RESIGN NOW!

Sisters & Brothers:

Please consider supporting this urgent action request.  We need to put pressure on the government to review the deplorable decisions being made by CPC management to abandon service to Canadians and provoke conflict with postal workers.

Please forward the petition link to your contacts and ask them to sign as well.

The Struggle Continues!

 

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http://www.petitiononline.com/19171917/petition.html

More on the History of Canada’s Postal Transformation

Sean Silcoff wrote in April 22, 2008 edition of the Financial Post that Canada Post’s transformation program could jeopardize the overall health of the company pension plan:

“But volatile markets mean Ms. Greene may need to conserve cash in case there is a shortfall in the post office’s pension plan. Ms. Greene inherited a $1.4-billion plan deficit when she joined in 2005. That was gradually whittled down by rising markets and $719-million in special contributions.”(1)

As was noted in a previous article on the subject, A Brief History of Canada’s Postal Transformation, the conserving of cash was not done, and the amount now owing to the current pension deficit is 3.2 billion dollars, (see What are Solvency and Going Concern Deficits? for more info on the current pension deficit).

Canada Post’s blueprint for the future did not calculate a market crash and did not conserve any cash for a just-in-case scenario. Now they do not have the money, as Mr. Silcoff predicted, for the pension.

Canada Post is now looking to recover this miscalculation through the bargaining of a new collective agreement with their largest union, the Canadian Union of Postal Workers.

If the cost savings in the new collective agreement are not met, especially in relation to the unforeseen requirement to pay for the pension deficit, Canada Post will not be able to meet its target of turning a $250 million dollar profit in 2017.(2)

Canada Post is also not financially in the position to sustain the pension plan if another market crash occurs again. There are no cash reserves for this.

The corporate decisions of the last four years have put Canada Post into a financial crisis and it will be interesting to see how it will overcome the financial obstacles it has created. That is if it can, or it may have to be overhauled.

(1) http://www.financialpost.com/related/topics/Volatility+Canada+Post+upgrades+hold/464307/story.html
(2) http://www.dbrs.com/research/233704

By:Charles Sullivan

A Brief History of Canada’s Postal Transformation

An ambitious plan that started with the ideal of being self-funded with no debt has escalated into over 2.7 billion in borrowed funds and projected to go over 4 billion. What happened?

With this growing debt, can Canada Post survive another economic recession?

The 2007 Canada Post Annual Report gave a positive spin to the idea of postal transformation, “Over the next five years, we could invest up to $1.9 billion of capital to support these major improvements. This is in addition to the $1.1 billion of capital investment that is needed to support ongoing operations. We will prioritize our investment based on the greatest need and spend only what we can afford.” (1) It was to be self-funded and if the funding was not available, the transformation would be delayed.

Canada Post had just finished in 2006 paying off the last 240 million of pension liability and the various portions of the pension plan for 2007 had a savings of 414 million dollars over the previous year.(2)

This 414 million dollars in savings for 2007 alone were to be the self-funding catalyst for postal transformation. This surplus was expected to repeat itself over the five year plan.

It was a risky and aggressive approach that would soon unravel.

In 2008 the markets crashed. It put Canada Post into a 2 billion dollar pension shortfall. Growth was no longer in the 5% but in the negatives. There was no money for the transformation.

Financial and lease commitments had already been made. Canada Post was caught unprepared. Federal law stipulated the corporation could only borrow up to 300 million dollars and the commitment to the transformation was pushing this limit.

The blueprint was an in-house solution. The Federal Government kept Canada Post at arms length and as long as it was self-sufficient and not needing neither financial or political intervention, it was allowed to chart its own course.

First, Canada Post tried to change the Pension regulations so that they wouldn’t be immediately forced to repay. On March 16th, 2009, Moya Greene, CEO of Canada Post wrote a letter to the Hon. Jim Flaherty, Minister of Finance to “Exempt federal Crown Corporations from solvency deficit rules,” and the second option was to change the way defined benefit plans work.(3) Ms. Greene was looking for a way to not immediately re-pay the pension shortfall so that the money could be used for the transformation. A reply to this request has not been found but it must have obviously been turned down.

