Mr. Speaker, it has been quite a day.
I rise today to further question the Liberal government, in particular the minister responsible for Canada Post.
My question to him was as follows: The U.S. postal service handles 40% of the world's mail while its postmaster general Marvin Runyon earns a salary of $205,000 Canadian per year. The Canadian post office handles 3% of the world's mail while its president Georges Clermont just had his contract renegotiated for another two years for $380,000 Canadian per year. As the minister was so willing and capable to quickly settle the services of Georges Clermont, then why does he and Canada Post not show the same consideration toward the Canadian postal workers? His response was for me to get back to my friends within the union to get back to the bargaining table.
I am very honoured for the minister to say that I and the NDP are friends of not only the union workers but all workers throughout Canada. It is just this point that we defend the rights of those workers against scandalous practices of the management of corporations such as Canada Post.
The arrogance displayed by the minister by announcing Georges Clermont's contract during a time when negotiations between management and union are at best a very tense situation is what I would always fight against.
Without consultation this government has directed Canada Post Corporation to ignore its original mandate and to start realizing a return on equity of 11% which would represent profits of around $175 million to $200 million per year. Interestingly enough, a government commissioned report released earlier this year said that with this kind of financial return, Canada Post would be capable of privatization by an initial public offering of its shares in the future if government should decide to pursue this alternative.
I firmly believe that if the government had not interfered in the original bargaining process, and if it had not promised John Gustavson of the Canadian Direct Marketing Association of Canada that in the event of a labour stoppage he would introduce back to work legislation within eight days of a strike, I believe that Canada Post and the Canadian Union of Postal Workers would have reached a collective agreement by now.
Another concern to Canadians is why the government is insisting that the corporation, after making a $120 million last year, has taken an additional $200 million in concessions from the workers.
Everything I have mentioned is going against the Canada Post Corporation Act. It is my opinion that the corporation should make enough profits to finance operations and for the purpose of reinvestment into improving and expanding services like door to door delivery.
Canadians enjoy the second lowest postal rates in the industrial world. An example how Canada Post can make additional revenues needed is as follows. Every penny increase for a stamp realizes $25 million profit to the corporation. If the government reduced the GST on stamps from 7¢ to 2¢ and raised the price of stamps by 5¢ the corporation would realize an additional revenue of another $125 million.
I would call this a win situation. The workers at Canada Post win because they would not have to be sucked into giving any concessions of any kind. The post office wins with additional revenue. The public wins because there would be no additional costs to them in the purchase of stamps.
I trust the government and the Canada Post Corporation will in all honesty sit down with the Canadian Union of Postal Workers and, for once in their lives, bargain in good faith.