Canada Post says profits won’t save door-to-door delivery

Update: see previous post – May 15, 2015 Canada’s Mayors Frustrated with the Cavalier Approach of Canada Post

Canada Post president and CEO Deepak Chopra said at the corporation's annual public meeting on Thursday that it is weathering 'seismic changes.' He plans on forging ahead with his plan to replace door-to-door delivery with Community Mail Boxes (CMB's), despite public backlash and eliminating thousands of jobs.
Canada Post president and CEO Deepak Chopra said at the corporation’s annual public meeting on Thursday that it is weathering ‘seismic changes.’ He plans on forging ahead with his plan to replace door-to-door delivery with Community Mail Boxes (CMB’s), despite public backlash and the elimination of thousands of jobs.

Crown corporation making millions, but says services will still be cut.

see source

Despite raking in millions of dollars in profits, Canada Post says it can’t afford to back down on its controversial plan to scrap door-to-door mail delivery in towns and cities across the country.

If Deepak Chopra (President & CEO of Canada Post) has it his way, every household/business's door-to-door delivery would be abolished and replaced with these community mail boxes.
If Deepak Chopra (President & CEO of Canada Post) has it his way, every household/business’s door-to-door delivery would be abolished and replaced with these community mail boxes. Finally Canadians are fighting back and the NDP has promised that if they are elected in the upcoming Federal election on October 19, 2015 they would maintain door-to-door delivery for Canadians.

The Crown corporation held its annual general meeting in Ottawa on Thursday where it announced a pre-tax profit of $24 million for the first quarter of 2015.

On Dec.11/13 when Canada Post President/CEO Deepak Chopra announced his 5-point plan (including the end to door-to-door delivery, drastically raising postal prices, the elimination of thousands of jobs, etc.) the Harper government announced their full support, within 2 hours of the announcement of Chopra's plans. On Jan.28, 2014 NDP leader Olivia Chow moved a motion in the house of commons to stop Harper's plan to end door-to-door delivery.  All the NDP and Liberal MP's voted in favour of the motion, whereas all the Conservative MP's (who hold a majority) voted to end door-to-door delivery. Harper's conservatives won the vote.
On Dec.11/13 when Canada Post President/CEO Deepak Chopra announced his 5-point plan (including the end to door-to-door delivery, drastically raising postal prices, the elimination of thousands of jobs, etc.) the Harper government announced their full support, within 2 hours of the announcement of Chopra’s plans. On Jan.28, 2014 NDP leader Olivia Chow moved a motion in the house of commons to stop Harper’s plan to end door-to-door delivery. All the NDP and Liberal MP’s voted in favour of the motion, whereas all the Conservative MP’s (who hold a majority) voted to end door-to-door delivery. Harper’s conservatives won the vote.

Canada Post says its profits were boosted by an increase in the price of postage and by growth in parcel traffic as more Canadians shop online. Parcel deliveries brought in revenues of $380 million in the first quarter, $39 million more than the same period in the previous year.

Canadians are upset that Deepak Chopra, President and CEO of Canada Post plans on eliminating door-to-door delivery and are placing placards on their lawns, which reads "Save Door-to-Door Delivery"
Canadians are upset that Deepak Chopra, President and CEO of Canada Post plans on eliminating door-to-door delivery and are placing placards on their lawns, which reads “Save Door-to-Door Delivery”
Signs placed on lawns in response to Canada Post's plan of eliminating door-to-door delivery of mail.
Signs placed on lawns in response to Canada Post’s plan of eliminating door-to-door delivery of mail.

While parcel numbers are up, however, Canada Post says its core business, delivering letters, bills and other correspondence, continues to plummet. According to its own figures, Canadians sent 1.4 billion fewer pieces of mail in 2014 than they did in 2006.

