{"id":10347,"date":"2015-03-04T06:11:26","date_gmt":"2015-03-04T14:11:26","guid":{"rendered":"http:\/\/www.nexusnewspaper.com\/?p=10347"},"modified":"2015-03-18T10:17:56","modified_gmt":"2015-03-18T17:17:56","slug":"the-cheques-no-longer-in-the-mail-what-will-happen-to-canada-post-as-it-struggles-to-remain-relevant","status":"publish","type":"post","link":"https:\/\/www.nexusnewspaper.com\/newsite\/2015\/03\/04\/the-cheques-no-longer-in-the-mail-what-will-happen-to-canada-post-as-it-struggles-to-remain-relevant\/","title":{"rendered":"The cheque\u2019s no longer in the mail: what will happen to Canada Post as it struggles to remain relevant?"},"content":{"rendered":"<p>At Canada Post\u2019s Victoria sorting plant, manager Kevin Pearson strides onto the huge facility floor and says, \u201cThis is where it happens.\u201d At 3:30 on a Tuesday afternoon, \u201cit\u201d means quite a lot.<\/p>\n<p>Long, shiny conveyor belts snake from laser-scanning machines into the caverns of trucks and suck up packages of all shapes and sizes. The packages are whisked to a network of sorting belts, where they are directed by hand into appropriate destination bins.<\/p>\n<p>In another area, employees wheel a conveyor into the back of an outgoing truck and begin filling it with packages from retailers and post offices all over Victoria. They\u2019re on a tight deadline; the truck leaves at 5 pm, ready or not, to catch the ferry.<\/p>\n<p>\u201cWe process about 7,000 packages a day here,\u201d says Pearson above the din and bustle. \u201cAnd some of those are boxes of letters, up to 300 letters per box. It\u2019s a lot.\u201d<\/p>\n<p>Nationally, Canada Post has over 66,000 employees and serves roughly 15.5 million addresses. In 2013 alone, Canada Post delivered 3.8 billion pieces of mail, or 10.5 million parcels and letters every day. To do this, drivers clocked over 79 million kilometres, which is the equivalent of driving to Mars.<\/p>\n<p>In Vancouver alone, the package depot handles 30,000 packages from retailers in Asia every single day. As a public corporation, Canada Post pays dividends to the federal government. In the last 10 years, it has contributed over $1 billion to public coffers.<\/p>\n<p>But new technologies are continually redefining how we relate to one another and changing how companies like Canada Post must operate. Bills, catalogues, and bank statements are all now available in electronic versions, which has undermined an important source of revenue for Canada Post.<\/p>\n<p>\u201cThe government has made it clear that it is not interested in subsidizing Canada Post,\u201d says Pearson, \u201cand we\u2019ve had to adapt.\u201d<\/p>\n<p>With letter revenue declining, the corporation has begun actively shifting its focus to parcel delivery, especially from online retailers. They now deliver two out of three packages shipped within Canada.<\/p>\n<p>\u201cWe were the number one Amazon carrier of choice during the Christmas season,\u201d says Pearson. \u201cAnd we delivered 95 percent of parcels on time.\u201d<\/p>\n<p>But a shift to packages means the company is cutting resources devoted to processing letters. In 2013, Canada Post announced that it would stop all home delivery of letters by 2017, routing the mail for about five million urban addresses into community mailboxes instead. This will save billions of dollars in labour, but it means the loss of a significant number of jobs.<\/p>\n<p><b>The postal union<\/b><\/p>\n<p>Janet Barney is president of the Victoria Local of the Canadian Union of Postal Workers, and she\u2019s not impressed with the changes, to say the least.<\/p>\n<figure id=\"attachment_10349\" aria-describedby=\"caption-attachment-10349\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1416.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10349 size-medium\" src=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1416-300x201.jpg\" alt=\"\" width=\"300\" height=\"201\" srcset=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1416-300x201.jpg 300w, https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1416.jpg 700w, https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1416-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-10349\" class=\"wp-caption-text\">Janet Barney is the president of the Victoria Local of the Canadian Union of Postal Workers (photo by Keagan Hawthorne\/<em>Nexus<\/em>).<\/figcaption><\/figure>\n<p>\u201cI think it\u2019s terrible. These cuts are totally uncalled for,\u201d says Barney. \u201cFinancially, Canada Post has been pulling in millions of dollars in profit, 17 out of the last 18 years. So there\u2019s no need for these cutbacks that hurt communities.\u201d<\/p>\n<p>Losing jobs and cutting services have knockdown effects throughout the community, which students will feel. The loss of door-to-door delivery means far fewer employment opportunities, especially entry-level letter-carrier positions, which are accessible jobs for students.