Postal bill to partially deregulate Canada Post – Last chance to make a difference – Call your MP

The federal government has proposed legislation to partially deregulate Canada Post. This legislation could undermine Canada Post's ability to provide universal public postal service. It could also set the stage for further deregulation which would be harmful to postal workers, the public and small business.

On October 29, 2007, the government introduced Bill C-14, an act to amend the Canada Post Corporation Act.  If approved, this legislation would partially deregulate Canada Post by removing international letters from Canada Post’s exclusive privilege to deliver letters.

Canada Post has an 'exclusive privilege' to collect, transmit and deliver letters, including international letters, in order to finance the corporation's universal service obligation.

The corporation estimates that international mailers (also known as remailers) currently siphon off $60 to $80 million per year in business. The big problem is that the remail business is increasing and if the big remailers continue to grow, Canada Post’s lettermail revenue will plummet as will its ability to provide service at affordable rates, especially in rural areas.  

 

A bit of background

International mailers collect and ship mail to other countries where the mail is processed and remailed at a lower cost. Some mailers ship to the United States, where the basic rate is slightly lower. Some ship to developing countries that have lower costs as a result of a two-tier international mail system that is designed, in part, to address the differences between developed and developing countries.  

At the moment, remailers illegally collect and ship letters. Canada Post has the exclusive privilege to collect, transmit and deliver letters in our country.  This is why remailers have lobbied vigourously over the last two years to change the exclusive privilege provisions of the Canada Post Corporation Act. Bill C-14 is the result of this lobby.

 

CUPW’s position

CUPW is opposed to this partial deregulation and concerned there may be plans for further deregulation.

If Canada Post were fully deregulated, private companies would have the right to compete for the lucrative letter market but they would not necessarily be obliged to provide universal service like our public post office. Deregulation would threaten revenues, services and jobs at Canada Post and ultimately its ability to provide universal service and a uniform rate for standard letters.

Only two countries have had any long-term experience with deregulation – New Zealand and Sweden.  New Zealand was deregulated in 1998. Workers there have suffered a dramatic decline in wage levels.

Sweden abolished its letter monopoly in 1993. Between 1993 and 2005, Sweden Post eliminated more than 16,000 jobs, while the competition created only 2000 jobs. The postage rate for large volume business mailers declined considerably while the rate for small business and the public increased by 90 per cent, far outstripping the accumulated inflation rate of 14 per cent (Note: a third of this increase was due to the imposition of a value-added tax on postal services).

 

What you can do

 Call your member of Parliament (MP): You can get your member of Parliament's name and phone number by calling Elections Canada at 1-800-463-6868 (no charge). Just tell the person who answers what you are looking for - the name and phone number of your MP - and give them your postal code.

Tell your MP:

• You want them to oppose Bill C-14, because it will reduce Canada Post’s exclusive privilege.
  
  
• The exclusive privilege is not some kind of side issue.
  
  
• The exclusive privilege makes it possible for Canada Post to provide universal public postal service.
  
  
• It allows the post office to carry out its mandate.
  
  
• The government should not be considering this major move without a proper and public review.
  
  
• Private sector companies like remailers have no interest in providing universal service. They simply want more of Canada Post's business, but without the universal service obligation.

Please make an extra effort to call your MP if you live in a Conservative or Liberal riding. To date, the Liberal Party has supported international remailers in their bid to reduce Canada Post’s exclusive privilege.

You can obtain additional information about this issue from your local or the union's website: http://www.publicpostoffice.ca