Ms. Greene then tried a second approach, according to a Toronto Star writer and ex-CEO of Canada Post, Michael Warren. She went to Stephen Harper for ask permission for Canada Post to partially privatize in order that she could arrange funding. She was denied.(4) The Government was now forced to get involved into problem-solving the financial crisis. In December 2009, Canada Post’s borrowing limit was extended to 2.5 billion dollars.(5) The solution was for Canada Post to issue public bonds that were guaranteed by the Government of Canada and a 400 million dollar credit facility. This way, the Government did not have to directly intervene with a taxpayer monies.

There has never been an announcement by Canada Post on why they switched from a self-funding formula to external borrowing or simply delay until the funds were internally available – as promised on a number of occasions in the 2007 Annual Report.

Nor has there been any explanation why they did not ‘sharpen’ the traditional model first, which could have absorbed the loss of 10% of the workforce with little impact, flex mail routes, rotating shifts instead of fixed-night shifts, which would see a tremendous health savings, more truck instead of air transportation and less managers per employee would save Canada Post over 400 million annually. Plus, labour-relations would not be so intense, nor would the corporation become a concern for the the Federal Government as it is now.

Neither does the Postal Transformation blueprint address the two major concerns that directly effect Canada Post’s long-term health: the pension problem and the legislated postal services to money-losing non-urban centres.

The 2.7 billion dollar forecast debt which may rise to 4 billion,(6) was not planned or intended. If the Corporation goes through another economic recession along with the extra added overhead expense of Postal Transformation, it may need another extensive cash infusion from the Federal Government or be forced to privatize.

During the midst of this crisis, Moya Greene resigned on May 27, 2010(7) and moved over to the Royal Mail in Britain to lead their transformation. There is no reference in any Canadian political or business journal that she was compelled or forced to leave over the issue but the timing suggests that she had struck out and had no other options.

In the meantime, Canada Post continues to proceed on transformation, with no intention of trimming back.

(1) Canada Post   2007 Annual Report. This was repeated at least two other times in the report. See also Pg. 4 and Pg. 52
(2) Canada Post 2007 Annual Report. Pg. 59
(3) http://www.docstoc.com/docs/53877461/The-Honourable-Jim-Flaherty-PC-MP-Minister-of-Finance
(4)http://www.thestar.com/opinion/editorialopinion/article/845027–the-future-of-canada-post
(5) http://www.canadapost.ca/cpo/mc/aboutus/news/pr/2010/2010_jan_special_report.jsf
(6) http://www.parl.gc.ca/40/3/parlbus/commbus/senate/Com-e/fina-e/04evb-e.htm?Language=E&Parl=40&Ses=3&comm_id=13
(7) http://en.wikipedia.org/wiki/Moya_Greene

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http://canadasmodernpost.wordpress.com/2011/06/10/more-on-the-history-of-canadas-postal-transformation/

Canada Post Corporation Rejects CUPW's Offer to Suspend Strike Action

Canada Post’s Response

Today, in response to a request from Labour Minister Lisa Raitt, the Canadian Union of Postal Workers agreed to suspend our strike activity.. Our only condition was that the terms of our collective agreement would be reinstated. At 6 p.m. this evening, we received conformation that Canada Post management was rejecting our offer. Management's current attitude is much different than it was in 1991 when CUPW suspended our strike action to assist mediation efforts. At that time, CPC agreed to reinstate the collective agreement.

 

Drug Coverage to Resume

Yesterday, we raised the issue of CPC's decision to stop drug coverage. We explained this was causing enormous hardship for many of our members, especially those on disability insurance who were taken completely by surprise by CPC's unilateral decision. Today, following the Union’s intervention, CPC's Chief Operating Officer Jacques Côté informed us that drug coverage would be reinstated but with a deductible of $100.00 per prescription. The plan would cover 80% of all covered medicines. The Union has requested that the Corporation provide this in writing in order to fully understand the commitment in question.

