Commonwealth_ As the federal inquiry into Canada Post‘s operations began on Monday, tensions were high between Canada Post management and the Canadian Union of Postal Workers (CUPW). The inquiry, convened by the labor minister, is set to examine Canada Post’s financial situation, business model, and workplace practices, with a report due in May. Both sides have entrenched their positions, with Canada Post management blaming operational problems on staff leaving early, while CUPW points to financial mismanagement within the Crown corporation.
Canada Post management presented a dire financial outlook during the first day of hearings at a downtown Ottawa hotel. CEO Doug Ettinger expressed concerns that Canada Post was at a “critical juncture” and needed to overhaul its business model. He emphasized that the current model, which relies on a five-day letter carrier service, is outdated and impeding Canada Post’s ability to transition into a daily parcel delivery service. “In today’s hyper-competitive e-commerce market, our current operating model holds us back,” Ettinger said.
Rindala El-Hage, the corporation’s chief financial officer, presented a dire outlook for the company’s financial future. She forecasted a loss of $900 million in 2025, which could increase to nearly $1.7 billion by 2029. El-Hage further warned that over the next five years, Canada Post could lose a cumulative total of $6.9 billion. She also stated that Canada Post was running out of cash and that it would deplete its reserves later this year if it hadn’t received a federal government bailout of over $1 billion.
Alexandre Brisson, the vice president of Canada Post, also brought attention to staffing issues. He explained that the collective agreement with CUPW prevents the corporation from reassigning letter carriers who finish their mail runs early. In Canada Post’s view, this lack of flexibility has created inefficiencies, particularly when carriers are finished with their duties but still required to remain on the clock for eight hours. Brisson argued that this results in unnecessary overtime and prevents Canada Post from adjusting its staffing to meet changing demands.
The inquiry’s commissioner, William Kaplan, a former law professor at the University of Ottawa, expressed confusion over this rigidity. Kaplan questioned why it was not seen as a problem that workers are paid for eight hours of work but often complete their tasks in less time. “How is it not a problem when somebody is paid for eight hours of work, and there’s more work that could be done, and the corporation could avoid paying overtime to someone else by having that person work for the eight hours for which they are paid?” Kaplan asked, addressing the union.
CUPW responded by arguing that the corporation’s financial mismanagement, not issues with workers’ flexibility, is the root cause of Canada Post’s staffing challenges. Jim Gallant, a grievance officer with CUPW, explained that the current system, where workers are incentivized to complete their tasks quickly and leave early, was a response to a rule change in 2003. At that time, Canada Post allowed carriers to skip their lunch breaks to finish work faster and leave early as a way to reduce overtime costs. Gallant contended that the current model motivates workers to efficiently complete their tasks and depart, instead of working the entire eight-hour shift. He contended that simply changing this policy wouldn’t make workers more flexible or solve the underlying issues.
CUPW President Jan Simpson also criticized the inquiry process, calling it “skewed” in favour of Canada Post, given the corporation’s greater resources and control over financial information. Simpson expressed skepticism about the outcome of the inquiry but also acknowledged the importance of using the opportunity to discuss the challenges facing the public post office and the contributions of postal workers. “Despite our misgivings about this process, CUPW values any opportunity to discuss the public post office and the contributions of our members,” Simpson said.
In the coming months, the inquiry is expected to delve deeper into the financial and operational challenges facing Canada Post and the role of the union in shaping workplace practices. The results of the inquiry may have significant implications for the future of Canada Post, its employees, and its ability to adapt to the changing postal and e-commerce landscape
