Evidence of meeting #125 for Government Operations and Estimates in the 42nd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was terms.
A recording is available from Parliament.
NDP
Brian Masse NDP Windsor West, ON
Will that report be made public, though? Canada Post undertook a study on that. We're still waiting for it to be released. Given your background, I'm wondering what privacy barriers there are to that.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I do know that the committee did see the report in its entirety without any exclusions.
I've asked for that report to be looked at again to have the privacy considerations rescrutinized. It's important for us, obviously, to uphold the privacy side of legislation and to ensure that any commercially competitive information is protected as relevant. I have asked for new advice about the content of the report and whether or not those considerations remain.
I do think it's really important in all of these conversations to be open and transparent. To the extent to which we can all be sharing the same information, it's a benefit to everyone. Personally, I would like to focus on new conversations about enhanced services, additional services that are right for, as you say, the digital age. Recognizing that we do provide some financial services, I think it's important to be having a new conversation going forward.
NDP
Brian Masse NDP Windsor West, ON
That's excellent. I'm glad to hear that the review is going to come forward, because I still think that that postal banking could be an asset, and not just rurally. I can give the example of ridings like mine, where we have payday lenders all over the map, including virtually across the street from Canada Post. There's a series of issues related to that.
At any rate, as long as that door isn't closed.... On the study, though, I know that you talked about transparency as one of your principles. That could be helpful in figuring out whether that's even a partial service.
With regard to complaints and harassment in the workplace, can you maybe give us a little more on that? I think respect is one of those principal elements. Despite the challenges at Canada Post that we've had in the last number of years in the working environment that was thrust upon them, I think we have a really good opportunity to move forward. I think the public has spoken about what they want, and they want their Canada Post.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
It's a great question. The minister and I have spoken as well about issues around harassment and bullying being raised around the Canada Post workplace. A respectful workplace is paramount; it's equal to having a safe workplace. In fact, in many cases these two things are linked. It's very important to me to have an open conversation across the workforce about the workplace and what people's experiences are and to have the trust and confidence that, if necessary, steps will be taken to ensure we have a fully respectful workplace. There's no room for harassment and bullying in any workplace, and certainly not at Canada Post.
NDP
Brian Masse NDP Windsor West, ON
Are you cognizant that there has been I think a bit of a culture of harassment to some degree at Canada Post? I've been out on a picket line in previous strikes in the past, going back 10 years to when I was first elected. I know that pictures were taken and management was coming out at different points, which was not very conducive both to a legal negotiation process and to rights. Are you aware that there probably is a culture issue that needs to be looked at with regard to Canada Post?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
To be candid, I haven't been at Canada Post long enough—I've been here only a couple of months—to be able to give you my opinion about today's culture.
What I do know is that it's important to have a culture. There's always room for improvement. It's important to be having an open conversation about what people's experiences are and to respond to that conversation and make it one that all employees have trust in, and I fully expect to be part of those conversations going forward.
Liberal
Liberal
Alexandra Mendes Liberal Brossard—Saint-Lambert, QC
Congratulations, Ms. McDonald, on your appointment. I'm very directly interested by all that happens at Canada Post, and I've been visiting the depots in my constituency.
To follow up on what you were saying about the changes that have been brought about and about capturing new markets for Canada Post, I think we can commend the employers, the workers, and the management for seizing that moment when e-commerce became so obviously the future. They adapted, so it proves that even if they are a unionized workforce they can adapt very quickly and capture these opportunities. I believe that they deserve our appreciation and recognition for doing it.
I know that you have quite a few challenges in front of you to bring this forward, but in regard to talking about management-worker relationships, I would say that, generally speaking, in my visits there was a reasonably good relationship between the workers and the management. Some employees feel that there are instances of harassment and bullying that are not dealt with, not with the seriousness that they believe those issues deserve. It has less to do with sexual harassment or bullying and more to do with performance, such as how you perform your route.
Do you have any ideas? Have you heard about these complaints? Are you looking at ways for the employers to address them that will make it better for the employees?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I appreciate your insights. Again, I have been at Canada Post for only a few months, so I can't tell you that I have identified a full program in terms of harassment and bullying, other than to say that I have asked for and have been reviewing information about the workplace and workers' concerns, employees' concerns, in the workplace.
From my perspective, the most important thing is to have new, open conversations about the workplace, and again, conversations that are trusted by employees to be meaningful, and for us to identify areas for improvement. Every workplace has areas for improvement, so my objective is to learn, to understand more deeply what the culture specifically is at Canada Post as well, and to ensure that we find those opportunities for improvement.
Liberal
Alexandra Mendes Liberal Brossard—Saint-Lambert, QC
I believe that improving those will also go with the improvement of the business opportunities that the employees, in and of themselves, would participate in.