 

CPC Keeps Moving Backwards

 

At yesterday's meeting, CPC reneged on more of their previously published positions. They told us that they were withdrawing their proposal for arbitration of their demand for a Short-Term Disability Plan. Instead, they are back to demanding that the plan be implemented effective January 1, 2012.

Also they have withdrawn their agreement to CUPW's proposal for a joint committee to examine financial services and banking and reneged on their commitment for more time values for work related to admail. As expected, they explained their decisions by distorting CUPW's statements, misinterpreting our demands and exaggerating the costs of our proposals.

 

CUPW: Still at the Table

Negotiations meetings are scheduled for this evening and will continue over the weekend.

For our part, we have notified CPC that we are still prepared to make more adjustments in our previously-submitted global offer, provided that we see some genuine movement on the part of CPC on our demands that aim to address real problems the members live day to day in the work place.

 

What’s Ahead of us

Today and over the weekend, CUPW’s National Executive Board will meet and assess the situation; everyone will be informed of the decisions as they occur.

SUCH A GREEDY EMPLOYER!!

Canada Post Corporation Rejects CUPW's Offer to Suspend the Strike

For Immediate Release June 10, 2011, 19:00

In response to today’s request from Labour Minister Lisa Raitt, the Canadian Union of Postal Workers agreed to suspend strike activity. The union’s only condition was that the terms of its collective agreement would be reinstated.

In 1991, when CUPW suspended its strike action to assist mediation efforts, Canada Post agreed to reinstate the union’s collective agreement.  At 6 PM this evening, Canada Post’s management rejected the union’s offer.

“This behaviour on the part of Canada Post Corporation is totally unacceptable,” said Denis Lemelin, CUPW National President and chief negotiator. “We are showing that we are willing to suspend our strike in good faith and with goodwill, as the Minister

requested. Once again, Canada Post is rejecting any of our efforts to resolve the issues.”

As a result of Canada Post’s rejection, the union will continue its strike action in an effort to force Canada Post to negotiate. This weekend, postal workers in Red Deer, Alberta, are

on the picket line.

Negotiations meetings are scheduled for this evening and will continue over the weekend.

/dn cope 225

POSTAL WORKERS ENGAGE THE STRIKE - ENRAGE THE BOSS

 At 10:59 PM Thursday June 2 CUPW members in Winnipeg walked off the job in our first legal strike in 14 years. All members who participated at the plant and at the depots should be congratulated for their efforts and dedication. Our lines were strong and the media took notice.

Following our return to work Hamilton went out for two days, followed by Montreal [Monday] then Moncton / Victoria [Tuesday]. National office will decide who is out on Wednesday.

A TRULY DESPERATE EMPLOYER

It has become evident that the employer is about to blow a gasket as a result of the strike strategy adopted by the National Union.  We have been able to keep the employer’s payroll costs near maximum levels while their volumes and revenues are heading down the toilet quickly. 

Inside workers across the country are reporting that volumes in the mail processing plants are dropping like a lead balloon and carriers and couriers are reporting that householder and parcel volumes are taking a serious dive.  So with shrinking revenues and a weary mailing public, management has gone on the attack.  Temporary employees have all been sent home, part timers are reduced to their minimum scheduled hours and there is a complete ban on all overtime.  Clearly they are trying to control all costs as they hemorrhage millions of dollars a day.

The Union has no intention of walking away from the bargaining table at this point and the employer would lose any credibility they might have left with the public if they broke off talks.  We continue to explore solutions to the real problems facing postal workers.  The employer has rejected cost saving measures proposed by the Union, such as using the $32 million CTI money to help resolve the pension issue and spreading pay increments over a longer period for some regular workers as a couple of examples.

Although it is difficult to be in the workplace with such a provocative and childish employer at the moment, postal workers must remain calm and not allow the employer to take control of the agenda.  The employer clearly wants the National Union to declare a nation wide strike so that the Harper government would have a reason to intervene.  With a majority government, Harper would no doubt impose back to work legislation and force massive rollbacks into our contract.  Without the national strike, there is little need for the government to get involved and that is what the employer is so pissed about.  For the time being, its worth it to watch the employer suffer and keep our members on their payroll.