<\/p>\n<p>But Barney says the issue isn\u2019t just loss of jobs. There are many hidden costs in stopping door-to-door delivery, since the benefits of the service, though often unnoticed, extend beyond just delivering mail.<\/p>\n<p>\u201cLetter carriers are people who have a strong sense of public service,\u201d says Barney. \u201cThey find and rescue stray dogs. They call 911 because they know there\u2019s something wrong with a house when the mail hasn\u2019t been picked up in three days. They\u2019re out there talking to people. Seniors who are alone at home, they\u2019re waiting for you. Without door-to-door, you don\u2019t get to know your customers, because you\u2019re just going to a number in a box. You lose that connection with the people.\u201d<\/p>\n<p>The union believes it is ideology, not economics, that\u2019s motivating the changes at the crown corporation.<\/p>\n<p>\u201cWe think these changes are being pushed by the Harper government, and we think their ultimate plan is to privatize Canada Post,\u201d says Barney. \u201cThey\u2019re saying that we\u2019re a burden to the taxpayers. But the revenue that Canada Post makes goes to fund health care and other federal programs that benefit taxpayers.\u201d<\/p>\n<p><b>Life as a letter carrier<\/b><\/p>\n<p>Bob is a letter carrier who experiences the cuts and changes to Canada Post every day (he wished to remain anonymous for this story).<\/p>\n<p>Because of the budget cutbacks, working conditions have deteriorated at the corporation, with high levels of animosity between management and unionized workers. And even though his job is being phased out, Bob says being a letter carrier is \u201chaving to do more than there is allotted time for.\u201d<\/p>\n<p>There are appealing aspects to the work, and Bob enjoys the relative freedom, the exercise, and being outside in the community. The romance of being a letter carrier attracts \u201ceverybody from academics to addicts, musicians and artists, to drunks. The sorting floor is a real melting pot of personalities.\u201d<\/p>\n<p>But the job is designed by an equation that doesn\u2019t take into account other factors, like days when there\u2019s double the mail, or bad weather.<\/p>\n<p>\u201cYou\u2019re basically left feeling like a corporate packhorse,\u201d says Bob. \u201cThe job was designed by people who have never done it before.\u201d<\/p>\n<p>Bob is required to deliver everything that comes across his sort desk every day. Most days, he has just enough time to get this done. But on a busy day, finishing a route in eight hours is physically impossible. The corporation does pay employees for working overtime, but staying late at work isn\u2019t optional.<\/p>\n<p>\u201cIt\u2019s not so bad here in Victoria because it\u2019s generally mild,\u201d he says. \u201cBut if you\u2019re in Winnipeg, and it\u2019s the middle of winter at -35, and you\u2019re staying an hour or two later out in the cold and snow, well, no amount of overtime pay compensates for that.\u201d<\/p>\n<p>\u201cIt\u2019s a dirty game they\u2019re playing,\u201d he says of management. \u201cEveryone is overburdened and to even survive the workload you have to break the rules.\u201d<\/p>\n<p>Bob is referring to safety rules that stipulate how a letter carrier is to move up and down a street. They are only allowed to cross at crosswalks and intersections, not allowed to hop fences, hedges, or rails, and must visit houses in a pre-determined order that\u2019s not always the most efficient. To get their work done, postal workers must find ways to circumvent these rules.<\/p>\n<p>\u201cManagement knows that it\u2019s happening, but they let it slide because if the work is being done in an eight-hour day, it justifies the heavier workload,\u201d he says. \u201cSo they come up with these reports saying that we can do it in eight hours. What they don\u2019t put in the reports is that carriers have to cheat to do it. And of course, if you had an accident, they would say, \u2018Well, you weren\u2019t following the rules, you were cheating, so we don\u2019t have to pay you compensation.\u2019\u201d<\/p>\n<p>Workers\u2019 Compensation Board claims at Canada Post are so high that in the case of a serious injury they will send out an accident investigator to verify the employee\u2019s version of events.<\/p>\n<p>\u201cThe management will use any excuse not to pay compensation,\u201d says Bob. \u201cThe detective will look around and say, \u2018Oh, you stepped off onto the grass here, so you weren\u2019t following your route.\u2019 Then the employee is on the hook, not the corporation.\u201d<\/p>\n<p><b>The economics of privatization<\/b><\/p>\n<p>Camosun business professor Bijan Ahmadi agrees with Barney that many of the changes at Canada Post are ideologically driven. \u201cMy question is: \u2018What is the goal of Canada Post over the next few years?\u2019\u201d says Ahmadi.