News releases

Canada Post President and CEO appeals to CUPW Leadership

Deepak Chopra, President and Chief Executive Officer of Canada Post, is meeting with CUPW President Denis Lemelin today in an attempt to find common ground that would avoid a disruption of mail service. Canada Post remains available 24/7 to meet with CUPW and bring these negotiations to a successful conclusion.

Canadians live in a digital age that is increasingly driven by electronic communications and e-commerce. Online substitution of traditional mail continues to grow. As a result, Canada Post’s core Lettermail business has fallen by more than 17% per address since the beginning of 2006, This is not a trend that will reverse itself.

Despite this ongoing decline in Lettermail volumes Canada Post does not rely on taxpayers’ dollars and is working to ensure that does not change. Canada Post has also been able to keep the price of postage affordable and therefore accessible for the average Canadian. Businesses, small and large, depend heavily on an affordable postal system and cannot afford a steep price increase to pay for additional operating costs.

Canada Post must address labour costs in this round of contract negotiations with CUPW. Wages and benefits account for close to two-thirds of Canada Post’s revenue and the company’s pension liability has reached $14 Billion with a solvency deficit of $3.2 Billion.

With close to 22,000 employees – more than one-third of the company’s workforce – expected to retire within the next 10 years changing the package for future employees allows Canada Post to address operating costs without impacting current employees.

The offer allows Canada Post to protect the wages, benefits and job security of employees without being a burden on the taxpayers. Canada Post is confident we will not have any difficulty hiring future employees as the new compensation package is very competitive.

The proposals put forward by the Canadian Union of Postal Workers (CUPW) would add to Canada Post’s financial burden and hurt the company’s ability to remain financially self-sustaining.