Canadian Union of Postal Workers' Strike Shows The Union's Disregard For The Marketplace

Author: Michel A. Bell
Published: June 11, 2011 at 8:10 am
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The current rotating strike by Canadian Union of Postal Workers (CUPW) is a classic example of out of touch union leadership shoving a corporation over the precipice. CUPW should review quickly jobs banks and other anti competitive, so-called victories that auto unions extracted from earlier, inept General Motors’ (GM) managements. These and other conquests contributed to GM’s USA workforce shrinking from a peak of around 600,000 in 1979 to 40,000 in 2009!

The market place is alive and well; it changes; competitors enter and leave; and corporations will survive only if they adapt and improve efficiencies, continually. It is that simple.

Though Canada Post is a government corporation, it is meant to operate like a private corporation with a board of directors. Its charter states:

As required by the Canada Post Corporation Act, Canada Post will charge postage rates that are fair and reasonable and, together with other revenues, are sufficient to cover the costs incurred in its operations.

Traditional mail operation’s future is bleak. The Internet, email, and modern private sector couriers will ensure this. Already, Canada Post has been experiencing lower volumes. Their 2009 annual report declares:

  1. Volumes in the core Canada Post segment dropped by almost 8% in 2009, wiping out close to five years of growth.
  2. Volumes in our transaction mail business continue to decline: transaction mail volume per address declined for the fourth straight year, and the rate of decline also increased for the fourth straight year.
  3. CUPW leaders, why strike? Now is the time for your members to help transform and energize Canada Post; not demand more from this corporation that’s struggling with a shifting landscape! The current strike stresses Canada Post’s tenuous position. As folks adjust to life with unreliable mail delivery during the strike, already volumes have fallen, and Canada Post is adjusting working schedules.

    I stopped doing business with Canada Post over 15 months ago. To distribute my books around the world, I used my small rural, local Canada Post office for about six years: a post box, and its mail delivery. In late 2009, the office’s credit card machine broke and could not process transactions. During this time, I went to the post office to mail books. I had no cash, needed around $25 mailing cost, so I offered to write a check. The staff knew me well, but said, “their” (the post office management) policy is not to accept checks, so I should go elsewhere. Imagine turning business away, joyfully!

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Article Author: Michel A. Bell

Michel A. Bell is a Christian, Canadian, conservative, former senior business executive, founder and president of Managing God's Money. He held many senior finance, strategy, and planning positions in the Alcan Inc. …

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