<\/p>\n<figure id=\"attachment_10348\" aria-describedby=\"caption-attachment-10348\" style=\"width: 201px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10348 size-medium\" src=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424-201x300.jpg\" alt=\"\" width=\"201\" height=\"300\" srcset=\"https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424-201x300.jpg 201w, https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424.jpg 468w, https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424-300x449.jpg 300w, https:\/\/www.nexusnewspaper.com\/newsite\/wp-content\/uploads\/2015\/03\/DSC_1400-e1425406778424-180x269.jpg 180w\" sizes=\"auto, (max-width: 201px) 100vw, 201px\" \/><\/a><figcaption id=\"caption-attachment-10348\" class=\"wp-caption-text\">Packages going through Victoria\u2019s Canada Post sorting facility (photo by Keagan Hawthorne\/<em>Nexus<\/em>).<\/figcaption><\/figure>\n<p>Ahmadi believes that, unfortunately, the answer is privatization. As a crown corporation, Canada Post pays corporate dividends to the government. In 1981, the federal government created Canada Post Corporation as an independent, publicly owned entity whose mandate was to deliver mail to everybody in the country, regardless of where they live.<\/p>\n<p>Canada Post operates over the largest jurisdiction of any postal system in the world, even Russia. Amazingly, Canadians still pay some of the lowest postal rates globally. To send a letter in Canada costs just over half of what it would cost in Norway.<\/p>\n<p>To accomplish this feat, Canada Post delivers mail within urban centres at a profit, which is used to operate its mail service in more expensive, remote places. A private corporation would not have the same incentive, since the mandate of a private company is to make profit for its shareholders.<\/p>\n<p>In business terms, the situation in which a service necessary for social welfare doesn\u2019t make economic sense is called a market failure. For example, a company that only delivered mail to the Arctic would be hard-pressed to make any money without charging exorbitant rates for their services.<\/p>\n<p>Without government intervention, a company operating on the free market would have no incentive to deliver mail to Inuvik when they could concentrate on more profitable urban centres.<\/p>\n<p>Ahmadi believes this is why it\u2019s important to keep Canada Post a public corporation. \u201cThat\u2019s what crown corporations are good at doing: correcting market failures. And they provide good service,\u201d says Ahmadi. \u201cI know that something sent to Inuvik has as much of a chance of getting there in five days as something sent to Toronto. That\u2019s important to us as Canadians. We require a unifying service like that.\u201d<\/p>\n<p>Ahmadi does believe that Canada Post should operate as efficiently as possible, and if that means converting door-to-door delivery to community mailboxes, he\u2019s all for it. While it must maintain a certain standard of service for all Canadians, the corporation should not be \u201can inefficient provision of efficient resources,\u201d he says.<\/p>\n<p>If Canada Post can modernize and stay efficient while still providing services, this means more money is being paid to Ottawa in dividends and taxes, money that can fund health care and schools.<\/p>\n<p><b>Canada Post and Camosun students<\/b><\/p>\n<p>Second-year Marketing and Communications student Connor Rencher can\u2019t remember the last time he sent anything in the post. Like many students, the majority of Rencher\u2019s personal communication takes place online or through texting.<\/p>\n<p>And while Rencher does order items online, he chooses whichever shipping provider is cheapest.<\/p>\n<p>Nathan Gartner, a first-year Electronics Engineering Technology student, however, believes that Canada Post and physical mail still have a role to play in personal communications today. Gartner uses the post to keep in touch with family. He doesn\u2019t think that ending door-to-door delivery makes sense.<\/p>\n<p>\u201cWhy cut jobs? I\u2019ve always had this romantic notion that I\u2019d like to be a letter carrier,\u201d he says. \u201cYou\u2019re out in the community and it\u2019s a physically healthy job to have. Maybe I\u2019m just old-fashioned, but I think it\u2019s important that jobs like that exist.\u201d<\/p>\n<p>But Gartner thinks the post is important as more than just employment.<\/p>\n<p>\u201cMy brother is in India right now. It\u2019s nice to hear from him on email, because I get to see pictures of what he\u2019s doing, but it would be really special to get a letter,\u201d he says. \u201cIt\u2019s epic that it would make it that far. For years I sent letters back and forth to a friend of mine in Nelson, and it really makes it special when something has to travel like that. Everything we are used to is happening too fast; all of our communications are instant.\u201d<\/p>\n<p><b>The sociology of communication<\/b><\/p>\n<p>Camosun communications professor Lois Fernyhough agrees with Gartner that we may have lost something in the switch to all-digital communication.<\/p>\n<p>\u201cPeople crave speed,\u201d says Fernyhough. \u201cWe seem to equate technological progress with moral progress, which is something we\u2019ve done since the industrial age.