Canada Post makes $199 million in profits

Canada Post's 2005 annual report says that it delivered more mail to more points of call than ever before.

The report also says that the corporation made $199 million net profit in 2005 from the post office and its companies. It is the corporation’s eleventh consecutive year of profit.

But where will the money go? Will it be invested in service, plants, post offices and the workforce?
CUPW wants to know.

Annual Report Highlights

A few highlights from the annual report follow.

Canada Post:

• Increased the amount of mail it processed and delivered. It had volumes of 11.1 billion pieces. Regular lettermail, addressed admail and parcels all increased. This is the first year volumes exceeded 11 billion pieces.
• Made $199 million in net (after tax) profit
  from the post office and its companies.
• Made $263 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.
• Paid $80 million in taxes.
• Paid $59 million in dividends.

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

Post office is not broke

Oddly enough, Canada Post President Moya Greene used the annual report as an opportunity to suggest that our public post office is in trouble and needs to be more profitable. Greene said “changing customer needs means our current business model is not sustainable and we must continue to innovate as we seek additional sources of revenue to counter losses from the ongoing erosion of Lettermail volumes.” But lettermail volumes increased.
So did profits.
Canada Post is doing well no matter how you look at it. The standard postage rate is among the lowest of 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.

But Canada Post does have a problem

While Canada Post is not broke, it does have problems, which need to be addressed, such as its enormous injury rate, its refusal to extend door-to-door delivery and its decision to close the plant in Quebec City. As well, the corporation has not been transparent or accountable about its plans for plants, post offices and its overall plans for public postal service.

Canada Post is conducting a "network review" and the federal government has conducted a "policy framework review" and it is time both of these documents were released for public discussion. As well, the Conservative government has not clearly said that it intends to continue the Liberal moratorium on rural post office closures. CUPW national office has asked Canada Post and the government for information on the moratorium, the network review, the policy framework review and overall plans for our public post office, but we have not received much information in response to our requests. We work at Canada Post. Canada Post is owned by the public. We all have a right to know what's going on and what’s being planned.

Let Canada Post and the government know what you think by participating in CUPW's campaign Operation Transparency.