Canada Post’s need for big changes is obvious

Opinion

How much do you still rely upon Canada Post to conduct your personal or commercial business these days?

Want to write to someone? Send an email, or text them. Need to pay a bill? An online account now handles all of those interactions quite nicely. Even getting cheques in the mail is an obsolete indulgence when direct deposit is an option.

Thus the value of Canada Post to our everyday lives remains a pertinent question given the news this week that the Crown corporation received a 72-hour strike notice on Monday from the Canadian Union of Postal Workers, with operations ready to shut down by the end of the week.

It would mark the second time that Canada Post employees were out on the picket line in a six-month period.

Last December, the Canada Industrial Relations Board ordered Canada Post employees back to work only 10 days before Christmas — but not in time for most mail-ordered gifts, packages and cards to make their intended destinations. By the time the back-to-work order had been made, the strike had been going on for about four weeks.

“Canadians are rightly fed up,” said former federal labour minister Steven MacKinnon at the time.

The New York Times reported that month that a wide swath of Canadian residents and businesses were affected by the strike, with the hardest hit being those in remote communities where Canada Post is the only delivery service option — even for companies like Amazon.

The four-week strike left some local small businesses reeling in Brandon, and in Manitoba generally. We reported late last year that a custom clothing company here in Brandon had its shipping processes upended, while another business that sold luxury silk pillowcases and accessories said their business model had been jeopardized as a result of the strike. And the longer the strike went on, the more likely it was that small business found other options.

“Nearly three-quarters of small business owners said they will be using Canada Post less going forward because of the strike,” said Brianna Solberg of the Canadian Federation of Independent Business. “The strike has negatively impacted 75 per cent of Manitoba’s small businesses, with one-third reporting significant cost increases from lost orders, delayed payments and more expensive alternatives.”

For northern First Nations, the threat of a postal strike has larger health implications. During the last strike, the national chief of the Assembly of First Nations, Cindy Woodhouse Nepinak, urged the federal government to impose an end to the walkout.

“Many of our citizens rely entirely on Canada Post for access to prescription medications, medical equipment and health care supplies,” the chief said.

There is still a need for Canada Post services, even though so much of our society has turned to cheaper, faster digital solutions for most of our day-to-day needs. Rural areas, particularly hard to reach areas, still need the value that a government-run Canada Post can provide.

Yet there remain calls for the Crown corporation to enact service reductions or to be privatized — a columnist for the Financial Post called for this just last week.

“Liberalizing the mail business to allow private firms to compete and then selling off Canada Post wouldn’t just improve service for Canadians, it would also protect them from having to bail out the Crown corporation if and when bankruptcy happens,” wrote Peter Shawn Taylor in his op-ed. He pointed to the example of Germany, where privatization has allowed its Deutsche Post to be “highly profitable,” delivering mail “quickly, efficiently and inexpensively” even while turning a profit.

The one difference here is that Canada is a massive, sprawling country with small communities in remote locations. The German government does not find itself with this kind of predicament.

Nevertheless, the need for some foundational change is obvious, as Canada Post is on financially unstable ground. Canada Post has recorded significant annual losses since 2018, with the most recent figure from last May that pegged the corporation’s deficit at $3 billion. And that’s before last year’s strike action.

Just last week, a report by the Industrial Inquiry Commission — which was called for on the heels of last year’s back-to-work order — largely backed the Crown corporation’s claims of financial hardship and flagging business. Among its recommendations, the report called for phasing out daily door-to-door letter mail delivery for individual addresses while maintaining daily service for businesses. According to a report by The Canadian Press, the report also recommended lifting the moratorium on rural post office closures and community mailbox conversions.

The CUPW did not take the news well, saying that it “fundamentally” disagrees with most of the report’s recommendations. That does not change the fact that Canada Post is financially distressed and needs to find ways to evolve, and a second lengthy strike will only hasten the need for change.

We find it unfortunate, though, that the ones who need the service the most are the ones who will most likely lose the most as a result.