I know that we've talked a bit about the avenues for adding to what Canada Post already offers the Canadian population, and I again have to commend Canada Post for accepting to change the way we go back to home delivery. I've had very clear examples of constituents, especially 65-year-olds and over, who have asked to return to home delivery and were very quickly given the service. Obviously, they're only getting it once a week, but they got it, and they were very pleased about it. Again, I offer my congratulations on listening to that concern.
I know that we can't discuss for commercial or industry reasons of secrecy all the opportunities that are open to Canada Post, but have you started looking at what those avenues would be?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes, absolutely, and I share your view that Canada Post successfully captured its share of the parcel business. I don't believe it's the case that, as Canadians began to shift in the way they have toward online shopping, this business was naturally just going to fall into Canada Post's lap. I think a lot of credit goes to the corporation for building a strategy that has resulted in its being Canada's number one parcel business. It's going to be important to be constantly evaluating the elements of those strategies as the world continues to shift. It's never going to be static. We're in a very different place today than we were five or 10 years ago, and I know that we'll be saying the same thing five or 10 years from now.
There is a full strategy development and evaluation under way within Canada Post—it's not just upon my arrival—about how the marketplace continues to change. Consumers' expectations continue to change with every experience that individuals have with anyone at a business, whether it's a bank, a retail outlet, or a utility. That changes the bar in terms of what people hope for in their interactions with anyone, including Canada Post. It's a shifting landscape. From what I've seen to date, I believe that if we continue the strategy work that Canada Post has done and continue to be as thoughtful as we have been in the past, we'll continue to be successful into the future.
It's not without its threats and risks. Like any business landscape, there are cliffs that could occur, both in the decline of letter mail, but also, as another member brought up, in the unevenness of the size for Canada Post customers in terms of the parcel business. We have to be very smart in terms of what their needs are and how to ensure that we can figure out the advantages for us in terms of using our systems to successfully meet their needs but also to build our nationwide presence for serving customers.
Liberal
Alexandra Mendes Liberal Brossard—Saint-Lambert, QC
Yes, absolutely, and to retain those clients, that's a big challenge.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes.
Liberal
The Vice-Chair Liberal Yasmin Ratansi
For the next five-minute round, we're going to Mr. Kelly—Pat Kelly, not Kelly McCauley.
Why don't you just keep different names...?
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
I may not need a full five minutes. I have just a couple of questions.
One thing I didn't hear you address in your remarks, which goes back to one of Mr. McCauley's questions about the details of both the committee's report and the dissenting report, is the issue of the pension deficit. I'd like you to comment on this. Maybe you could tell the committee.... I'm not sure if your mandate letter, which you've referred to a few times, is a public document or something that you want to share specifically, but what is your mandate with respect to the pension deficit? It's a pretty big issue for the corporation. I'm interested in hearing your thoughts on it.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes, thank you. You're right. I hadn't mentioned it up to this point. The pension solvency issue is a specific and very big input into our financial sustainability into the future.
The minister's mandate letter is indeed public. It factors in the pension issue with respect to finding a new path forward. It's part of the business plan that Canada Post needs to figure out in the years ahead. Certainly, we'll get a tiny bit of relief as interest rates start to change, but that won't solve the issue. It is certainly a challenge to figure out for the future.
I don't have the answer for you here today, but as you very correctly identify, it's a big part of the financial picture for Canada Post to solve as part of its plan forward.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Did you have a particular vision or plan for this issue as you took on the job? When you were applying for this position, I'm sure you contemplated what some of the challenges ahead might be. Was this a major factor or issue in the process of your being selected as the new chair?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Yes, I didn't come into the position having proposed the solution to solve the pension solvency issue, but it's absolutely part of my remit. It's part of my challenge to figure out how to ensure we have a financial plan forward, and part of that is going to be the pension.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
More broadly, I'm not sure if this is a question or just a comment, but I wasn't part of this committee when it examined Canada Post, so I'm not nearly as familiar with the issues as some of the other members may be. I'm really struck by the eight out of 10 unfulfilled or non-reappointed board members and a vacancy. I mean, this is certainly not a question for you, but it may be one for the government in terms of getting on with it and ensuring the positions are filled, so that there's actual direction and people know who is there to be in positions of responsibility for an important crown corporation. It seemed quite surprising to me.
I'm also a little unsure—again, I wasn't part of the study—about even the governance model. You've talked about a career interest in governance. The CEO is not a board decision but an order in council. At present for this board, where maybe eight out of nine people are going to change, do you have any concerns about the governance model at the board and at the executive level for Canada Post?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
On the governance model, no, I don't have any concerns. There is a skills-based board currently in place. If any of those board appointments change, I am quite confident, based on the process I've been exposed to, that it will continue to be a skills-based board going forward. As I say, I expect in the very near term a new CEO to come into the organization, so with regard to the model, no, I don't have any concerns.
Liberal
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
Thank you, Madam Chair. I want to talk about the pension.
What's the deficit in the pension now?