HERE IS SOME INFORMATION RE CANADA POST

marionHERE IS SOME INFORMATION RE CANADA POST:
1. Canada Post is not profitable?

This is not true. In 2015 Canada Post made a profit of $99 million. Since 2001 they have only made a loss twice –and one of those years is when they locked CUPW out.
Here is a list

Year

Profit in millions

Loss in millions

Comments

2001

67

2002

71

2003

253

2004

147

2005

199

2006

119

2007

54

2008

90

2009

281

2010

439

2011

188

This was due in part to the strike /lockout and the pay equity settlement

2012

94

2013

29

There was some interesting accounting this year

2014

198

2015

99

2. Canada Post is funded by taxes? and/or Taxpayers pay postal workers wages?

This is not true. Canada Post is self sustaining. The 1981 legislation enabling Canada Post to become a Crown Corporation outlined that. This is the Canada Post Corporation Act.

Over the past 19 years Canada Post has contributed over $1 billion in income tax and dividends to government coffers.

In 2014 Canada Post paid $71 million in income tax to the Federal Government. In 2015 Canada Post paid $37million in income tax.

Canada Post is 100% funded from its own revenues in letter mail stamps, parcel delivery, direct marketing and so on. The wages and benefits that Canada Post workers earn cost taxpayers nothing.

3. Mail Volumes are falling?

First class letter mail is dropping. However it is still profitable. The 2015 Canada Post Annual report stated “…Still the paper era has not ended. Nearly 3.7 billion pieces of Transaction Mail were mailed in 2015. This generated $3.2 billion in revenue”.

Parcels and admail volumes are increasing.

Since 2011, Canada Post parcel revenue has grown by $429 million.

In 2015 parcel volumes increased by 9.7%. This means that Canada Post workers delivered 16 million more parcels in 2015 than we did in 2014.

Admail volumes also increased by .2% in 2015.

In 2015 Canada Post’s revenue was from the following sources:

  • 50% transaction mail
  • 26% parcels
  • 19% direct mail
  • 5% other

4. The Canada Post Pension Plan is in major trouble?

This is incorrect.

The 2015 Canada Post Pension Plan report said the plan had a $1.2 billion going-concern surplus. This means there is more than enough money in the pension plan to pay our pensions and that of future retirees. This is the evaluation that we need to pay attention to.

In 2015 this going concern surplus increased to $1.2 Billion from $500 million. That is a very significant increase.

In 2015 the Canada Post Pension plan had 7.3% rate of return on investments. That is very good.

The Canada Post Pension Plan has a solvency deficit of $ 6.1 billion. A solvency deficit becomes a major issue if the pension plan winds up and Canada Post has to purchase annuities for all current and retired members. But, since in the terms of the Canada Post Mandate Review, the Federal Government explicitly ruled out the full or partial privatization of Canada Post, this should not be a worry.

In 2015 this solvency deficit was reduced from $6.8 Billion to $6.1 Billion, despite new hires joining the plan.

The Federal Government can and should exempt Canada Post from this solvency evaluation. The major pension plans in B.C. and Ontario do not have to have solvency evaluations

CUPW and the other Unions at Canada Post wrote a joint letter to the Federal Government asking that the Canada Post pension plan be exempted from solvency evaluations. CUPW has proposed that all CPC employees should be entitled to the defined benefit pension and that CPC and CUPW jointly approach the government to provide an exemption from the requirement to make solvency payments. This is completely in accordance with the joint letter sent by all four postal unions to Minister Judy Foote on January 22, 2016.

This letter said “In summary, we are seeking your support on these two challenges and opportunities for the Plan: to support our request for a permanent exemption from solvency funding rules under the PBSA, and to permit all employees of Canada Post to join or re-join the defined benefit component of the Plan. We believe both of these measures would enhance the Plan’s viability, and continue to provide the security that accompanies the expectation of an adequate retirement income.”

5. Canada Post needs to make cuts in order to reduce staffing?

Not true. Canada Post already has the tools available to it to reduce staffing. Here are some staffing figures about the number of people in the CUPW Urban Operations Bargaining Unit (covering letter carriers, clerks, despatchers, MSC’s, technical services, and mailhandlers) taken from Canada Post’s annual reports:

  • In 2015 there were 32,934 staff
  • In 2014 there were 34,195 staff
  • In 2013 there were 35,131 staff
  • In 2012 there were 33,105 staff
  • In 2006 there were 42,010 staff

In less than ten years Canada Post has decreased its Urban Operations workforce by over 9,000 people.

Canada Post’s own figures show that in 2015 parcel delivery increased by 9.7% but the number of staff dropped by more than 1,000

4 comments

  1. Will I get my mail from my dying grandmother in the next two weeks that she has to live??? I’ll pay the postage, thx

  2. Bruce says:

    Excellent summary! Canada Post needs to settle with its workers…there is no need to drag this Union to the bottom of the collective bargaining barrel!

  3. E J Hollingsworth says:

    Well written Marion. Yes, Let everyone know the truth to this story. Keep up the ongoing battle to set it straight

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