\u201d<\/p>\n<p>But speed is not always the same as quality when it comes to communication.<\/p>\n<p>\u201cThe medium you choose to deliver your message imparts a certain communicative value to the message and actually changes it somewhat,\u201d says Fernyhough. \u201cGenerally speaking, the ease and speed at which we can communicate digitally is much different than sending off a letter\u2026 With electronic media, it\u2019s very easy to send things off quickly, sometimes without thinking.\u201d<\/p>\n<p>Still, there are benefits to the improvements of ease and speed when it comes to communication. And communication, like any other facet of society, is bound to evolve along with the rest.<\/p>\n<p>\u201cWould you want your mail to be delivered by somebody walking to Toronto? Or riding a horse? I don\u2019t think so,\u201d says Fernyhough. \u201cIs the model of Canada Post doomed to be on the reject pile superseded by technology? Maybe. Things are changing, and new models have to take the place of what has gone before. It had to be there to pave the way, but it soon gets superseded.\u201d<\/p>\n<p><b>The future of Canada Post<\/b><\/p>\n<p>Back in the postal union office, Barney disagrees with Fernyhough\u2019s assessment of the future of Canada Post. She points to the rise of e-commerce and the switch to parcel delivery as a positive step by management to keep the corporation current with society\u2019s changing needs. In fact, the increased package volume from online shopping has actually created jobs in Victoria in recent years, she says.<\/p>\n<p>Still, the union believes that there are other ways to modernize without having to cut jobs or services when it comes to lettermail delivery.<\/p>\n<p>Barney points to postal banking as a possible revenue-generating stream that could pay for currently unprofitable but important services. With postal banking, the post office would offer basic banking services like cashing cheques, taking deposits, and offering small loans. It exists in many countries in Europe, where it generates large revenues to help their postal system cover other costs.<\/p>\n<p>The precedent and legislation for Canada Post to offer banking services is well established; up until 1968, when a push by big banks and the government shut the service down, Canada Post did just that. Barney says many rural communities across Canada are lacking basic banking services.<\/p>\n<p>\u201cSmall communities on the island here don\u2019t even have a credit union. But every community has a post office. So Canada Post could easily offer postal banking in rural communities,\u201d she says. \u201cThe big banks have all pulled out because they\u2019re driven by profit and they can\u2019t make enough. We already offer money orders and money-grams. The post offices are already there; they all have a safe and cash registers. There would be minimal infrastructure needed.\u201d<\/p>\n<p>The way forward for Canada Post may well be to step back into a stronger role as a pivotal link between people and communities. For students, this means better contact with families and more efficient package delivery when they order online. Despite the changes and disruptions it faces, Canada Post is doing its best to continue being a unifying force over the vast distances that are the reality of life in Canada.<\/p>\n<p>Camosun student Nathan Gartner believes that the best way forward is to hold on to what we have.<\/p>\n<p>\u201cIs the postal system still relevant or is it just a romantic notion?\u201d he says. \u201cI don\u2019t know. But I think it\u2019s still important. I think it\u2019s special.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At Canada Post\u2019s Victoria sorting plant, manager Kevin Pearson strides onto the huge facility floor and says, \u201cThis is where it happens.\u201d At 3:30 on a Tuesday afternoon, \u201cit\u201d means quite a lot. Long, shiny conveyor belts snake from laser-scanning machines into the caverns of trucks and suck up packages of all shapes and sizes. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10349,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10,141],"tags":[],"class_list":["post-10347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-march-4-2015"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/posts\/10347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/comments?post=10347"}],"version-history":[{"count":2,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/posts\/10347\/revisions"}],"predecessor-version":[{"id":10351,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/posts\/10347\/revisions\/10351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/media\/10349"}],"wp:attachment":[{"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/media?parent=10347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/categories?post=10347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nexusnewspaper.com\/newsite\/wp-json\/wp\/v2\/tags?post=10347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}