NUPGE concerned postal review will lead to deregulation

The National Union of Public and General Employees (NUPGE) has written Canada Post expressing concern that a “strategic review process” currently under way by the Crown corporation may set the stage for “deregulation of our public postal system.”

“Our first concern is that the review process does not include public input,” NUPGE secretary-treasurer Larry Brown says in a letter to the agency.

“As the public continues to be the owner of Canada Post, public hearings in multiple locations across Canada would be the most appropriate course of action. This is not happening,” Brown writes.

“Our second concern is the impact that deregulating the postal service will have on the quality, universality and environmental impact of postal delivery.”

Brown says the public, small businesses and non-profit organizations all rely on a regulated post office to provide reasonably priced service in all regions of Canada – one of the largest countries in the world.

“A regulated public postal service that has exclusive rights for letter delivery is able to set fair rates that are sufficient to defray the costs incurred by this vast public service,” he argues.

“Canadians expect that any profits obtained by their postal service will be invested in improvements of the service, like post offices, rural delivery and door-to-door delivery. The non-profit aspect is important to Canadians.”

Deregulation downside

Brown argues that deregulation threatens affordable service by opening up mail delivery to profit driven businesses, a development that has led in other countries to fewer jobs, less service and higher rates for both the public and business.

“Postal rates in far smaller countries, like the U.K. and Sweden, have increased at a much greater rate than in Canada after these countries deregulated their service,” he notes.

Brown also says a well regulated service ensures that good environmental practices are followed. “With a competitive model and many companies delivering in the same community, greenhouse gas emissions would be multiplied. … A regulated system is more environmentally friendly.”

He also notes that it is in the national interest to protect the jobs – with good wages and working conditions – that now exist at Canada Post. “A deregulated postal system would destroy jobs and transform good jobs to bad jobs with a profit-driven model where wages and benefits compete with bottom line profits,” he adds.

“The post office is and should remain a publicly-owned enterprise, responsible to the public and to Parliament. Canada needs to focus less on profit making and more on public interest objectives.”