Canada Post is a vital public service relied upon by millions of Canadians, yet it teeters on the brink of collapse.
The root of this crisis lies in the poor management practices at the top. Executives have made disastrous decisions, driving the postal service into the ground, all while awarding themselves excessive salaries and bonuses. As the company faces insolvency, discussions of privatization threaten to eliminate 55,000 good union jobs. The prevalent narrative unfairly blames workers for problems they did not create, while the real issue is the series of poor decisions made by leadership.
Despite a significant drop in letter mail volumes, Canada Post’s management continued to spend extravagantly, including a $4 billion “transformation” plan that failed to yield positive results. Consequently, the company is left with costly infrastructure that remains idle, resulting in a staggering loss of nearly $850 million in 2023. Despite this, management has maintained a lack of transparency regarding their executive compensation.
In the face of such losses, workers and their unions are scapegoated, facing demands for wage cuts and reduced benefits. The union, CUPW, has highlighted a notable 56.5 per cent increase in non-labour spending since 2017, while wages for workers rose only 14.1 per cent. Management even ceased contributions to the workers’ pension fund, jeopardizing the retirement security of thousands of workers. In contrast, they have increased the number of superintendents and management positions, even as delivery routes and job positions were cut.
Instead of collaborating with the union to address these issues, Canada Post has sought to compel a vote on their latest offer to workers through federal intervention. This tactic undermines the union’s right to negotiate freely and pressures workers to agree without proper deliberation and consideration. Such forced votes are not representative of fair bargaining practices, as they tilt the scales in favour of management.
The company is described as “effectively insolvent” and in need of a $1 billion government bailout; advocates are pushing for privatization. This pattern of behaviour is troubling: run a public service into the ground, scapegoat the union, and then hand it over to private corporations that prioritize profits over service and cut jobs.
It is time to stop blaming workers and ask hard questions about Canada Post’s mismanagement. The evidence is glaring; high executive pay, bonuses, and reckless financial decisions have devastated this essential service.
If we want a postal service that serves everyone, we need leadership focused on public service rather than personal gain and accountability for those who led us here. It is the government’s responsibility to ensure this accountability while respecting collective bargaining processes.
Danny Cavanagh,
President, Nova Scotia Federation of Labour