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Old 23-07-2013, 09:42 PM   #1
jagators63
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Default Do you think Canada Post should be privatized?

I don't know but in UK , they did privatize Royal Mail postal group.


http://www.edmontonsun.com/2013/07/2...mp-of-approval
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Old 23-07-2013, 10:05 PM   #2
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I personally don't see how they could. Canada Post runs at a huge loss as a crown corp. Despite the Sun's belief that privatization would somehow be a miracle solution to fixing that, most of the challenges faced by Canada Post wouldn't go away (ie: having to provide service to every Canadian across an enormous, sparsely populated country, and having a labourforce with one of the most vehement unions in the country).

Letter mail service is public service, not really something that I can see being made into a viable business. There also aren't many historic examples of privatization being all that cost-effective in Canada. Our registries for example. While the service hours and number of locations has improved under privatization (though certainly not the service quality), Alberta has just about the highest licensing and registration costs in the country. I just don't see how it could work for Canada Post.
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Old 24-07-2013, 07:01 AM   #3
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I personally don't see how they could. Canada Post runs at a huge loss as a crown corp. Despite the Sun's belief that privatization would somehow be a miracle solution to fixing that, most of the challenges faced by Canada Post wouldn't go away (ie: having to provide service to every Canadian across an enormous, sparsely populated country, and having a labourforce with one of the most vehement unions in the country).

Letter mail service is public service, not really something that I can see being made into a viable business. There also aren't many historic examples of privatization being all that cost-effective in Canada. Our registries for example. While the service hours and number of locations has improved under privatization (though certainly not the service quality), Alberta has just about the highest licensing and registration costs in the country. I just don't see how it could work for Canada Post.
It's not about being cost effective, it's about getting it off the books or handing value to the private sector to pay off debt from deficit spending in other areas. (Or to satisfy some dogmatic capitalist beliefs.) The private sector can then raise prices, and slash service quality and in a worst case load up the enterprise with debt and attempt to walk away from it with a tidy profit.
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Old 24-07-2013, 10:12 AM   #4
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^ Canada post remains a life line for many people and places.... Doing away with it or handing it off to a pvt company would still require gov't money in order to maintain service to remote areas.

What Canada post needs to do is expand. In Germany the post is also a bank of sorts from my understanding.
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Old 24-07-2013, 11:13 AM   #5
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Canada Post runs at a huge loss as a crown corp.
Canada Post turned a profit of $94 million last year. See page ii: http://www.canadapost.ca/cpo/mc/asse...omplete_en.pdf

In fact, out of the last 19 or so years, the only annual loss was in 2011.

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While the service hours and number of locations has improved under privatization (though certainly not the service quality), Alberta has just about the highest licensing and registration costs in the country.
That's not accurate either. See page 17: http://servicealberta.ca/pdf/annual/...port_12-13.pdf
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Old 24-07-2013, 12:11 PM   #6
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what a nightmare trying to resolve the pension funding and union issues
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Old 24-07-2013, 01:46 PM   #7
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I wouldnt invest in it. Problem is, how would it guarantee service to uneconomic rural areas and the far north? Would that get a government subsidy or would the service end?
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Old 24-07-2013, 01:53 PM   #8
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Im not sure if im for or against. I can tell you that i think their biggest issue is wages. Do you know what a postie makes? Thats all thanks to the Union.

Im not sure if it went private what would become of the Union. I just know the job posties do could be done for a lot less per hour by a lot more people.
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Old 24-07-2013, 02:24 PM   #9
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Im not sure if im for or against. I can tell you that i think their biggest issue is wages. Do you know what a postie makes? Thats all thanks to the Union.

Im not sure if it went private what would become of the Union. I just know the job posties do could be done for a lot less per hour by a lot more people.
No, it's biggest issue is that it's "service" is shite. I'm really annoyed that the British postal service is in the process of being privatized for a number of reasons, but I couldn't care less what they do to the Canadian service as I try to avoid using it whenever possible.
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Old 24-07-2013, 02:29 PM   #10
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Im not sure if im for or against. I can tell you that i think their biggest issue is wages. Do you know what a postie makes? Thats all thanks to the Union.

