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.
Conservative
Kelly McCauley Conservative Edmonton West, AB
I think that's all I have. I think a lot will have to wait till we have a new president and a new board, and hopefully we can move forward fast with that. Thanks very much.
Liberal
Liberal
Majid Jowhari Liberal Richmond Hill, ON
Thank you, Madam Chair.
Congratulations, Ms. McDonald, on your appointment.
You mentioned that the 2017 annual plan is not out yet. Am I right?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Our annual report, yes.
Liberal
Majid Jowhari Liberal Richmond Hill, ON
Yes, annual report. Thank you.
I'd like to go back to the 2016 annual report. In that report, four major structural challenges were identified: declining mail volumes; pension solvency deficit, and some discussion has taken place already on that one; labour costs; and, network capacity-building.
However, the recently announced revised action plan does not clearly address these. How do you plan to close the gap between those major structural challenges and the fact that they're not mentioned in this plan? How is this going to be addressed?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
In which report are you saying that those elements are not referred to?
Liberal
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
Okay. I'm not sure that I'm clear on what plan you're referring to; however, let me get to the spirit and the intent of the question.
Absolutely, those are all key challenges for Canada Post. As I say, it's not a static environment. We're currently in labour bargaining with the largest of the unions, CUPW, toward a new collective agreement. We're working hard on that, and I'm looking forward to a successful outcome on that front, which will in part provide new inputs and new analysis in terms of the labour costs of the organization, which is one of the four pillars you referred to.
The pension is certainly a difficult issue in terms of ensuring its continued affordability for the corporation. There is also the network expansion, for example, and other things, which are all part of the inputs for a new plan forward. Canada Post is actively working on maintaining the success of its current business strategy as we articulate a new plan forward. After a new CEO is on board, we absolutely will be addressing all of those components in a new business plan.
Liberal
Majid Jowhari Liberal Richmond Hill, ON
I'm looking at the mandate letter to you. There's a section under “Innovation and Best Practices for Implementing Renewal”. A number of recommendations were made for the new governing board and the new management to follow. Specifically, there are three recommendations: one on alternate day delivery, another on parcel locker and weekend delivery, and a third on improved public services to Canadians, especially in rural and remote areas.
What initiatives have been taken or are planned within the next year, until the plan is fully rolled out? What actions have taken place?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
All of these elements are under active consideration as part of our strategic analysis of what our customers need and how best to utilize the system we have in place. None of those are ideas that we need to start new thinking about; they're all part of the works. They have all been part of the strategic analysis inside Canada Post. Some of them, I'm sure, will be part of—
Liberal
Majid Jowhari Liberal Richmond Hill, ON
For example, has there been any action taken on studying alternate day delivery?
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
For sure. I mean, as I say, there is a very active environment inside Canada Post looking at the strategic options: what our customers need, how our assets are currently being used, and where our investment in network expansion will be put, as well as what that means in terms of downtime in some of our plants and how we may be able to better utilize our entire system. Whether it is alternate day delivery, weekend delivery, or any of the other aspects, these are all always part of the strategic analysis inside Canada Post.
I do imagine that some of these elements, and maybe other ideas as well, will also come up in our discussions toward a new collective agreement, and I look forward to more creative discussion and more ideas about how we can use the system we have and support employees to be successful in continuing to meet the ever-changing needs of our customers.
Liberal
Liberal
NDP
Brian Masse NDP Windsor West, ON
Thank you, Madam Chair. One of the things I want to address is Amazon.
With regard to postal delivery services, Canada Post has carved out a very good strategy by going to markets that might not have been affordable, such as smaller communities, but still doing so because of the principles of Canada Post and an operating philosophy for Canadians that's different from just the bottom line.
The interesting aspect you have is that Amazon is in competition for massive public subsidization, whether it be in the United States or Canada right now, and it is going to be one of your major competitors. Are there any thoughts in terms of what the business plan response is going to be from Canada Post if Amazon receives massive public subsidization?
Clearly, whether it's a facility located in Canada or the United States, there seems to be municipal, provincial or state, and maybe perhaps even, on the U.S. side, federal allocation of dollars to get their operations going for everything from road infrastructure to technology, as well as training dollars. Has there been any thought about that situation? Your competitor is going to receive quite a serious, significant contribution, most likely from the public purse.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I'm sorry. I don't mean to take up more of your time, but would you mind elaborating when you talk about Amazon receiving direct subsidies from the public purse?
NDP
Brian Masse NDP Windsor West, ON
Yes. Right now, in the United States and Canada, their bids are to receive municipal, state level or provincial, or even federal dollars. Your business competitor is going to receive a significant form of equity contribution to advance its competition against you. Has been any thought about that? Maybe it's too early for that, but the reality is that if Amazon decides to set up operations, when it does, it's most likely going to receive a generous contribution from taxpayers somewhere, not from the private sector. You're going to have to compete with that.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I see. You mean in terms of competing with that.
Chair of the Board of Directors and Interim President and Chief Executive Officer, Canada Post Corporation
I wouldn't want to comment or speculate on any decision that any government might make in terms of what you're talking about in regard to subsidization.