While we are back at work we need to keep up our involvement in the struggle. Our role on the workfloor needs to create continual pressure on the employer to get serious at the table and show  solid support for our negotiators.  Workers can stay informed by checking the local web site [cupwwpg.ca], the National web site [www.cupw.ca] and by signing up for E-Digest on the National website.

Should Winnipeg be called back into the strike, the picket captains will be contacting you.

Solidarity,

Winnipeg Local Executive Officers

NEXT UP...................

EDMONTON AND CALGARY ARE THE NEXT CITIES TO PARTICIPATE IN THE ROLLING STRIKE.

ATTENTION ALL WINNIPEG LOCAL

Members of the Public Service Alliance of Canada (PSAC) will be holding a conference here in Winnipeg this Friday.  PSAC members have also been on the receiving end of the attacks of Canada Post in their drive for contract roll-backs and elimination of decent jobs and services.

PSAC and CUPW will be holding a rally at noon this Friday to show Canada Post our determination to fight for quality public services in our communities and respect for the workers that deserve a fair share of all that their labour creates.

This is a prime opportunity for Winnipeg postal workers to continue to show our support for our negotiating committee and those members that are on Strike elsewhere in the country in our quest for a fair collective agreement.

We are asking all members that are not on duty to come to the rally.  If you work in the downtown depots, this is a great way to spend your lunch break – giving the boss a message.

Where:            266 Graham Avenue
When:             Friday, June 10th at Noon

Please share this message with your co­-workers in the workplace.

Solidarity,
Winnipeg Local Executive Officers

PSAC-CUPW SOLIDARITY RALLY

Members of the Public Service Alliance of Canada (PSAC) will be holding a conference here in Winnipeg this Friday.  PSAC members have also been on the receiving end of the attacks of Canada Post in their drive for contract roll-backs and the elimination of decent jobs and services.

PSAC and CUPW will be holding a rally this Friday to show Canada Post our determination to fight for quality public services in our communities and respect for the workers that deserve a fair share of all that our labour creates.

This is a prime opportunity for Winnipeg postal workers to continue to show our support for our negotiating committee and those members that are on Strike elsewhere in the country in our quest for a fair collective agreement.

We are asking all members that are not on duty to come to the rally.  If you work in the downtown depots, this is a great way to spend your lunch break – giving the boss a message.

Where:            266 Graham Avenue

When:             Friday, June 10th at Noon

Please share this message with your co­-workers in the workplace.

Solidarity,

Winnipeg Local Executive Officers

This is terrible behaviour from the Corporation

Canada Post Corporation has decided to leave mail undelivered in Halifax and Dartmouth today (Monday) despite having extra workers available to deliver the mail, states the President of the Canadian Union of Postal Workers (CUPW) in the city.
"Local management claims it's a cost-saving measure." stated Trevor Beckerson, President of the CUPW Nova Local. "This is a public service, mandated by law to deliver mail. This is what they exist for, and it's unacceptable to withhold mail from the public for the sake of a few dollars."
The routes not covered in Halifax are mainly in Spryfield, Fairview, and the north end of the peninsula. In Dartmouth, areas near Sullivan's Pond are being undelivered, and the Mill Cove
area in Bedford.
Making this worse, says Beckerson, Canada Post announced today that they are no longer utilizing call-in temporary workers, even though mail is being left behind. There are approximately 50 temporary letter-carriers, who are meant to cover absences or unusually high volumes. There are also extra relief workers who are not being given this work, and are sitting idle at the post offices.
"This is terrible behaviour from the Corporation. The CUPW has many bargaining demands to improve service to the public, meanwhile the employer is leaving our mail sitting in the depots for no reason. The union is here and ready to work, and it's disgraceful to punish the public because we refuse to accept their concessions in bargaining."