Don’t Privatize Canada Post: POLL
Labour strife has become the norm in the relationship between Canada Post and the Canadian Union of Postal Workers over the past several years, evidenced by rotating strikes in 2018, a nationwide strike last November, and the ongoing conflict, which awaits a union vote.
With the future of the crown corporation in question, Canadians are open to changes to its operations and are more willing to subsidize future losses than they are to want Canada Post to be privatized.
New data from the non-profit Angus Reid Institute finds Canadians opposed to the government selling off Canada Post by more than a two-to-one margin (59% oppose to 26% support). They also lean toward opposition when it comes to privatizing the crown corporation in part (47% to 38%).
Instead, two-thirds (64%) of Canadians say it is important to them that Canada Post remain publicly owned.
That said, Canadians are open to changes in the way the institution operates. Seven-in-10 (72%) would reduce mail delivery to three days a week. Fully half (52%) say Canada Post should be allowed to utilize non-union gig workers to deliver mail and parcels if it improves cost and service quality, while seven-in-10 (72%) say Canada Post branching out into other services like banking and parcel lockers is something they would support.
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This is a release from the non-profit Angus Reid Institute:
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Part of Canada Post’s recent challenges include a changing competitive environment where the largest online retailer, Amazon, also delivers parcels itself. However, Canada Post still plays an important role in the online retail environment. Case in point, nearly half of Canadians (46%) overall say Canada Post is “important” or “very important” to them in receiving their mail. But it is Canadians under 35 who are more likely than older ones to say they rely on Canada Post regularly for mail, perhaps due to that age group’s elevated reliance on online shopping.
Considering the corporation’s recent losses amounting to on average $800 million annually in the last two years, Canadians are more than twice as likely to say it is “worth it” to pay the approximate $20 per person to maintain Canada Post at this current deficit.
While the leeway from Canadians is likely appreciated by Canada Post, the corporation would undoubtedly prefer to become more self-sufficient, if not profitable. Complaints from Canada Post have noted outdated regulatory structures constraining its ability to compete, and the Great Mail Decline reducing its revenue.
More Key Findings:
- Nearing half of Canadians say Canada Post is important to them personally and they regularly receive mail. There is a 10-point gap, however, between urban (45%) and rural (55%) respondents.
- While Canadians are supportive of adding non-union workers if needed, they are largely opposed (66%) to cutting worker benefits for union members in efforts to reduce cost. One-quarter (23%) would support this.
Link to the poll here: www.angusreid.org/
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You literally cannot legally privatize Canada Post as it’s how the government moves lower level classified info and parts, especially with other sovereign countries mail services. Some companies which I will not name are banned from doing it. So the only choice for the government is to reorganize it and bail it out
Labour costs are likely the largest cash based expense for Canada Post (write downs of asset values are not cash based). Changing the ownership structure of Canada Post won’t change the collective bargaining agreements with the various unions. There is federal legislation that prevents that from happening.
The postal service will continue to run at significant losses until labour costs align with the reality of reduced volumes of physical mail (the main source of revenue). That is a hurdle too high for anyone interested in taking over Canada Post.