CUPW claims Canada Post’s 3Q results are “highly misleading”

CUPW claims Canada Post’s 3Q results are “highly misleading”

The Canadian Union of Postal Workers (CUPW) has claimed that Canada Post’s statement about its third quarter results was “highly misleading, continuing its record of downplaying financial success in order to impose unnecessary cost-cutting measures”. On Friday, Canada Post issued a press release, stating that its core postal segment had made a $13m loss before tax in Q3.

However, the CUPW has issued its own statement on the results, in which Mike Palecek, the union’s National President, was quoted as saying: “Looking at the report, for the first three quarters, we see an overall profit of almost $30m ($28m). Once again, in 2015, Canada Post is on track to surpass its projections.”

The CUPW statement continued: “The Canada Post news release headline emphasized the $13m loss for the Canada Post segment. Only much lower down in the release does it mention that the Canada Post Group of Companies reported a profit before tax of $10m for the third quarter and $28m for the first three-quarters of 2015.”

(The Canada Post segment is the postal division of Canada Post. The Canada Post group also includes the subsidiaries Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc.)

The CUPW then went on to say why it believes that focusing on Q3 results can be unrepresentative. “The post office is a seasonal business, depending heavily on holiday sales for its success,” claimed the CUPW. “The union cautions Canadians not to be misled by third-quarter results, which are normally lower. In 2014, for example, the fourth quarter generated $185m in profit, $150m more than the third quarter profit.

Palecek added: “There is every reason to expect that the Canada Post Group of Companies and the Canada Post segment will both see a much greater overall profit this year once the busy holiday season is factored into its last quarter.”

One of the “cost-cutting measures” to which the CUPW statement referred is the ongoing switch-over from door-to-door mail deliveries to the adoption of community mailboxes (CMBs).

As previously reported, Canada Post has temporarily suspended the roll-out of the CMB change-over after the Liberal Party’s victory in the national elections. The Liberal Party has pledged to maintain door-to-door deliveries. Canada Post, however, has said that it has to introduce the CMB model in order to cope with the steady decline in mail volumes which – it claims – make a door-to-door service economically unviable.

 

 

 

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