  Making matters even more complicated is the question of what CPC's mandate and responsibilities should be in an environment where it holds an effective monopoly?  Which is why government must sometimes still get involved.  

 

I know very little about the corporate and management structure of CPC, but I do know about the corporate and management structure of analogous "private corporations" that are running public services -- certain city transit corporations.  

 

In those situations, where the service is owned by a private corporation, the public is always in the middle, unwitting and unknowing victims of corporate decision-making.  Those decisions, if left without government oversight or involvement, result in things like diminishing service levels, lower quality of service, and serious safety issues (both for users and employees).  Corporate cutbacks result in disgruntled employees, cost savings in dangerous places such as poor or postponed maintenance on equipment, and attempts at union-breaking through a combination of attrition, two-tier wage structures, hiring of part-time employees, and gradual chipping away at pension arrangements.  This sounds like a familiar scenario, doesn't it? 

 

Which is why I'm not surprised that Treasury Board was heavily represented recent meeting with CPC/CUPW.  Is it possible our federal government has realized that this experiment in leaving CPC on its own to run a critical national service isn't the best model?  Is it possible they are considering injecting cash into the Corporation to meet some of the more critical union demands in exchange for certain "concessions" by CPC?  That might set a unpleasant precedent that some might call a "bail-out", but what else has worked so far?  Certainly not back-to-work legislation -- over the decades that has only created even more rancour between CPC and the unions. 

 

Sometimes there is more than one way to approach a problem.  Harper liked to use the heavy-handed, ham-fisted method.  Perhaps Trudeau's government is seeking a different solution.  I for one would not mind having a few more of my annual tax dollars injected into CPC if it meant a long-lasting, more secure and more consistent postal service.  

Message 68 of 173
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Canada Post Strike Update August

I should add, as all of us here know, that CPC serves not just the "public" in the usual understanding of that word, but also thousands of businesses and corporations across the country.  So, unlike a public service that may have little forward effect on the economy, CPC's services contribute directly to the sustainability of a lot of Canadians' jobs and income.  And those individuals' and companies' incomes also create tax revenue for the government.  Take away that one critical public service and the whole structure fails. 

 

I think that's a pretty important reason for the government to be urgently concerned about the outcome of the CPC/CUPW impasse.  This is no longer just a matter of grandma not getting her pension cheque on time.   The shift away from CPC's lettermail services to parcels also means more serious consequences to the economy as a whole if it doesn't continue to function reliably. 

Message 69 of 173
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Canada Post Strike Update August

" This is no longer just a matter of grandma not getting her pension cheque on time. "

 

Unfortunately that service will soon end.  Currently the vast majority of seniors (84%) in Canada get their Old Age Pension and CPP payments deposited directly into their bank account.  The federal government announced several years ago that sending monthly cheques by mail will soon be discontinued.

 

When I was at the office of Service Canada a month ago, I was told that I had to provide them my bank account information soon so I can continue getting my monthly payments.

 

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/direct-deposit-pay...

 

Personally I like getting my cheques by mail and going to the bank to deposit them (while flirting with the tellers!).  I will miss my monthly trips to the bank when they stop mailing them.

 

Back to the question of Canada Post, it runs several businesses at the same time.

1) postal (first class) service to Canadian individuals and businesses (with no competition by law)

2) parcel service in competition with hundreds of other carriers

3) delivery of "junk mail" in competition to other delivery methods (mostly local newspapers)

 

While it may make sense to divide Canada Post into two (keep the "essential service" of first class mail and sell the rest (parcel and junk) to private enterprises) it would be a nightmare with the unionized workforce.

Message 70 of 173
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Canada Post Strike Update August

It was interesting to note that there were high level government people at the second discussion   where CPC and CUPW people were present...

 

.........government was represented by Treasury Board President Scott Brison and senior officials from Labour Canada and Treasury Board

 

Why were such high level people at the meeting?.

 

Could it be that the Government wants an end to negotiations...

 

and also... an indication of what is or is not "officially" acceptable as a final solution.

 

CPC has set up a plan to reduce the cost of postage in many situations... while the union appears to be at odds with every aspect of that plan.

 

It should also be noted that Arbitration for other union groups has accepted CPC's  proposal to have a defined contribution pension plan for new employees.

 

 

 

 

 

 

 

 

 

 

.

Message 71 of 173
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Canada Post Strike Update August

"It should also be noted that Arbitration for other union groups has accepted CPC's  proposal to have a defined contribution pension plan for new employees."

 

BINGO!

 

That is why the union does NOT want to go to arbitration.  They know they will lose.

Message 72 of 173
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Canada Post Strike Update August

It is possible that the union was informed of this pension reality at the meeting..

 

This was the federal government talking.... Treasury and labour  people

 

and ... The union knows what will happen

 

 

 

Message 73 of 173
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Canada Post Strike Update August


@fort2b wrote:


Canada Post is offering a small pay raise to CUPW workers, they have also backed off to a degree on the idea of delivering packages in the evenings and on weekends by new part time hires (so they don't have to pay overtime to existing workers) and they've agreed to go to binding arbitration, (which I was shocked about when I heard....employers never come out well in binding arbitration settlements).

 

CUPW has made no concessions at all and scoffed at binding arbitration.

 

I'm not going to get into a discussion or argument with anyone on this forum about this labour dispute.  If you don't agree with me fine, state your viewpoint or say nothing but I will not be responding directly to anyone again.  I'm not taking sides in this dispute, i'm simply stating my opinion based on the events I have witnessed.


