Canada Post Makes $253 Million in 2003 -- CUPW Says Invest, Don't Mess With Success

Bulletin no.: 2002-2005/197

Canada Post made $253 million net income in 2003 from the post office and its companies, its ninth consecutive year of profit.

As a Crown corporation, Canada Post's success is measured by its ability to serve the public interest, not maximize profit. Canada Post is doing well no matter how you look at it. The standard postage rate is the lowest of the G 7 countries. Service has consistently improved and ranks with the best in the world, thanks to the hard work of 54,000 postal workers. Today, Canada Post has an international reputation as being one of the most efficient postal services in the world.

In spite of this success, one government official has talked of privatizing Crown corporations like Canada Post. Media reports indicate that Treasury Board president Reg Alcock is prepared to consider privatization of Crown corporations as part of his review on public sector accountability.

There is no good reason to mess with Canada Post. As a former minister responsible for Canada Post said just last year, "We have the best post office in the world." And we want to keep it that way. With this in mind, CUPW will contact the federal government and the post office to demand that they invest, not mess with Canada Post.


Annual Report

A few highlights from the annual report follow:

~ Made $253 million in net income from the post office and its companies. $118 million came from a settlement with foreign postal administrations over terminal dues*. $69 million came from a net income tax recovery resulting from the elimination of a termination benefit plan

~ Made $182 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 tax and non-operating expenses.

~ Recovered $69 million in taxes.

~ Paid $18 million in dividends.

~ Plans to pay $63 million in dividends next year

~ Lettermail volumes declined by more than 1% according to the report.

~ There were changes to the way that volumes and revenues are calculated. CUPW will seek additional information on these changes.

Canada Post plans on releasing its five year corporate plan later this month. Your local will receive additional information at this time.


Four Good Investments

Of course, Canada Post could always improve on its success. With this in mind, CUPW is calling on the post office to invest in the public interest by:

Investing in rural service: Public post offices contribute to healthy communities in ways that profit-seeking alternatives that come and go do not, especially in rural communities. Communities need reliable infrastructures like the post office if they are to thrive. The union wants Canada Post to stop closing post offices and start investing more in rural postal service.

Investing in door-to-door delivery: Canada Post could extend door-to-door delivery to many homes at minimal cost. The union wants the corporation to provide home delivery to new multi-unit developments and to new points of call in areas already receiving letter carrier deliver.

Investing in government and financial services: Canada Post could provide people from coast to coast with easy access to a whole variety of government and financial services. The union thinks its time for Canada Post to make better use of a network that is second to none.

Investing in the work force: Wages, holidays and other benefits don't mean much if people are not healthy enough to enjoy them. Every year 20 percent of letter carriers are hurt at work. And one in eight CUPW members is injured. CUPW wants Canada Post to invest in the safety of workers.



* The system for exchanging payments between postal administrations is called Terminal Dues. When you post a letter abroad, you buy a stamp from your local post office but your postal administration has to give some of your money to the postal administration delivering your letter.