Corporation made $ 71 million in 2002 -- But where does the money go?

Bulletin no.: 2002-2005/89

Canada Post made $ 71 million net income in 2002, $ 43 million more than it predicted it would make in its previous plan. This was the Corporation's eighth consecutive year of profits.

Some would say that Canada Post's profitability makes it a public sector success story. Canada Post President Andre Ouellet does. In a recent issue of the Corporation's magazine Performance, Ouellet said, "We have demonstrated that Canada's postal service can be profitable without privatization. We have set an enviable example that many other industrialized countries should follow."

While CUPW is pleased that management is standing up for public postal service, the union has concerns about the corporation's view of success. Success is not measured by profit-making in the public sector. It is measured by where the money goes. To truly succeed, management needs to re-invest it profits in its work force and services.


Annual report and corporate plan highlights

A few highlights from the annual report and corporate plan follow:

- Made $156 million in income from operations. Income from operations is the amount of money that Canada Post makes from its various operations. Net income is what the Corporation makes after it subtracts items like income taxes and non-operating income (expenses). This year, the annual report did not provide net income figures for Canada Post's various operations (Post Office, Purolator, Logistics, etc.), only a total for all operations ($71 million), or what the report calls The Canada Post Group.

- Plans to make $529 million over the next five years.

- Paid $ 56 million in taxes and had non-operating expenses of $29 million .

- Plans to pay $ 395 million in taxes over the next five years.

- Paid $ 16 million in dividends to the Federal Government.

- Plans to pay $ 143 million in dividends over the next five years.

There is nothing in the Canada Post Corporation Act that says the post office has to pay dividends and income tax to the federal government.


This is the year for our share

In negotiations, CUPW is demanding that the corporation share some of its profits with the public and post office workers. Here are a few key issues and demands:

Health and Safety: Postal workers have one of the highest injury rates in the federal sector. Only longshore workers have a higher injury rate. Every year 20 percent of letter carriers are hurt at work. And one in eight CUPW members is injured. CUPW is demanding contractual obligations that ensure that management places a much higher priority on the safety of workers.

Rural and Suburban Mail Couriers: For many years now, the corporation has exploited the fact that rural and suburban mail couriers have no basic rights by treating and paying them poorly. CUPW is demanding that rural and suburban mail couriers be contracted in and that their wages and working conditions be improved.

Wages: Postal workers wages have not kept pace with inflation over the years. CUPW is demanding a wage increase and an improved Cost of Living Allowance (COLA).

Secure Jobs and Expanded Services: During previous rounds of bargaining, CUPW negotiated creative provisions to expand services and contract in work (See Appendix T and Appendix AA of the CUPW-Canada Post collective agreement) In this round, CUPW has demands to build on this success. Our proposals include: better retail services, contracting in parcel delivery and more door-to-door delivery by letter carriers.

The CUPW negotiating team has presented these demands and others to the employer. Please show support for your negotiators by staying informed and by taking the actions organized by your local.