Crown Corporation and special operating agencies: Committee of the Whole—July 22, 2020
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Canada Post: Health and safety
Context
Canada Post continues to provide a vital service to Canadians under difficult circumstances, with employees continuing to operate in the field delivering parcels. Canada Post announced on March 19, 2020 that they are doing everything possible to continue its service while keeping the health and safety of its staff as its number one priority
Suggested response
- Canada Post is closely monitoring the COVID-19 pandemic, and is taking steps to help keep its employees and the communities it serves safe, while following the guidance of the Public Health Agency of Canada
- We are working closely with Canada Post, and Canada Post is working closely with its unions, in order to ensure employees and the public are protected
- As the situation with the coronavirus evolves, the health and safety of employees and the Canadians they serve takes the highest priority while Canada Post takes steps to continue delivering the service Canadians rely on
If pressed on health and safety:
- Canada Post is taking action to protect employees and customers, including:
- enhanced cleaning in all of its facilities and extra safety supplies for employees and staggered shifts which minimize everyone arriving at work and having their breaks at the same time. This also allows for enhanced physical distancing in the workplace
- priority service at its retail post offices to those at a higher risk, such as seniors, during the first hour of each day
- installing signage and floor decals to encourage physical distancing, limiting the number of customers in smaller offices, and installing clear barriers at the counter to increase safety
- suspending its normal 15-day hold period and asking that customers who are ill or self-isolating delay their visit and pick up their parcel only when it’s safe to do so
- implemented a new process called “Knock, Drop and Go” to minimize contact with the delivery agent by eliminating signatures at the door
If pressed on volume and delays:
- Canada Post has been experiencing sustained, high volumes during this pandemic
- the employees of Canada Post are working hard to ensure deliveries continue to reach Canadians during this crisis, and we value their dedication
If pressed on distribution of the Epoch Times:
- the government is aware of concerns expressed regarding the content of the current edition of this publication, and the requests to have Canada Post stop distributing it
- as Minister responsible for Canada Post, I have the authority to prevent the distribution of material through Canada Post if it relates to a criminal offence
- we take these concerns very seriously. We will await further assessment and take appropriate action as required
If pressed on obligations:
- Canada Post has a legal obligation under the Canada Post Corporation Act to accept all neighbourhood mail for delivery subject to the regulations on non-mailable matter
- decisions made by Canada Post to deliver or refuse delivery of neighbourhood mail are subject to the Canadian Charter of Right and Freedoms
- after an initial legal assessment of this material, it does not appear to meet the required criteria for prohibiting distribution. However, further assessment is ongoing
Background
On March 19, 2020, Canada Post released a letter stating its number 1 priority is the health and safety of its employees. They encouraged employees who can work from home to do so. However, the majority of its employees are in the field delivering packages.
Canada Post has eliminated the need for customers to sign for parcels at the door to minimize personal contact. It has also suspended normal delivery guarantees for its parcel services as delivering safely without overburdening its employees requires more time.
Canada Post has been experiencing “Christmas level” volumes during this pandemic. For example, on Monday April 20, they delivered more than 1.8 million parcels to Canadians. That is similar to the biggest delivery days during the Christmas season. Canada Post has introduced several measures to encourage physical distancing and limit contact during the COVID-19 pandemic, including a “Knock, Drop and Go” approach for parcel delivery. This change eliminates the need for signatures at the door, speeds up delivery and has greatly reduced the number of parcels sent to post offices for pickup. Items that require signatures due to proof of age will be required to be picked up at the retail counter in a more controlled environment, where physical distancing can be accommodated.
Canada Post Corporation 2020 first quarter report
Context
On May 25, 2020, Canada Post Corporation released its 2020 first quarter (Q1) results and recorded a loss before tax of $66 million.
Suggested response
- Canada Post is a Crown Corporation that operates at arm’s length from the government
- Existing declines in transaction mail and direct marketing contributed to a loss in the first quarter, and these declines were further impacted by the COVID-19 pandemic
- Canada Post continues to provide an essential service while keeping employees safe, and remains the country’s leader in e-commerce delivery
If pressed on the $66 million recorded loss before taxes:
- Canada Post continues to see increased parcel revenue and volumes
- increases in costs were mainly due to higher labour and employee benefits, and increased collection, processing and delivery costs from parcels growth
Background
COVID-19 disruption
With parcel volumes rapidly increasing and transaction mail and direct marketing volumes quickly decreasing, COVID-19 is expected to have a larger impact on the business in the second quarter.
Key results for the Canada Post segment in first quarter 2020 compared to first quarter 2019
- Parcels results:
- volumes increased by 4 million pieces or 6.1% in Q1 2020
- revenue increased by $53 million or 10.4%
- the growth rate for parcels in Q1 was larger than in the same period of 2019, but remained lower than the growth rate in Q1 2018
- Transaction mail results:
- volumes fell by 30 million pieces or 2.2%
- revenue decreased by $16 million or 0.6%
- ongoing erosion accelerated toward the end of Q1 as many businesses began operating on an online-only basis due to COVID-19
- Direct marketing results:
- volumes decreased by 126 million pieces or 10.5%
- revenue decreased by $26 million or 8.6%
- declines in direct marketing revenue and volumes were larger than in the first quarter of 2019 due to COVID-19, as marketing campaigns were delayed or cancelled near the end of the quarter
Canada-United States-Mexico Agreement impact on Canada Post
Context
The Canada-United States-Mexico Agreement (CUSMA) trade agreement entered into force July 1, 2020. The agreement raises duty-free limits for private couriers and not Canada Post.
