Late last year, Canada Post announced changes for the new year, which included eliminating door-to-door delivery in urban centres across Canada over the next five years, increasing the price of a stamp from 65 cents to $1, and cutting 6,000 to 8,000 jobs in an attempt to return the Corporation to financial stability by 2019.
Late last year, Canada Post announced changes for the new year, which included eliminating door-to-door delivery in urban centres across Canada over the next five years, increasing the price of a stamp from 65 cents to $1, and cutting 6,000 to 8,000 jobs in an attempt to return the Corporation to financial stability by 2019.
"With the increasing use of digital communication and the historic decline of letter mail volumes, Canada Post has begun to post significant financial losses," the corporation said in a news release. "If left unchecked, continued losses would soon jeopardize its financial self-sufficiency and become a significant burden on taxpayers and customers."
Mail volumes in Canada have dropped almost 25 per cent per household in the last five years. Could this be because Canada has a very high postage rate compared to other countries such as the US? These high rates encourage the population to find other methods of distribution or cheaper companies to do the job.
The increase in postage prices will have negative effects on businesses, non-profit organizations and individuals that are struggling to survive in today’s economy. "Massive letter mail price hikes for residential and business consumers is not the way to rescue a failing government entity," said Canadian Federation of Independent Business president Dan Kelly in a statement.
Is he not right?
By increasing prices and decreasing services, Canada Post risks decreasing their mail volume even further, because people will find alternatives – emailing invoices, sending e-cards, paying online rather than mailing a cheque or money order, etc. Is it not better to make a little on a lot, than a lot on a little? Canada Post CEO, Deepak Chopra, said Canada Post must keep up with the digital world in order to survive. But are they not encouraging the digital world by sending fed-up customers their way?
If they are looking to reduce their operating costs, why have they not considered reorganizing their top-heavy management structure? According to a Vancouver Sun report, Deepak Chopra, CEO of Canada Post, draws a salary between $440,900 and $518,600, with a hefty bonus. Apart from Chopra there are 22 presidents and vice-presidents, with the group accounting for $10 million in salaries – not to mention perks and bonuses. Why have their jobs not been cut? There would be less front-line work cuts if they were.
Instead, front-line staff will be cut, boosting inefficiency in the name of greed, and price hikes will make Canada Post uneconomical for many, driving them to competitors. Nice marketing plan!
Allyson Beauregard, Editor
