NCA Canada Post Policy Statement

Introduction

The National Citizens Alliance (NCA) supports a Canada Post Corporation that is competitive, transparent, and accountable, and treats its workers fairly and empowers them.

The NCA believes that the top-down management approach of Canada Post has hurt the efficiency of this large crown corporation. The workers at the bottom of the system have minimal incentive to invest more than their required job duties in the company. Typically, the top executives at Canada Post receive excessive bonuses, while the workers rarely receive any bonuses.

The NCA seeks to change the culture at Canada Post, so that it is a bottom-up corporation with budget surpluses that are shared fairly with all employees, rather than just with the middle and top management.

Please note, under Section 91 of the Canadian Constitution (1867), the federal government is responsible for Canada Post. What you see at Canada Post is a direct extension of the federal government.

Federal Government and Canada Post

The federal government has encouraged a management style at Canada Post which may be described as top-down, centrist. In addition, the federal government through the Canada Post executive has reduced wages and benefits to new employees, supported the shift from home delivery of letter mail to central mail boxes (CMBs), and allowed an excessive increase in the cost of stamps. In addition, the federal government has been secretive and vague about its 2014 review of the 2009 Canadian Postal Service Charter.

Canada Post is in financial trouble as indicated by its pension plan deficit of more than $5 billion. The average solvency deficit to be funded is approximately $7 billion with an average solvency ratio of 77 percent. The government has allowed Canada Post financial relief from making payments to its pension plan from 2014-2017. These special payments amounted to approximately $1.3 billion in 2014. Critics voice concern that Canada Post may not be able to recover from its accumulated debt. In addition, recently Canada Post spent approximately $2.5 billion on new plants and vehicles, sorting machines, equipment and other items in order to modernize the postal service. Further, the federal government claims that since 2008 Canada Post has had a decline of approximately 25 percent in its letter mail volumes. Finally, with the replacement of home delivery for letter mail with CMBs, between 6,000 and 8,000 employees will lose their jobs.

The NCA supports the following:

● Ensuring that Canada Post is operating at arms-length from the federal government through a Canada Post Office of the Ombudsman; support the appointment of the Canada Post Chief Executive Officer by a vote in the House of Commons rather than the Prime Minister through the Governor General

● Ensuring reasonable and fair rates for letter mail, parcels, and other services offered

● Exploring other management models for Canada Post, especially a model that empowers workers through opportunities to buy shares in the corporation and other incentives

● Exploring financial and banking services by Canada Post in order to compensate for its lower letter mail volumes and diversify its services

● Opening discussions with the Canadian Union of Postal Workers to learn what it sees as the major problems facing Canada Post and its best way forward for financial sustainability and high quality, affordable public service to Canadians

● Eliminating employee bonuses until Canada Post is operating at 100 percent solvency; when bonuses are given out, give them proportionately to all employees

● Placing a moratorium on the cancellation of home-to-home delivery by first exploring all other options; the cancellation of home delivery should be a last resort

● Protecting the universal service of Canada Post to all Canadians regardless of where they live

● Ensuring that the Canada Post Corporation remains unionized in order to protect the rights and safety of its employees and help maintain a high public service standard

● Establishing nation-wide public consultations through an online portal, and through public feedback forms and surveys, to allow Canadians to ask questions and share their perspectives

Conclusion

The NCA supports a competitive, transparent, and accountable Canada Post that is financially sustainable. The NCA believes that the alternative management models need to be explored as compared to the current top-down centrist model. The NCA believes that significant change at Canada Post starts with its management structure. In addition, the NCA believes that Canada Post workers need to be treated fairly and given sufficient incentives that will allow them to provide high quality public service to Canadians. The NCA will work with any party that shares its vision for Canada Post.

Created: 2014-11-30; last updated: 2017-01-04

The NCA membership vote on 2014-11-28/30. 100 percent of membership in favour of the Canada Post Policy Statement; 100 percent quorum with 1 abstain vote. Minimum 70 percent membership support and 50 percent quorum required for adoption of policies as per the NCA Constitution.

The NCA welcomes feedback on its policies. Please send policy feedback to info@nationalcitizensalliance.ca

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