Canadian Magazine Industry News
19 May 2011, TORONTO
Big players join Magazines Canada in fight against postal strike
The head of a major magazine organization said other big players who rely on Canada Post are strengthening the battle against a looming postal strike that would halt delivery.
Canada Post has put its final offer on the table for the Canadian Union of Postal Workers (CUPW) with a strike possible as early as May 25. Most mail delivery, including subscription magazines, would halt in the event of a stoppage.
Mark Jamison, CEO of Magazines Canada, on May 18 said the group is "communicating with the parties that are most relevant to the discussion in government."
But Magazines Canada is not alone in the effort, he stressed. "Look at all the direct marketing packages; it has a potential to have a very major impact on the economy at large," he said. "We are a relatively small player in the Canada Post stream ... and that's not bad when you're in the stream with other large postal-dependent businesses that are saying the same thing to Canada Post and its employees that we are."
The National Association of Major Mail Users (NAMMU) issued a statement May 18 on the postal situation. "This is a disaster in the making for the corporation, its employees, and the mail industry who rely on Canada Post for efficient, affordable, reliable service," said Kathleen Rowe, NAMMU president.
The Canadian Federation of Independent Business (CFIB) has also weighed in, with an open letter from its president and CEO, Catherine Swift, to Deepak Chopra, president and CEO of Canada Post. "Our members are growing more and more concerned with the growing cost of public sector pensions in general and the sustainability of Canada Post's current plan," reads the letter, which also notes a proposed 4.6 per cent rate increase in January 2012. "This will only further impact (small and medium-sized enterprises) and push even more businesses to look for alternatives to the postal system."
Canada Post itself has outlined the possible impact in the event of a stoppage. "Our goal remains to reach a negotiated settlement," noted Jacques Cote, COO of Canada Post, on May 18. "Nobody will win if there's a strike. The company will lose customers and revenue, employees will lose their pay, and we will not be any closer to reaching a new collective agreement ... at the same time, our competitors will take business away from us that we may not get back."
Jamison didn't elaborate about options being discussed by members to get magazines to customers in the event of a strike, but he noted increasing newsstand presence is not a viable solution. "Newsstand is a matter of draws, and of course draws are determined by the consumer side.... what you're trying to do is satisfy a contract with a reader. So the newsstand is not really an alternative."
Jamison added, "all indications are that if (Canada Post and the union) can't achieve something in the next few days there will be an interruption.
"However it turns out, we hope it's a short-lived disruption, if it indeed happens, because they are still negotiating and we wish them well ... there's still some optimism in finding a way through this. Nobody's throwing up their hands."
Canada Post has put its final offer on the table for the Canadian Union of Postal Workers (CUPW) with a strike possible as early as May 25. Most mail delivery, including subscription magazines, would halt in the event of a stoppage.
Mark Jamison, CEO of Magazines Canada, on May 18 said the group is "communicating with the parties that are most relevant to the discussion in government."
But Magazines Canada is not alone in the effort, he stressed. "Look at all the direct marketing packages; it has a potential to have a very major impact on the economy at large," he said. "We are a relatively small player in the Canada Post stream ... and that's not bad when you're in the stream with other large postal-dependent businesses that are saying the same thing to Canada Post and its employees that we are."
The National Association of Major Mail Users (NAMMU) issued a statement May 18 on the postal situation. "This is a disaster in the making for the corporation, its employees, and the mail industry who rely on Canada Post for efficient, affordable, reliable service," said Kathleen Rowe, NAMMU president.
The Canadian Federation of Independent Business (CFIB) has also weighed in, with an open letter from its president and CEO, Catherine Swift, to Deepak Chopra, president and CEO of Canada Post. "Our members are growing more and more concerned with the growing cost of public sector pensions in general and the sustainability of Canada Post's current plan," reads the letter, which also notes a proposed 4.6 per cent rate increase in January 2012. "This will only further impact (small and medium-sized enterprises) and push even more businesses to look for alternatives to the postal system."
Canada Post itself has outlined the possible impact in the event of a stoppage. "Our goal remains to reach a negotiated settlement," noted Jacques Cote, COO of Canada Post, on May 18. "Nobody will win if there's a strike. The company will lose customers and revenue, employees will lose their pay, and we will not be any closer to reaching a new collective agreement ... at the same time, our competitors will take business away from us that we may not get back."
Jamison didn't elaborate about options being discussed by members to get magazines to customers in the event of a strike, but he noted increasing newsstand presence is not a viable solution. "Newsstand is a matter of draws, and of course draws are determined by the consumer side.... what you're trying to do is satisfy a contract with a reader. So the newsstand is not really an alternative."
Jamison added, "all indications are that if (Canada Post and the union) can't achieve something in the next few days there will be an interruption.
"However it turns out, we hope it's a short-lived disruption, if it indeed happens, because they are still negotiating and we wish them well ... there's still some optimism in finding a way through this. Nobody's throwing up their hands."
— Jeff Hayward
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Why is it that, when a labour dispute is imminent, everyone feels that the best thing to do is to race to the bottom? Everyone wants to take stuff away from the employees - including things that the employer had already AGREED - IN WRITING - to give them after both sides negotiated in good faith?
Pension plans, in both the public and private sectors, are the subject of negotiation between the employer and the employees. Both sides sign the agreement knowing full well the obligations and responsibilities. It's naive, irresponsible and just plain WRONG for employers to then claim that somehow those pesky employees are holding a gun to the company's head.
