August 27, 2007
Postal Reform - In the public interest?
On June 4, 2007, the Canadian Postmasters and Assistants Association, Canadian Union of Postal Workers and Public Service Alliance of Canada – Union of Postal Communications Employees took part in a roundtable on postal services and regulatory reform.
The roundtable was part of a study conducted for Canada Post Corporation by the Conference Board of Canada. Canada Post is a member of the Conference Board.
The Board conducted three additional roundtables with representatives from Canada Post, major competitors and major mail users. It did not organize a roundtable for the public even though Canada Post is a public institution. The Conference Board's study looks at a wide range of disturbing options, like complete privatization, the removal of the monopoly on letter mail, third party regulation and removal of the universal service obligation.
All three Unions – CUPW, PSAC-UPCE and CPAA – rejected these options and told the Board that the post office is a public asset that delivers an important public service, and any reform of this service should be based on the public interest, and on maintaining and expanding our public post office with its exclusive privilege.
All unions were united in putting forward the following positions:
On ownership of Canada Post Corporation, we favour the status quo– a Crown corporation that has the ability to offer competitive services such as parcel and courier delivery. Canada Post is not broke, so it doesn't need to be fixed. If Canada Post were privatized, it would not have to consider the public interest. A privatized post office would cut service in unprofitable rural and remote areas, and decrease if not eliminate the presence of the federal government in remote communities. It would almost certainly attempt to cut labour costs, either through reduced wages or job cuts. None of this is in the public interest.
On statutory monopoly, we believe Canada Post Corporation should maintain its monopoly over letter mail. This statutory monopoly, or the “exclusive privilege” to collect, transmit and deliver letter mail, is needed to generate the revenue to deliver mail to everyone at the same basic rate, whether they live in Resolute Bay, Nunavut or Toronto, Ontario. Members of Parliament voted unanimously to establish this exclusive privilege in 1981. It's in the public interest.
On the universal service obligation and letter mail pricing, we believe that the provision of universal service to everyone at a uniform basic rate has to stay. The public agrees – 91% of them think universal service at a universal price is one of the best things about Canada Post. This too is in the public interest.
On regulatory oversight, we don't see anything wrong with the current regulatory model. The Minister responsible for Canada Post reports directly to Parliament and to Cabinet, and there is a rate cap on standard letters (postage rates can only increase two-thirds of the rate of inflation). Members of Parliament are accountable to the public. We don't see the benefit of adding a third-party regulatory agency to the mix. International experience with third-party regulators – in the United Kingdom and the United States, for example – has not been particularly successful. Rather, we think the government's financial and policy framework for Canada Post could provide better direction and clear objectives regarding the public accountability of the corporation. That's in the public interest.
What's next?
The Conference Board of Canada says it aims to provide policy options and views from major “stakeholders” on what could be done to reform the postal system and its regulatory context. Their conclusions, to be delivered to Canada Post, will be based on a review of international experience and the input from the four roundtables. Canada Post will decide whether the report will be made public or not.
CUPW, PSAC-UPCE and CPAA await the report with interest and are hoping to see where and how the public interest fits in. As Unions representing the vast majority of workers at Canada Post, we are united in our position that postal services are public services, and that the public interest should take precedence over privatization, deregulation and any commercial and profit-making interests.
In solidarity,
Deborah Bourque
CUPW National President
PSAC National President
UPCE National President
Leslie Schous
CPAA National President
August 2007
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Date Modified : 2010/07/28