Im not sure if it went private what would become of the Union. I just know the job posties do could be done for a lot less per hour by a lot more people.
How much does a new postal worker make?
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Old 24-07-2013, 07:41 PM   #11
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How much does a new postal worker make?
The letter carrier I know said he started at around 50k/yr plus benefits. But he said if he hustled he could finish his route in half a day and he wasn't able to ask for more work (there was no incentive anyways). I think the generous cushion is given to them in case of bad weather/traffic where they are expected to deliver mail on time regardless.
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Old 24-07-2013, 08:13 PM   #12
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^ New workers dont make that...
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Old 24-07-2013, 08:16 PM   #13
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Proposed by canada post during the last strike... The gov't imposed something less i believe...
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.

Lastly it's wrong to blame the workers for earning a living wage... start blaming the rich for hoarding money..
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Last edited by edmonton daily photo; 24-07-2013 at 08:20 PM..
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Old 24-07-2013, 08:35 PM   #14
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^I'm not blaming anyone. Was just telling you what he told me. He started before that strike, so they were probably getting paid more beforehand.
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Old 24-07-2013, 08:42 PM   #15
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OK did my research, this was the last agreement prior to 2011. Appendix A on page 381 shows the wage rates.

http://www.cupw.ca/multimedia/websit...ca_2007_en.pdf

It looks like they took a pretty significant cut if the new starting wage is $19/hr. In 2010 it was over 20% higher.
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Old 24-07-2013, 09:18 PM   #16
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^ I personally really thank you for doing the research!

In the restructuring of routes and delivery method I am also told the work expectations are greatly increased and OT which was once handed out like candy is strictly watched.... There may even be a lawsuit.. let me go look
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Old 24-07-2013, 09:20 PM   #17
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Canada Post workers allege OT claims punished
http://www.cbc.ca/news/politics/stor...rkers-pay.html
Canada Post redesigned many of its delivery routes and procedures just over a year ago and now some Canada Post employees say they're being punished for claiming overtime pay when they work extra hours.

Some workers say their new duties can't be completed in a regular eight-hour workday and they feel pressured to do the extra work for no pay.

Backlog of 50,000 grievances
Canada Post admits it has a backlog of about 50,000 grievances for 52,000 unionized members. More than 700 are dismissal cases.

"There are a large number of grievances. … We apply the resources we can to that," said Jon Hamilton, a spokesman for Canada Post, adding workloads are carefully calculated to take up to eight hours.

"If somebody is consistently using overtime for something that we've managed and measured to be eight hours then you've got to investigate that," he said.
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Old 25-07-2013, 01:51 PM   #18
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Quote:
Originally Posted by edmonton daily photo View Post
How much does a new postal worker make?
The letter carrier I know said he started at around 50k/yr plus benefits.
Sounds reasonable given the 'hard' work the Cliff Clavins of this world do...
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Old 28-07-2013, 11:45 PM   #19
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The post office is an example of when governments still engaged in nation building. Not everything has to make money directly, since in some cases the net benefits/intangibles are not easily assigned a dollar value. Highways don't directly make money, but its hard to argue their indirect benefit. The post office is doing a fine job, and I hope that it stays government but is given the freedom to evolve and grow. I have never ever had an issue with the post office, but I have had so many headaches dealing with fed-ex, and ups.

fed ex at their finest
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Old 28-07-2013, 11:53 PM   #20
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It's time to end door to door service. Most of the items they deliver are junk mail. Just use super mail boxes and put a trash can beside every one of them. Then reduce the number of workers.
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Old 29-07-2013, 09:27 AM   #21
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^Junk mail is the only thing keeping them in business.

I put a "no junk mail" sign on my box and they have mostly respected it. However, during one ill thought out campaign, they delivered an unsolicited flyer asking me to remove my "no junk mail" sign hahah.
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