Deregulation of Canada Post would destroy jobs and transform good jobs into bad jobs

The federal government is conducting a review of our public post office called the Canada Post Corporation Strategic Review (CPCSR). The CPCSR is considering deregulation of our universal public postal system. This is the third in a series of five bulletins on good reasons to oppose deregulation of Canada Post.

Deregulation is likely to harm postal workers here in much the same way as it has hurt workers in other countries. Only Sweden and New Zealand have had any long-term experience with postal deregulation. Postal workers in New Zealand suffered a dramatic decline in wage levels after their post office was deregulated in 1998. Thousands of postal workers’ jobs were eliminated by Sweden Post after it was deregulated. Between 1993 and 2005, Sweden Post destroyed 16,000 jobs while the competition created only 2000 jobs.

There are other good reasons to believe that the number and quality of jobs in the postal sector would decline if the letter market is deregulated and opened to competition. A 1996 study conducted by Coopers Lybrand concluded that deregulation would lead to a massive loss of volumes and positions at Canada Post. The financial crisis resulting from volumes and revenues lost to competition would obviously leave our post office with less money to provide workers with decent wages, benefits and working conditions.

Rural areas and women would be hardest hit. A financially-strapped post office would not be able to maintain much service or employment in high cost rural areas. A review of Canada Post conducted from 1995 to 1996 warned that any reduction in rural service would adversely affect women workers, as the post office is one of the few secure, good paying jobs available to women in rural parts of the country. Indeed, 86.9 per cent of rural counter workers and 71.5 per cent of rural route mail delivery staff are female.

 

What can you do to preserve decent jobs?

Speak up. Say no to deregulation. If you haven’t signed a Hey Harper – Hands off my post office postcard yet, ask your steward or a local union representative for one.