Canada Post and losing money

Send to a friend

Send this article to a friend.

I’m writing in response to the letter to the editor from Ruth Larson dated Feb. 8: “Stop Canada Post’s action plan in its tracks.”

Canada Post has a mandate to fund its operations with revenues from the sale of its products and services, rather than become a burden on taxpayers.

With the increasing use of digital communication and the historic decline of letter mail, Canada Post had begun to post significant financial losses.

If left unchecked, continued losses would have jeopardized its financial self-sufficiency and become a significant burden on taxpayers and customers.

Consultation with thousands of customers over five months aided us in developing the five initiatives in our Action plan that will form the foundation of a new postal system designed to serve busy Canadians and meet their changing needs for postal services. We are proud of our history in connecting Canadians, from community-to-community, enabling commerce and remote trade and feel confident this plan will help us protect the future of our postal service.

Mary Traversy

senior vice-president

(business transformation)

Canada Post

Organizations: Canada Post

  • 1
  • 2
  • 3
  • 4
  • 5

Thanks for voting!

Top of page

Comments

Comments

Recent comments

  • Marty
    February 24, 2014 - 17:55

    Don't know what all the fuss is about. The majority of private citizens have significantly reduced their use of Canada Post, hence their loss of profits. Personally, I choose to receive and pay my bills electronically and haven't mailed a letter since the advent of email. Great save on paper.... Also, I haven't had door-to-door mail delivery since moving out of St. John's 35 years ago and am none the worse for it -The super boxes work fine.

  • Politically Incorrect.
    February 24, 2014 - 14:20

    "Action plan," "busy Canadians," "burden on the taxpayers." Enough of the meaningless buzz-words. (And what the *#$&#^ kind of title is "business transformation?") Canada Post has been bleeding ever since the government decided to sell off its profitable divisions and hang onto the chafe, and make it further unappetizing by making it more expensive and difficult to use, knowing full well that it could use it as an excuse to sell it off to its corporate backers. And key to this is to change the paradigm from its being a service to its being a `business.`

  • david
    February 24, 2014 - 10:39

    ".....rather than become a burden on taxpayers." ......BECOME?! Canada Post already records losses of more than $100 million every 3 months, and its own internal documents project that it will be losing $1 billion a year by 2020. That's no burden...that's just everyday life in Canada.

    • Joe
      February 24, 2014 - 14:06

      So when MC or Visa etc. want to send me a statement they can deliver it to my door at their expense. And let's get rid of Marine Atlantic while were at it.

    • david
      February 24, 2014 - 14:38

      I hope you're drunk. Because there's a chance you'd make more sense tomorrow.

  • melvin simmonds
    February 24, 2014 - 07:50

    so what if canada post keeps raising prices and cutting home delivery. I guess somebody has to pay for those high salaries. Eventually the government will have to get rid of canada post anyway.The tax payers should not have to subsidize any coroperation or company anyway.if they can not make it on their own then close shop.

    • a fed. trend to be soon used against us prov.?
      February 24, 2014 - 08:55

      so what if NL Hydro/Nalcor keeps raising prices and not keeping service reliable. I guess someone has to pay for those high salaries. Eventually the government will have to get rid of Nalcor anyway. The taxpayers should not have to subsidize any coroperation or company anyway.if they can not make it on their own then close shop. WILL NALCOR BE THE NEXT PUBLIC PIG BLED FOR PRIVATE BUTCHERING? Bailing out paper mills & lines for iron mines? Somehow these taxpayers burdens seem to be passing us by as we strip our public core services to then turn around and subsidize those who pretend not to be able to make it in paper and iron? I agree with Melvin, taxpayers should not have to pay for this.

  • melvin simmonds
    February 24, 2014 - 07:49

    so what if canada post keeps raising prices and cutting home delivery. I guess somebody has to pay for those high salaries. Eventually the government will have to get rid of canada post anyway.The tax payers should not have to subsidize any coroperation or company anyway.if they can not make it on their own then close shop.

    • Joe
      February 24, 2014 - 14:00

      Works for Marine Atlantic also.

  • CPC can't even defend this B.S.
    February 24, 2014 - 05:23

    No one can deny that the global trend toward automation and Epost mail is inevitable, as is the electric car. Too bad the public is being similarily bullshitted by GOV'T/CPC as it was by GOV'T/GMC and their bailouts. They want to skim money out of the company via tech & safety spending, and then blame the ultimate victims for their insolvency? The self-fulfilling prophecy encapsulated in the Five Points Action Plan, is no more than a meagre mimic of the federal governments money draining, already debunked, Economic Action Plan aimed at producing skewed consumer confidence. If the long-term strategy of the federal government was not to induce financial conditions aligned with a demand for privatization (as Britain’s Royal Mail recently accomplished with the help of herself), it would never support CanadaPost in implementing such a brash pre-Christmas price increase to 2014, 2nd Quarter letter-mail, and would never embed it within a grandiose scheme to end residential door delivery within five years, would they? What business would, private or public, do this to themselves based on advice from a government-bootlicking Conference Board of Canada report? This is all about getting the public upset, not managing to avoid burdening the taxpayers. Ottawa seems more troubled about how to present a poll-skewed perception of our consumer confidence and purchasing power than enabling families to sustain themselves or allowing small business a stable environment. These Action Plans are really just marketing campaigns, not real business strategies intended to help real Canadians. Instead of fixing anaything, they will likely bring the Corporation into further distress, further immanentizing the necessary defunctness of the residential letter mail service, as per independent, not-for-profit prophecy. They cast the phrase 'taxpayer's burden' around like a magick spell. It is in the skimpy 5 Point plan over a dozen times for sure. Total B.S. form CPC, playing stupid to get out of it's service mandate.