Union hits out at Canadian government’s postal privatisation interest
Union members in Canada have criticised the government for considering the possibility of privatising Canada Post. The Canadian Union of Postal Workers said a document obtained under the Freedom of Information Act, and labeled “secret”, proved that the Prime Minister Stephen Harper commissioned confidential research into the potential of postal privatisation.
A memo detailing the research was dated September 2013, the month ahead of Royal Mail’s privatisation in the UK, which was featured in the report.
It also came two months before Canada Post itself announced a major cutback programme that is to include eliminating doorstep delivery to cut operating costs.
The Canadian Union of Postal Workers suggested that the postal cutback programme was linked to the possibility of privatisation.
“By letting Canada Post eliminate door-to-door delivery, the federal government is making Canada Post more attractive to private sector investors by cutting the cost of operating the post office,” said union president Denis Lemelin.
Royal Mail
The union cited the controversy surrounding Royal Mail’s initial share price as evidence that privatisation benefited large investors and not postal consumers. It also pointed to Royal Mail’s warnings about competition in the UK postal sector as evidence that privatisation could be a threat to the viability of the universal postal service.
“The only efficiency that privatization achieves is efficiently transferring money from the public treasury to private pockets,” said Lemelin.
“The majority of us will see even more rising prices and worsening services if our public post office is privatised.”
The union is now calling on the Prime Minister to issue a statement confirming that he is not planning to privatise the postal service.
The Canadian government has not officially said it is planning to privatise Canada Post.
The Crown Corporation made a $27m loss in its latest quarter, and expects a $274m loss for the year as a whole as its letter mail volumes decline.