And rather than leaping on the bandwagon and blaming the employees for the employer's performance, maybe groups like NAMMU should be talking to *both* sides in the dispute, and offering sensible advice and solutions, rather than continuing to beat up on the people who (let's not forget) actually do the work.
If you can, find the cpc internal documents on those reasons you give for NOT delivering the mail...those were manager decisions, for the few whose walkways did actualy cause accidents. IF an employee does not follow those directives, it's suspensions...or worst.
Let's see if you can do it for 1 week, and during that 1 week, 2 days of forced overtime, on top of the overtime you will be doing, and not getting paid for it.
You are more than welcome to walk the 15 miles in my shoes.
Our main issue is our health and safety, the future of our new employees and members and our sick pay benefits.
Canada Post Corporation is telling us they want to pay people hired after the contract is settled 7 dollars less per hour. Why should a person doing the exact same work that I do make less money?
They are also attacking our pension (sort of, the potential lesser paid employee will play a huge role in the years down the road, a tactic Canada Post is trying to use).
Another big concern is health and safety and the way we will be covered if injured on duty. With the modernization of Canada Post the corporation is implementing longer routes with a two bundle delivery method that will sit in one arm. If injured on duty they want to pay us only 70% of our wage. With the new delivery method it is expected to have injuries while on duty shoot through the roof.
Sick time is also being attacked and will be handled by a private insurance company which has all the right to harass the employees of Canada Post……..
Strikes are not always about money, as in the case here. We set a precedence for all our fellow Canadians, many of the benefits you enjoy have stemmed from CUPW and other unions. IE: maternity leave, statutory holidays and many others. If it wasn’t for unions and regulatory bodies which have been put in place because of unions (Canadian Labour Code) we’d all be making $4 an hour while the people sitting in the board rooms would reap the benefits and profits off of our backs.
Maybe do a little research before jumping to the conclusion of MONEY. We make a decent salary, we know this and are very very grateful, but on the same token, Canada Post has been hugely profitable for the past 16 years and has been putting money back into the tax stream.
May 20, 2011
Dear Ms. Swift:
We were very surprised and disappointed to see your open letter to Canada Post President Deepak Chopra on the possibility of a postal strike. In our opinion, your letter is not in the best interests of CFIB members who are hoping that Canada Post and CUPW arrive at a negotiated settlement.
Your letter supports the corporation�s proposals �for a new wage and pension system for new hires� and �replacing the banking of sick days with a new sick leave program.� It even goes so far as to instruct the corporation to �not shy away from the tough decisions that need to be made to help contain costs.�
We do not understand why the Canadian Federation of Independent Business is encouraging Canada Post to hold fast to bargaining positions, especially in connection with major negotiations issues such as new hires and sick leave.
We think your members would be better served by an organization that encouraged bargaining rather than the kind of intransigence that leads to strikes.
CUPW is doing its utmost to avoid a strike. We want a collective agreement. It may be difficult to get a settlement given the unprecedented number of concessions being demanded by Canada Post, but the union is determined to try. Unfortunately, letters such as yours encourage Canada Post not to try, which will not help our negotiations or your members.
Yours truly,
Denis Lemelin
National President
However, as any investor knows, past performance is no guarantee of future profitability. It is time the union came to their senses with the fact that CPC is a sunset industry relative to letter mail and unless they suddenly become a force in the parcel business, future profits look slim given their high labour costs.
Thus the choice for the union becomes whether to collectively �cut their noses to spite their faces� or to rationally look at the issues. Defined benefit pension plans and �cadillac� sick benefits are very costly even for business that have solid future profit outlooks.
CPC�s current offers for both issues are competetive with top flight benefit plans in both the public and private sectors. It�s not quite the rollbacks that the CUPW would have one believe.
Unless this radical union comes to their senses, there may not be many jobs to return to when the competition picks up CPC�s parcel business left by the strike void.
Samantha has hit the nail on the head and has valid issues, yet she doesn't realize how the service has come to decline. Her new vs old mailman comparison is exactly what we are fighting for here. It is Canada Post's new restructuring that is corroding the service, giving time value for one and only one box per house --this justifies adding 25% more houses to a route. It's not that your new mailperson doesn't want to deliver, but if they did for every house that has more than one they would be into overtime for it. Letter Carriers get questioned about overtime and if found defying the rule of one box per house, they'd be gone. Your Old mailman probably took early retirement due to new pressures from CP, most Carriers who are close are also considering their options this way. The new hires are doing as CP says to protect themselves at the expense of the service quality. How do you see this improving with new hires starting off at lower pay, not having a lunch break, carrying two bundles in one arm? Quality of service is what is at issue here as much as anything else, old mail carriers everywhere are aware of this as much as the possibility for permanent disability from the pressure from Canada Post. The old mailman is loosing pride in their work, and opting for retirement.
Canada Post last summer had a program called the 'summer initiative', which refused to cover vacations and sickness absences. It was in direct contravention of the Canada Post Act, and they did not care. This is not acceptable from a public post office. Expect more of this if CP gets its way, the are following the US model of sequencing mail; the US has been falling deeper into debt for 16 years, and has been sequencing for the same amount of time. CP has even bought their first sequencers from the US.
So Masthead, please do some critical analysis here of the business practices of Canada Post, and how cheapening of labour will effect the quality and timely delivery that you expect from Canada Post. Take a look at their top heavy management structure and their salaries + bonuses and ask where the real cuts should come from.
Thank You