Fighting Closures, Privatization and Deregulation

The Canadian Union of Postal Workers (CUPW) is conducting a campaign to combat closures, privatization and deregulation and push the federal government and Canada Post to maintain, expand and improve public postal service and jobs.

Please stay informed by reading this fact sheet and other campaign information.


Governments around the world are deregulating their post offices at an alarming rate. A few are also privatizing.

To date, Canada's federal government has not privatized or deregulated its post office. Nevertheless, it has undermined the public nature of the post office over the last decade and a half with its insistence on profits and dividends.

In order to make profits, Canada Post has focused on commercial objectives rather than public interest objectives. The pursuit of these objectives has led the corporation to make cuts and close post offices, outlets and plants. Canada Post has also eroded its connection with the public - the people who own the post office - and its sense of public accountability is not what it once was.


The global context

The threat of postal privatization and deregulation looms large in the world today.

New Zealand, Sweden, Finland, Argentina, Columbia and Estonia have already deregulated their post offices by removing the exclusive privilege to deliver letters. The United Kingdom will fully deregulate in January of 2006 and Germany will follow at the end of 2007. The Norwegian government is proposing to deregulate by 2007. In May 2005, France passed a law to deregulate postal services in accordance with the European Union (EU) directive on postal services. All countries within the EU are set to eliminate postal monopolies as of 2009, unless studies determine that other steps are appropriate. This determination will be made on a country-by-country basis.

Most of the shares of the Dutch postal service have been sold, which means that the government no longer has a controlling interest in the post office. The German government has sold over 50% of Deutsche Post and will sell the rest before the end of 2006. The Danish government is selling a 25% stake of the country's postal service. Belgium's government plans on partially privatizing by the middle of October 2005. Japan's government has plans to begin privatizing no later than April 2008. Columbia is in the midst of privatizing. Argentina was privatized but is now back in state hands.

The United States is considering a variety of postal reforms. At the moment, it is not looking to privatize or deregulate its post office.

Note: This information reflects the situation as of September 12, 2005.


The domestic context

CUPW has been watching global trends with a view to assessing their influence on our federal government and our public post office. The union believes that, within the next two years, the government will announce an inquiry or mandate review to look at whether the post office should be privatized or deregulated.

So far, politicians have made reassuring remarks about post office closures, privatization and deregulation. Nevertheless, there are some extremely worrisome signs around the world and here at home.


Reassuring remarks:

During his recent review of Crown corporation governance, Treasury Board President Reg Alcock said that Canada Post "is not broken." He said, "There's no motive to privatize."(Source: Meeting with Reg Alcock, Treasury Board President, November 3, 2004)

CUPW asked the Liberal Party for its position on post office closures, privatization and deregulation of our public post office. The governing Liberals said "on the privatization or de-regulation, we are not planning any such measures." They said the "moratorium continues in effect today. However, the moratorium on closures does allow Canada Post to amalgamate post offices under certain conditions." (Source: Liberal Party of Canada, Policy Development, March 16, 2004)


John McCallum, the Minister responsible for Canada Post, recently said that the government's commitment to the moratorium on rural post office closures "remains unwavering."


Post office closures:

It is obvious to just about everyone that there is no moratorium on post office closures in rural and small towns. Approximately 50 rural offices have been temporarily or permanently closed. Most of these closures have occurred since 2001. (Source: Canadian Postmasters and Assistants Association, May 2005)


The policy framework review:

The government is conducting a review of the policy framework that was established for Canada Post in 1998. This framework stipulated objectives for Canada Post in areas such as return on equity, dividend policy, service standards and the basis for future stamp price increases. The government has not provided CUPW with information on its review.


Direction of Canada Post:

The federal government has appointed Moya Greene as Canada Post's new president. Ms. Greene was a central figure in the privatization of CN Rail and the deregulation of the airline industry. It looks like she hopes to make major changes to our public post office as well. After three short months at Canada Post, Ms. Greene announced she will close a postal plant in Quebec City. CUPW suspects that other closures are on the way. Canada Post is reviewing its national network. The review started in Quebec City (For more information, see fact sheet no. 2).


A few views from Moya Greene:

Ms. Greene's views on major post office issues are either vague or at odds with the federal government's position.


On the exclusive privilege:

Ms. Greene said the "Exclusive privilege seems far less exclusive today than it was even five years ago." (Source: Canada Post Intr@post, Web Log, May 30 , 2005)


On privatization:

Ms. Green said "in the foreseeable future, I do not see there being the necessary conditions for privatization. But the world is changing..." (Source: Performance Special Supplement 2005).


On the moratorium:

Moya Greene said that she's not looking to close post offices. She's looking to deliver rural service, but she is also looking at what's practical. Ms. Greene said that the corporation is not going to do anything until it goes into a community, consults with a community, and asks them what they prefer. (Source: CUPW Meeting with Moya Greene, June 21, 2005) But Minister McCallum's statement on the moratorium says Canada Post will simply consult with "local officials." (See fact sheet no. 2)

Campaign objectives

CUPW wants firm commitments on closures, privatization and deregulation. Our campaign aims to:

1. Stop closures.

2. Get the government to instruct Canada Post to keep post offices open if that is what a commnity says it wants, or improve service by

delivering mail door-to-door or to rural mailboxes.

3. Get the government and Canada Post to agree to a uniform and democratic process for changing the postal
network.

4.Raise awareness of the vital role played by our public post office and the importance of public services with public accountability.

5. Raise awareness of the dangers
associated with post office deregulation.

6. Stop the privatization or deregulation of Canada Post.

7. Maintain, expand and improve public postal services and jobs.