Service changes necessary as mail volumes continue to plummet
Due to a significant drop in mail volume Canada Post is forced to immediately reduce costs by making adjustments to delivery schedules. With rotating strikes continuing across the country, Canada Post must act now to avoid significant losses that will harm the company’s financial self-sustainability.
Canada Post is taking steps to reduce its labour costs by aligning staff throughout the postal network to reduced mail volumes and workloads. In the coming days, Canada Post will implement the following measures:
- Staffing levels at mail processing plants across the country will be reduced to adjust to the reduction in mail volumes at each facility.
- Letters and Admail will be delivered three days a week (Monday, Wednesday and Friday) in mostly urban areas where delivery is performed by letter carriers.
- Most small packages and documents will also be delivered three days a week. Every effort will be made to continue to deliver priority items five days a week.
These changes, while significant, do not include all products and services at Canada Post. Many product and service offerings will not be affected by these changes, including:
- Delivery of mail to rural mailboxes and community mailboxes will continue five days a week where service is provided by Rural and Suburban Mail Carriers (RSMCs) who operate under a separate collective agreement than urban employees.
- Post Office operating hours and access to post office boxes will remain unchanged.
- Pick-ups from qualified customers and mail collection at street letter boxes on major streets will continue as usual.
- Delivery of all parcels will continue as usual.
Canada Post regrets any inconvenience these changes cause to customers. However, daily mail volumes at Canada Post have fallen up to 50 per cent since the union started rotating strikes on June 3rd. This has resulted in a steep drop in revenues and forced the company to find ways to reduce costs.
The offer that the company has placed on the table with CUPW is fair and reasonable, and does not justify the strike action that has resulted in service disruptions across the country. Specifically, the company has proposed the following for current regular employees:
- Annual wage increases that will bring the top wage rate to $26 an hour
- Continued job security
- No changes to a Defined Benefit pension plan
- Comprehensive medical benefits for employees and retirees
- Generous vacation leave that gives employees up to seven weeks off each year
Canada Post has proposed a new wage and benefits package for employees hired in the future. This includes a starting wage of $19 an hour that rises to $26 an hour over seven years; up to six weeks vacation; and fully indexed defined benefit pension by age 60. The package for new employees is still superior to the wages and benefits offered by competing logistic and delivery companies. Equally important, these changes will help Canada Post manage labour costs that take-up two-thirds of its revenues.
Canada Post is a Crown Corporation whose operations are funded by the revenues generated by its products and services, not taxpayer dollars. It has a mandate from the Government of Canada to remain financially self-sufficient. The company is taking steps during this round of labour negotiations to ensure that it can continue to fulfill its mandate and provide Canadians with the postal service they expect.
