Thank you for the time today.
I'm going to start with the decline in letter volumes. In recent years, Canada Post has been in the media telling Canadians that volumes are dropping. This is being done without full explanation, and it leaves customers believing that Canada Post's whole operation is in decline. CUPW cannot dispute that the letters or cards that individuals send to family and friends are on the decline, replaced by email. However, we can point out that all the other product lines are increasing.
Here in Winnipeg, parcel volumes rose by 30% in 2015, and they are projected to rise by 28% in 2016. There has also been an increase in small packets by 6% to 8% annually, as well as moderate increases in Admail and business mail.
That said, Canada Post evaluates its operation regularly and will conduct volume counts and restructures on individual depots within a city. Locally, the last three depot restructures have increased the number of letter carrier routes, which can only indicate that volumes are on the rise.
With regard to lost revenue, Canada Post continues to focus more on profits than on what its real goal is or should be: to continue providing mail delivery to all Canadians from coast to coast. Canada Post has an opportunity to increase profits by looking at its current operation and ensuring that large-volume mailers are paying their fair share. Some of Canada Post's largest customers are allowed to take their mail to another country, such as the Dominican Republic, place that country's postage on their product, and then return that product to Canada and send it through Canada Post. This is referred to as remailing, and it is a huge source of revenue loss for Canada Post.
Canada Post also discounts postage rates for businesses that are high-volume shippers. These businesses get a 40% to 50% reduced rate from what the rest of Canadians pay. Again, this reduces profits.
Canada Post has focused their business on the popularity of online shopping. A lot of this product comes from Asia, and because of the international postage regulations for third world countries, Canada Post receives little to no revenue for this product. Because of this, major plants across Canada stockpile this product for weeks until they have the resources to work it, causing delays in service.
Finally, the federal government is not charged for mail being sent out, nor are Canadians charged for sending mail to any branch of the federal government. Also, MPs are allowed to send out regular Admail for no cost, which letter carriers deliver at a cost to Canada Post of 2.3 cents per piece.
There are several new initiatives that Canada Post could add to their existing operation that would help it financially. It could supply letter carriers with books of stamps, envelopes, and small packets that could easily be sold at the door. It could have shipping specials for products that fit into a specific size requirement. It could have charging stations for electric vehicles. Door-to-door letter carriers could check in on seniors or people with mobility issues. It could deliver locally produced food. It could offer postal banking. These initiatives and others can be found in the document that I've provided you with today.
In conclusion, with an aging population, Canada Post needs to maintain its door-to-door service and reinstate door-to-door service to those areas already converted to community mailboxes. These community mailboxes have had serious problems with seniors slipping and falling, with thefts, with frozen locks, and with placement in dangerous low-light areas, to name a few.
With Canada Post continuing to be profitable, it has an opportunity to improve on its existing operation by adding services that will not only help financially but also allow them to branch out into new areas, increasing the number of customers using the post office.
Canadians rely on Canada Post to deliver on a daily basis and to maintain the service that customers expect. Businesses of all sizes rely on Canada Post to send their products and to receive payments and goods that keep their businesses going.
Thank you.