Government Operations Committee on April 8th, 2024

[The Chair, Conservative, Kelly McCauley]

Thank you, Mr. Brisson.

Next we have Mrs. Block, for five minutes, please.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much.

You mentioned a long-term strategy and growth plans for Canada Post. Am I correct in stating that this would require Canada Post to submit a strategic plan to the Government of Canada for approval?

[Alexandre Brisson]

We definitely do have a long-term strategy. We need a strategy, because the competition landscape has changed greatly. That's why we have this transformation plan.

If you refer to the actual corporate plan, we are operating under an approved corporate plan. We actually submitted this year's plan. We're currently in discussions with the government to move that plan forward.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

When was the last time Canada Post submitted a strategic plan that was approved by the government and was allowed to be implemented?

[Alexandre Brisson]

That's a good question. I don't have the exact year. I definitely know that we're submitting a plan every year. That plan is the basis for discussions with the government, and we move from that. I also know we're still within the limits and boundaries of the last plan that was approved. I do not recall the exact date, but that's certainly something we can get for the committee.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

What we're talking about is the annual plan that the board submits to the Government of Canada. Is that correct?

[Alexandre Brisson]

The plan, as I know it, is the corporate plan submitted to the government every year.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Are you aware of any strategic plans, corporate plans, that have been submitted to the government that still have not been approved or rejected? In other words, is Canada Post sort of being left in limbo because its plans are not being approved or rejected by the Government of Canada?

[Alexandre Brisson]

I'm not part of the building of the plan directly. I know the plan was submitted and I know we're having direct discussions, but that's the extent to which I'm involved.

I can get you information on that.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Given your role in service delivery and that not having a plan approved might have an impact on your ability to adjust the service that is being provided to Canadians, can you tell us if you've experienced any operational losses as a result of plans not being approved or rejected?

[Alexandre Brisson]

What we see is from the competition. You're talking about the corporate plan.

What I see from an operations standpoint is that we now operate in a market that has heavy competition. For every parcel we move, we actually have to go for it. We have to win it. That ability to compete is what our plan is about.

I think we all see our competition showing flexible delivery by delivering later in the day, over the weekends and over holidays. There's a tremendous amount of competition, and it pushes us to transform the way we serve Canadians. We would say expectations have changed.

That's why we talk about a transformation plan. It's because expectations have changed. We're a machine that was built for letter mail delivery; we're now in the middle of a big parcel market, and we have to change.

That's what's at the heart of what I see from an operations standpoint and why we need to transform.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Are you finding it difficult to be nimble enough in your transformational planning, given that you have to submit a plan to the Government of Canada and it may or may not approve or reject it, leaving Canada Post in a position where it can't make change?

[Alexandre Brisson]

I think it's more a factor of the size of our company. We're a big company. We have a great history behind us, but the amount of change it takes to reorient the company is significant.

A lot of that is actually on the table with our unions this year, because it's a year of labour negotiations. All this flexibility we need on the transportation side is at the heart of the transformation, and it's being reviewed and discussed as we speak.

That's very important to Canada Post going forward.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you.

[The Chair, Conservative, Kelly McCauley]

You have 30 seconds.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I think I'll leave it there. Thank you very much.

[The Chair, Conservative, Kelly McCauley]

Thank you.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

I'm sorry. I have a colleague who's asked for my last 30 seconds, Chair.

[The Chair, Conservative, Kelly McCauley]

You're at 15 seconds now, so thanks.

Mr. Sousa, go ahead, please.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Thank you, Mr. Chair. Thank you to the witnesses for being here.

Obviously, Canada Post's recurring financial losses are concerning in the sense that the losses are almost unsustainable, given that the net liquidity position is depleting.

I get it. We have a lot of challenges before us in regard to diminishing volumes of core mail, increasing demand for e-commerce parcels, and competitors using the low-cost gig economy and contract labour. Certainly compensation restrictions pose conflicts for Canada Post. There are a number of things you're doing, and I appreciate some of those transformations that are ongoing.

One of them is developing a long-term plan to optimize the real estate portfolio to enable us to lower operating costs. This includes identifying office buildings for immediate and potential disposal. I certainly recall one that was recently done at Service Canada in Belleville. It converted property to provide 38 new homes for indigenous people, women and children. It was a great opportunity to utilize some office space that was vacant and underutilized.

Do you feel that the rural moratorium as it currently stands is preventing Canada Post from optimizing the corporation's real property holdings in both rural and non-rural areas? Does the moratorium prevent that right now?

[Alexandre Brisson]

I think that's the question. Certainly the moratorium freezes the rural world, from that perspective.

We have properties across Canada in so many different ways—big, small and medium. We have teams constantly going through this, trying to identify opportunities to monetize and/or convert and support some for the housing crisis, certainly. That's always the case. That's always live.

We're in the logistics business. Occupying the space, the quality of our network is very important in our ability to serve Canadians. For us, real estate is a prime concern.

As you know, though, those opportunities exist. They're sometimes few and far between, but we're certainly doing our best to see what we can do in that space while considering our need for expansion in and around the major centres.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Yes, I appreciate that. There's obviously a disparity between certain communities. Certainly in the urban centres, a lot of air rights would be available to certain locations of Canada Post versus some others that may not have that benefit.

Have any been done thus far?

[Alexandre Brisson]

I cannot answer the question, so I'll take that one back and ask the team to provide you with an answer. I cannot give you an example.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Fair enough.

In 2016, the committee tabled the report entitled “The Way Forward for Canada Post”. It has 45 recommendations in it to improve the financial viability of the company and provide service to Canadians. One of the recommendations was to undertake a demographic analysis to ensure that rural areas are truly protected and reflected in the moratorium on the closure of rural post offices.

Was that demographic analysis done? I'm trying to understand if those postal codes that were protected outside of rural Canada.... Can you explain how that was done, or if it was done?

[Alexandre Brisson]

Can I turn to my colleague Michael?