Canada Post makes $119 million in profits in 2006, but to what end?

Canada Post’s annual report for 2006 shows record volumes and $119 million in net income from the post office and its companies. It is the post office’s 12^th consecutive year of profit and its 25^th year of providing universal, public postal service.

 

Annual report highlights

A few highlights from the annual report follow.

Canada Post:

• Made $119 million in net (after tax) profit from the post office and its companies. Canada Post provided about 60 per cent of profits while Purolator provided about 40 per cent.
• Paid $44 million in taxes.
• Paid $80 million in dividends.
• Increased the amount of mail it processed and delivered.

The Canada Post part of Canada Post’s group of companies had record volumes with 11.4 billion  pieces of mail (11 billion in 2005). Addressed volumes went up by 1.4 per cent. 

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

 

The myth of modest profits

Canada Post President Moya Greene’s letter to employees titled Looking Back on a Great Year said that “we need to remember that profits are modest…” But is Canada Post really making modest profits?

While the law does not require that the corporation make a commercial rate of profit, the government has asked our public post office to provide a commercial rate of return of 11 per cent. Canada Post provided 15 per cent in 2005 and 8.4 per cent in 2006.

Canada Post’s profits are not modest.

 

Profits for what?

Greene’s letter to employees also claimed that the corporation needs to make even greater profits so that it is able “to reinvest in employees, equipment, vehicles and facilities.” Reinvesting sounds good. But what is the corporation’s goal when reinvesting? Does it focus on reinvesting in public services and workers?  Not really.

Greene has repeatedly stated that Canada Post is a commercial enterprise with a business mandate.  As a result, it focuses on its 200 major customers and profit-making rather than postal workers, the public and providing a public service.

CUPW wants Canada Post to start acting like the public institution it is, and we are not alone.

Over 500 municipalities - more than half from Quebec – have asked the federal government to ensure that Canada Post acts like a public service, not a commercial enterprise.  All these municipalities passed a resolution which asks the government to change the financial and policy framework it uses for Canada Post so that the corporation does not have to provide commercial profits and dividends. The resolution also asks the feds to instruct the corporation to use more profits on public postal services, including maintaining and expanding home mail delivery in rural and urban areas.

You can help put the public back into postal service by getting your municipality, labour council, and other groups to pass a similar resolution. For further information, talk to your local or go to the Take Action section of our website:  http://www.publicpostoffice.ca