Good morning.
My name is Sylvain Lapointe, and I am a member of the national executive committee of the Canadian Union of Postal Workers. I was also chief negotiator in the last bargaining round that has just been completed. We are now preparing to go and see our members in order to ratify the two collective agreements, for the urban unit and the rural unit.
I would like to take a closer look at various topics but will limit myself to the question of Canada Post's finances. I believe there are important things that you should know about in connection with what was negotiated in the last bargaining round.
Canada Post offers various product lines, the three main ones of which are: Lettermail, parcels and Admail, which is unaddressed mail.
To be clear, letter mail volumes are declining at a steady rate of 4% to 5%. We do not know whether they will stabilize—they probably will—but we know they will not increase.
With regard to growth, that therefore leaves the main sectors: parcels, admail, and other services, including financial and banking services.
I will focus on parcels and admail since they were the focus of major discussions during the last bargaining round. It is unfortunate that the review committee did not have these data in hand before submitting the report to you. The report would probably have been much more optimistic than it currently is.
We have two main demands with respect to parcels. The first is that we address parcels and plan measures for delivering them in the mornings, in the evenings, and on weekends. Our second demand concerns admail—its weight and dimensions—so that we can increase market share.
In the case of parcels, Canada Post wanted to be able to use a temporary part-time workforce to deliver on weekends, in the evenings, and in the mornings. The union said yes. The union said that, if Canada Post wanted growth, it would be there and part of that effort. It should be noted that the parcels Canada Post currently delivers contain two-thirds of the products ordered online across the country. The measure we negotiated will enable it to grow more.
As for admail, this is a market in which Canada Post holds a very small share. Our demand was that the corporation go after larger and heavier mailings in addition to reviewing the compensation method for that type of mailing. We accepted this second growth model for Canada Post.
We are satisfied that these changes will enable Canada Post to enjoy significant growth in parcels and admail.
Unfortunately, the task force report is based on Canada Post's data and on a study by the Conference Board of Canada that was commissioned and paid for, we would note, by Canada Post. The important thing is to compare the data that were reported at the time concerning Canada Post's future with its actual financial position.
In 2014, Canada Post anticipated an operating loss of $256 million. In fact, it made a profit of $299 million. The corporation made an error of more than $550 million, which is not a small amount. It was a major error. However, the Conference Board and Canada Post data were incorrectly used as a basis for making cuts to postal services and the decision to install the community mailboxes. No reason was given to justify moving in that direction. Growth is the key for Canada Post.
This year, the task force anticipates an operating loss of $63 million. The reality is that it will probably be an even more profitable year for Canada Post. The first two quarters of the year were the best since 2010, when Canada Post began publishing its quarterly reports.
On behalf of the men and women who work at Canada Post, we ask that you carefully examine the statistics on the budget estimates and consider the corporation's actual financial position. Bear in mind one thing: service cuts do not result in revenue, do not create jobs, and do not keep decent jobs in Canada, that is to say jobs for the middle class. However, new services can afford you that opportunity.
Thank you.