All I'd like to know at this point is your source for the above information.

Message 74 of 173
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Canada Post Strike Update August

There are many places to go read about the  strike situation.

 

(1) Canada Post.... with Interesting reports at ...

 

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2011/06/06/latest_union_of...

 

and 

 

https://www.canadapost.ca/web/en/comm/details.page?article=2016/07/08/canada_post_agrees_t&cattype=s...

 

and 

 

http://cupw-rsmc.infopost.ca/app/uploads/offer_to_rsmc_handout-e.pdf

 

(2) News reports throughout the internet

 

(3) The union website... at http://www.cupw.ca/

 

 

Lots of information ... the CUPW site gives one a view of the total opposite to  what CPC wants to do, whether CPC's approach is correct or not.

 

CPC's approach is to cut costs ...... and the union fights every aspect of that approach...  These are things CPC has to do....

 

 

 

The Rural versus Urban situation started off as a gender thing.... That has changed,,, the gender thing is gone....  Now it is only Rural versus Urban.....

 

 

 

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Canada Post Strike Update August


@cumos55 wrote:

It was interesting to note that there were high level government people at the second discussion   where CPC and CUPW people were present...

.........government was represented by Treasury Board President Scott Brison and senior officials from Labour Canada and Treasury Board

 

Why were such high level people at the meeting?.

Could it be that the Government wants an end to negotiations...

 


That was precisely what caught my attention in the entire report.  As I mentioned above, I wonder if this signals that the federal government is prepared to inject money into CPC in order to meet at least a minimum level of union demands, while getting concessions from both parties and an immediate settlement agreement?  

 

That would be a completely different, non-confrontational approach to these disputes than what we've seen over the past few decades, albeit not without controversy in certain circles. 

 

It would though, as I said, set a problematic precedent.  Once done, this kind of "bail-out" would be expected again.  I'm not even sure through what mechanism the federal government could do this -- bail-out legislation of some sort?

Message 76 of 173
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Canada Post Strike Update August

The next few days will be most interesting.....

 

Let us be aware... Let us take care...and ... Be ready for whatever happens.....

Message 77 of 173
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Canada Post Strike Update August

There is no need for the Federal Government to inject any money into CPC...

 

Canada Post was set up as a corporation, like any other corporation.  CPC is self-sufficient.

 

Everything that CPC has done is more that acceptable....  like it would be for any other corporation.

 

The Treasury and Labor people were there solely to remind CUPW  That what CPC is doing is more than acceptable.... CPC's plan is to reduce costs

 

Historically the interactions between the union and Canada Post have not been peaceful...  particularly when the union was established.... and in those situations, many situations,  since the beginning of the union... the union has won

 

Only in recent negotiations  has the union been less than a winner.

 

CUPW  has chosen  not to work with CPC... We can see that with all of the union's negotiation reports over July...

 

It is CPC's plan to cut costs... CPC is doing what any other corporation would do.

 

-----------------------------------------------------------------------------------

 

Canada Post used to be under government control, where now it is a self-sufficient corporation.

 

The question we have to ask is... Has the union adjusted to the new corporate ..... Canada Post Corporation?.....

 

 

 

 

 

 

 

Message 78 of 173
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Canada Post Strike Update August


@cumos55 wrote:

 

 

Canada Post used to be under government control, where now it is a self-sufficient corporation.

 


I would say that it's not enough to see CPC as just another corporation making money (for the reasons I mentioned earlier).  They are one of those odd Canadian "hybrids", a self-sustaining corporate entity that nonetheless provides a critical public service which cannot be ignored in decision-making.  

 

As I mentioned, I think CPC is analogous to some transit corporations in the constant tension between corporate needs and public needs. 

 

Personally I believe the union is going to have to compromise on some level, perhaps in one area, to gain concessions from CPC in those that are most important.  Since the pension issue is an either/or matter -- unlike wage demands that can be solved in increments, the union will have to decide how crucial the fight to keep the existing pension structure for every employee really is.  If it's a priority, the dispute over urban/rural wage parity and other secondary issues may be a fight for another day.  

 

I really find it difficult to understand why, with Canada Post apparently not at the point of going under financially, the two parties can't manage to get even close to an agreement.  Which is why I wonder about Treasury Board's heavy involvement.  I still think the federal government sent them there to find out how much it would take to bridge the "money gap" that would solve this labour dispute. 

 

I suppose we'll just have to wait and see.  Meanwhile, the updates are appreciated!

 

 

Message 79 of 173
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Canada Post Strike Update August

We see comments sometimes from posters about dividends paid by Canada Post to the federal government.

 

No such thing.

 

The following was taken from the notes to the financial statements from the 2015 annual Canada Post report

 

"As indicated in the 2015-19 Corporate Plan, the Corporation did not intend to pay a dividend in 2015, given its financial results and outlook. Canada Post has not paid a dividend to the Government of Canada since 2008."

 

https://www.canadapost.ca/assets/pdf/aboutus/financialreports/2015_ar_complete_en.pdf

 

I suggest readers (Canadian taxpayers) pay attention to the balance sheet.

 

It shows assets of $7,720,000,000

Liabilities of $8,844,000,000

 

For a net deficit of $1,151,000,000 (shareholder's equity deficit - that is our money folks)

 

We collectively own Canada Post.  Please invest some time to read and understand the financial report.  I suggest you skip the first sixty pages or so - it is all PR with nice pictures and lots of words.  Go the the numbers and explanations of the numbers.  That is where the meat is.

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