Inside Canada's largest letter sorting postal plant. Canada Post borrowed billions of dollars against the Pension Fund to purchase a fleet of new postal trucks and new equipment for their Postal Transformation (PT) idea. Why would Canada Post purchase new technology to process letters, when according to them, lettermail volumes have decreased by about 5% a year or a billion letters between 2006 – 2012?  Now they are trying to convince the government and the public that they have no money and are broke.
Inside Canada’s largest letter sorting postal plant. Canada Post borrowed billions of dollars against the Canada Post Pension Fund to purchase a fleet of new postal trucks and new equipment for their Postal Transformation (PT) idea. Why would Canada Post purchase new technology to process letters, when according to them, lettermail volumes have decreased by about 5% a year or a billion letters between 2006 – 2012? They are now claiming, based on their numbers (which haven’t been released) that Canadians sent 1.4 billion fewer pieces of mail in 2014 than they did in 2006. Now they are trying to convince the government, the public and Canada Post employees that they have no money and are broke.

Deepak Chopra, president and CEO of Canada Post, told the corporation’s annual meeting the corporation is now weathering “seismic changes” that require “difficult choices.”

Opposition to community mailboxes

In other words, despite making money in the first quarter of 2015 and despite posting an overall pre-tax profit of $194 million in 2014, the corporation is still forging ahead with plans to install community mailboxes in communities across the country, effectively bringing an end to door-to-door mail delivery.

“What we are trying to do is avoid becoming a burden on taxpayers for hundreds of millions of dollars if we don’t act responsibly now,” Chopra said, speaking to a roomful of Canada Post employees and retirees at the corporation’s Ottawa headquarters.

Federal New Democrats have vowed to preserve door-to-door delivery if they form a government after the October 19, 2015 election, five (5) months from now.
Federal New Democrats have vowed to preserve door-to-door delivery if they form a government after the October 19, 2015 election, five (5) months from now. Canada is the only G-8 country trying to totally eliminate door-to-door delivery with the support of the Prime Minister, Stephen Harper and his conservative goverment.

“We don’t want to wait until the problem has become so severe that the initiatives we will be forced to take would be even more difficult.”

Canada Post’s plan has provoked anger and frustration in some communities. The City of Hamilton is challenging the corporation’s plan to install community mailboxes in the city because of concerns about safety, traffic and litter around the new units.

The Canadian Union of Postal Workers has joined a lawsuit arguing home mail delivery should be protected under the Charter of Rights and Freedoms. Mike Palecek, the union’s national president, was in Ottawa Thursday to question Canada Post executives at the corporation’s annual meeting.

Canada Post says it doesn't need permission to approve the locations of its future super mailboxes. The City of Hamilton legal staff disagrees.
Canada Post says it doesn’t need permission to approve the locations of its future super mailboxes. The City of Hamilton legal staff disagrees.

“This corporation belongs to Canadians. And there’s been a rising tide of opposition to what you’re doing,” Palecek told the meeting.

“When are you going to listen to the owners of Canada Post and scrap this ridiculous plan?”

A Canada Post letter carrier at a relay box. In addition to introducing community mail boxes to homes/businesses that currently have door-to-door delivery, Canada Post continues to eliminate thousands of jobs across the country.
A Canada Post letter carrier at a relay box. In addition to introducing community mail boxes to homes/businesses that currently have door-to-door delivery, Canada Post continues to eliminate thousands of jobs across the country.  President and CEO Deepak Chopra believes that by eliminating thousands of Canada Post jobs that he can improve postal services to Canadians.

Federal New Democrats have vowed to preserve door-to-door delivery if they form a government after the next election. When asked what his plan would be in that situation, Canada Post’s CEO said only that the corporation’s plan was based on “good facts.”

Canada Post has about 6000 outlets, in which services are offered by employees of drug stores or convenience stores.  Canada Post has closed most official Canada Post Postal Outlets (leaving only about 500 across Canada) in which postal employees work. They continue to close Canada Post outlets and open up in convenience stores, in which the convenience store's employees provide postal services.
Canada Post has about 6493 outlets, in which services are offered by employees of drug stores or convenience stores. Canada Post has closed most official Canada Post Postal Outlets (leaving only about 493 across Canada) in which Canada Post postal employees work. They continue to close Canada Post outlets or to make them smaller (smaller post office, less employees and less hours then franchises that surround them) and open up franchises in convenience stores, in which the convenience store’s employees provide postal services.

“Our plan is well thought out and we would like to continue to focus on our priorities,” Chopra said.

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