Breaking News: Is the "Financial Crisis" at Canada Post Propaganda?
Date: March 15, 2023
Categories: Business, Politics, Canada
SEO Tags: Canada Post, Postal Service, Financial Crisis, Propaganda, Budget Cuts, Union Strikes, Government Subsidies, Privatization, Public Services, Canada Economy
In a shocking twist, experts are questioning the legitimacy of Canada Post’s financial struggles, claiming that the "financial crisis" is nothing more than propaganda to justify drastic budget cuts and potential privatization.
For years, Canada Post has been facing financial woes, with claims of mounting debt and declining revenue. However, a closer look at the numbers reveals a different story. According to a recent report by the Canadian Union of Postal Workers (CUPW), Canada Post’s financial issues are largely a result of government policies and lack of investment in the postal service.
"The idea that Canada Post is ‘losing’ money is a myth," said a CUPW spokesperson. "The reality is that the government has been cutting funding and shifting the burden to the workers and customers. It’s a classic case of misdirection."
Critics point to the fact that Canada Post has received significant government subsidies in recent years, despite claims of financial struggle. In 2020, the government provided Canada Post with a $500 million bailout package, followed by another $150 million in 2022. These subsidies, combined with the postal service’s already robust revenue stream, raise questions about the true financial health of the organization.
Furthermore, experts argue that the financial struggles at Canada Post are being used as a pretext to justify sweeping budget cuts and potential privatization. "The goal is to break the postal service and pave the way for private companies to take over," said a trade union representative. "It’s a classic example of neoliberalism in action."
The controversy surrounding Canada Post’s financial crisis has sparked widespread outrage and concern, with many calling for increased transparency and accountability from the government and postal service. As the debate continues, one thing is clear: the truth behind Canada Post’s financial struggles is far more complex than the simplified narrative presented to the public.
Stay tuned for further updates on this developing story.
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There has been a lot of posts on tiktok/reels talking about how much money Canada Post is losing. Feels like this is a tactic to get the general public against the employees, and it seems to be working, based on the comments…
It’s just corporate propaganda, the company is fudging its numbers because it’s counting all the new trucks, plants, scanners etc. that they have bought as loses which puts them in the red
The company is definitely under fire… Amazon (and Chinese sellers) have effectively destroyed people’s brains about what shipping costs and what their expectations as consumers should be. Throwing your shit on the doorstep at 8 PM in the rain (and returning it or getting another one for free) shouldn’t be the norm. Raising shipping costs (when your competitors are offering shipping for basically free) shouldn’t be the answer.
Nobody writes letters anymore. The amount of mail has halved in the last couple of decades. It’s still in the billions, but it IS still billions. The plant in Montreal processes 25k letters/hour, but almost none of it is person-to-person. That’s a shame. I’m amazed CP doesn’t encourage more letter-writing, or offer some sort of email-to-letter boutique service.
Neighborhood mail (junk mail) is a huge business that makes CP a lot of money, and the company still makes a lot of money off package and parcel delivery. Those two are the priorities for letter carriers, especially temporary workers.
That said, the company spends a ton on new facilities, it’s very VERY top heavy, and it puts a lot of money aside. Changes need to be made (I think phasing out walking routes is, sadly, 100% necessary now) but pissing off the workers and painting us as the bad guys isn’t the way to do it.
The company is controlling the narrative and unfortunately the union is doing little to combat it. We should be in the media every single day countering every single point but for whatever reason we just can’t seem to be bothered
From what we’re hearing (or moreso, **not** hearing), contract negotiations are very far apart. With the NDP ripping up the supply confidence deal (possibly over forcing arbitration the rail worker settlement), we will likely be on strike in November and the government won’t be able to arbitrate us back without triggering an election. That puts a lot of pressure on both sides to start negotiating in good faith, because public opinion *does not matter* given the current political situation that unfolded yesterday. Employees need to understand this, we can be dragged through the mud and whatever other anti union / union busting mechanics the media wants to throw at us. **We do not need to give a single fuck about what the media says about us and our greedy demands for fair compensation**.
So we can be painted like monsters for biting the hand that feeds, I don’t care anymore. We’re paid the worst in the unionized public logistics sector in a time when no one can afford to live. The overall employee costs for Canada Post are under 50% of gross revenue. Based on operational costs of other logistics companies, that’s not overpaying us. The rest of the money is going *somewhere*, we don’t see improvements at the delivery level (routes get longer, less help around stations, fleet vehicles falling apart, etc.). So wtf is going on? Why can’t this company make a profit? Where is the government forensic audit to see where millions of dollars are being spent to generate these “losses”?
I use them often for my 3D printing side hustle. With how much they charge to ship stuff within the country. There is no way they are going broke. A package going from London, Ontario to Coburg Ontario cost me $36 dollars. But an identical package with the same thing inside being sent to fort Worth Texas was $13… It’s to the point now where I just don’t take Canadian customers anymore. The shipping costs are astronomical when staying inside the country.
Yes and no.
The company is losing money, big time. But, management is announcing it publicly and misrepresenting *why* it’s losing money because it is not negotiating in good faith.
At the start of COVID, there was a huge boom for parcel delivery. upper management decided to invest several billion dollars into a new sortation plant, new vehicles, and more. Then parcel delivery dried up b cause management has failed to keep Canada Post competitive with the likes of UPS and FedEx and especially Amazon and the small last mile delivery services like UniUni. So the wise thing to do would be to stop spending all that money, but they didn’t. If you look at their additional non-labour and non-delivery expenses, and draw a graph of those expenses correlated to the losses they are reporting, you would have a near perfect straight line.
The company has *hundreds* of unused brand new vehicles sitting idle, has spent more money installing devices in the used vehicles to monitor driver speed and seatbelt/ parking brake usage, spent roughly $3billion on a sortation centre that was built too late to be of any useand is trying to frame the conversation as “we can’t afford to pay letter carriers”.
Upper management went hog wild with spending in order to light the fuse on a bomb for negotiations and toss it at the union, but they have failed to realize that extreme spending is *actually* bad for the company and they’re in the blast radius too.
Canada Post has never been profitable and always operates at a loss but it’s owned by the government so it can’t fail lol
They made over a decades worth of pension contributions (making the plan fully funded under any accounting criteria, even if Canada Post shut down tomorrow) and opened a new plant last year. For a company about to run out of money they make weird decisions.
New trucks, and a bunch of brand new buildings for the sorting plants and it’s no wonder they’re reporting a loss.
They were publicly considering delivering residential mail 3 days a week and making community mail boxes the normal (in my area, none of the new constructions get their daily mail at the door). Wouldn’t save much AFAIK.
If they have too many of anything they can just sell pieces.
even if they were. its not like the gov would let them go under they would bail there asses out.