Federal government puts rural postal service at risk

For Immediate Release

Ottawa - Rural postal service is at risk if the federal government proceeds with its bill to partially deregulate Canada Post according to the Canadian Union of Postal Workers (CUPW).

On October 29^th, the government introduced Bill C-14, an Act to amend the Canada Post Corporation Act. If passed, this bill would partially deregulate Canada Post by removing international letters from Canada Post’s exclusive privilege to collect, transmit and deliver letters. Second reading began on November 20^th and could continue this week.

The government says Bill C-14 is targeted to a specific issue, which is enhancing competition in the outbound international mail business.

“The government tends to side-step the fact that Bill C-14 is a move towards deregulation,” said Deborah Bourque, National President of CUPW. “The bill erodes a fundamental feature of public postal service - the exclusive privilege.”

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

“The exclusive privilege is the magic that makes the post office work,” said Bourque.

Canada Post says international mailers already siphon off $60 to $80 million per year in business and that this business is growing. If this growth continues, the corporation’s letter revenue will plummet as will its ability to provide service at affordable rates, especially in the rural and remote parts of the country that are the most costly to serve.

CUPW is calling on all members of Parliament to take a second look at the bill and to oppose it in the vote on second reading.

 

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