Canada Post Losses Continue As CUPW-CPC Bargaining Approaches
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The Canada Post Group of companies 2022 annual report released during CUPW’s National Convention sends clear signals about how Canada Post Corporation sees its future – and what the battlegrounds will be for our members.
The Corporation is likely to focus on belt-tightening as it hopes for a post-pandemic recovery. Uncertainty around global issues and a recession hang in the air - but it can’t be the workers who pay the price.
Results
The Canada Post segment posted a loss of $548 million, a bigger operating loss than in 2021. It’s the fifth year of net losses for the CPC group overall.
Compared to 2021, Parcel volume and revenue are down but parcel revenue is still higher than pre-pandemic - and much higher than transaction mail. It’s been like this for years - but isn’t a reliable trend. Numerous global factors mean that parcel growth can’t be counted on, while letter mail continues to decline.
Canada Post has invested heavily in the new Albert Jackson Processing Centre which it hopes will make the Corporation’s parcel services more competitive. The report suggests competitors keep costs down by maintaining fewer assets and compensating their workers a lot less for working in more precarious conditions, including gig work. Weekend delivery by competitors is also mentioned.
Labour costs decreased in 2022, partly due to higher interest rates which affect the cost of benefits and the performance of investments in the pension plan.
The Pension Plan’s solvency balance improved. CPC is still exempt from making special payments based on that balance until the end of 2024.
What this means for us
The report also talks up Canada Post Corporation’s efforts “to work with bargaining agents in a spirit of partnership,”. This doesn’t mean an absence of conflict in negotiations. Our interests will clash with the employer’s over working conditions and wages. We’ll need to be ready to stand up and fight.
Postal service is a labour-intensive service, so it’s the cost of labour which the employer is likely to target to cut costs.
We will continue to push for expanded retail and parcel services, and new services. Postal services around the world are relying on postal banking more than ever as a key source of revenue. We continue that push.
We must continue the work to mobilize work floors. We must all be united and organized behind our demands. Stay informed and engaged as we create our program of demands – bargaining is just around the corner.
In solidarity,
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