Note
All questions relating to the design and composition of CUSMA should be directed to the minister of Foreign Affairs.
Suggested response
- Canada Post is committed to providing high-quality postal services to Canadians at a reasonable price
- As an arm’s length Crown Corporation, Canada Post collects all duties and taxes on postal items inbound for Canada as determined by the Canada Border Services Agency (CBSA)
- Canada Post mail items are processed through the postal clearance process; as a result, new tax and duty free limits set in the CUSMA trade agreement will not apply
- Imported shipments under $20 sent via Canada Post will continue to be exempted from the assessment of applicable taxes and duties
Background
Currently, the regulations applicable to both the postal and low value courier stream exempts imported shipments under $20 from the assessment of applicable taxes and duties.
CUSMA increases Canada’s tax and duty free limits for products sent from the United States and Mexico, from $20 to $40 (tax) and $150 (duty). CUSMA limits apply to product accessing the courier low value shipment (CLVS) clearance process, a system used by private sector couriers such as UPS, FedEx and Purolator and other consolidators sending product cross border.
Canada Post and the United States Postal Service do not use the CLVS stream for product. Postal items are processed through the postal clearance process; as a result, limits set in the new agreement will not apply.
Canada Post collects all duties and taxes on inbound items as determined by CBSA.
Canada Post Corporation: Arbitration ruling
Context
On June 11, 2020, an arbitration ruling was issued for 2 disputes involving Canada Post Corporation and the Canadian Union of Postal Workers (CUPW). This ruling will serve as the basis for new collective agreements between the 2 parties.
Suggested response
- Canada Post continues to provide a vital service to Canadians under difficult circumstances
- Canada Post has informed personnel that the arbitrator decision includes wage increases for employees represented by both bargaining units of the CUPW
- The 2 new collective agreements are now 4 years in length, meaning they are in effect until December 31, 2021 and January 31, 2022
- This closes this round of collective bargaining for rural and suburban mail carriers as well as urban operations employees. We hope the new agreements provide the basis for the development of a collaborative working relationship between the parties as they move forward
If pressed on wage increases:
- both bargaining units of CUPW will see wage increases. Wages will increase by:
- 2.0% effective February 1, 2018
- 2.0% effective February 1, 2019
- 2.5% effective February 1, 2020
- 2.9% effective February 1, 2021
Background
On December 10, 2018, an arbitrator was appointed to carry out the functions and duties assigned by the Postal Services Resumption and Continuation Act, which was enacted to resolve 2 disputes involving Canada Post Corporation and the CUPW.
The arbitration process has been lengthy due to difficulties in scheduling a sufficient number of hearing dates to allow each party to fully present its case, but hearings concluded on May 6, 2020.
On June 11, 2020, the mediator-arbitrator provided her report to the minister of Labour.
Translation Bureau virtual capacity
Context
The Translation Bureau (TB) continues to work with the house administration and all partners to support Parliament’s virtual sittings.
Suggested response
- The government is committed to providing essential translation and interpretation services to parliamentarians and Canadians
- To this end, we are continuing to work with the house administration and all our partners to support Parliament’s virtual sittings
- Ensuring the health and safety of interpreters is a priority for the Government of Canada
- Guidelines have been developed to establish optimal conditions so that interpreters can provide high-quality service in a safe environment
If pressed on capacity:
- we have the capacity to continue serving Parliament and the Government of Canada
- TB currently has approximately 70 official languages interpreters available to meet the needs of Parliament
Background
Since the beginning of the pandemic, TB has worked closely with the house administration in the implementation of virtual committee sittings.
TB’s operations have been altered to respond to parliamentary needs. Conditions have improved over time and the collaboration continues in order to find a sustainable solution to reduce the risk of interpretation service interruptions due to the technology used by remote participants.
Certain criteria must be met in order for remote interpretation to work. These include the following:
- all participants must wear a headset with a microphone to ensure clear sound quality
- participants must appear via videoconference so that the interpreter can see their facial expressions and clearly communicate the tone of their message
- participants must strictly adhere to the rules for speaking, and must wait their turn to speak
- a technician must be in the room with the interpreters at all times to address any technical issues
- the audio feed for the interpretation consoles must have limiters or compressors to prevent acoustic shock
- interpreters must be able to do sound checks with the technician and participants before each meeting begins
- as always, participants who plan to read written statements must provide them in advance to interpreters
These criteria are needed to establish optimal conditions so that interpreters can provide high-quality service in a safe environment. Abiding by these criteria will not completely eliminate the risk of interpretation service interruptions due to the technology used by remote participants, but it will greatly reduce this risk and help ensure the best possible interpretation.
Translation Bureau health and safety
With the increased use of videoconferences, there has been an increase in incident reports from interpreters, including headaches, earaches and fatigue due to poor sound quality.
TB has provided its interpreters with headsets with sound limiters to protect against acoustic shock and implemented a series of hygiene and physical distancing measures. In addition, the bureau requires its clients to take technical measures that promote not only the health of its interpreters but also high-quality interpretation. These include having a qualified audiovisual technician present at all times, remote participants’ use of good quality headsets with built-in microphones and good quality internet connections, and the provision of documents to interpreters in advance of meetings.
TB’s approach aligns very closely to international best practices, including the International Association of Conference Interpreters principles, guidance for institutions and best practices.
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