The Canadian Union of Postal Workers is pointing out that Canada Post’s press release is highly misleading, continuing its record of downplaying financial success in order to impose unnecessary cost-cutting measures.
“Looking at the report, for the first three quarters, we see an overall profit of almost $30 million ($28 million). Once again, in 2015, Canada Post is on track to surpass its projections,” said Mike Palecek, National President of CUPW.
The Canada Post news release headline emphasized the $13 million 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 $10 million for the third quarter and $28 million for the first three-quarters of 2015.
The post office is a seasonal business, depending heavily on holiday sales for its success. The union cautions Canadians not to be misled by third-quarter results, which are normally lower. In 2014, for example, the fourth quarter generated $185 million in profit, $150 million more than the third quarter profit.
“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” said Palecek.
After making a profit in the second quarter of the year, Canada Post has reported a loss of $13 million in the third quarter.
In the first nine months of the year, the Crown corporation lost $20 million before tax, a figure that is likely to play into upcoming decisions over door-to-door delivery.
On Oct. 26, after the election of the Liberals, Canada Post put the transition to community mailboxes on hold, saying it will work “collaboratively” with the Government of Canada to determine the best path forward.
Royal Mail plc (RMG.L) today announced its results for the half year ended 27 September 2015.
Moya Greene, Chief Executive Officer, commenting on the results, said:
“Royal Mail is the pre-eminent letters and parcels carrier in the UK. We have delivered a resilient performance in the first half, demonstrating our ability to respond to a competitive trading environment. Continue reading →
UK Mail saw its shares plunge by more than 17.5pc after the company issued a fresh profit warning as its parcel delivery service struggles with a move to a new fully automatic processing facility.
The independent postal services provider said the difficult transition to a new head office and hub from Birmingham to Coventry meant expectations for next year’s financial performance had “softened slightly”.
Royal Mail plc today announces it has agreed to acquire eCourier, a leading same day delivery company operating mainly in the Greater London area and offering nationwide distribution. The combination of eCourier and Royal Mail Sameday®, Royal Mail’s existing courier business, will create a significant player in the national same day delivery market.
The acquisition of eCourier supports Royal Mail’s strategic objective to enhance its parcel offering, expand its network and capture more value in the fastest growing segments of the UK parcels market. Royal Mail is already a leading player in other key parcels segments like business-to-business and business-to-consumer.
Same day delivery is a premium segment of the parcels market, with an estimated value of over £500 million1, and growing rapidly at around 4-5 per cent per year2. While it is principally a B2B market, the currently modest B2C segment is expanding rapidly, driven by the e-commerce trends and the increasing consumer demand for faster fulfilment.
Royal Mail provides a nationwide same day service through its Royal Mail Sameday®courier services and partner companies, with a limited footprint in London. eCourier generated revenue of approximately £19 million in 2014-153. eCourier’s main shareholder and CEO, Ian Oliver, will remain in role. The financial terms of the transaction are not material in the context of the Royal Mail Group as a whole.
Moya Greene, Chief Executive Officer, Royal Mail,said: “Today’s announcement marks another milestone in our strategic objective of increasing our presence in growth areas of the parcels market.Same day deliveries are already one of the fastest growing segments of the UK parcels market.”
11/16/2015 – The Postal Service’s latest financial report, which showed an operating profit of $1.2 billion, is good news, said APWU President Mark Dimondstein.
“The report shows there is absolutely no justification for cuts in service to the American people or to the wages and benefits of postal employees,” he said. The Postal Service released the report for fiscal year 2015, which ran from Oct. 1, 2014, through Sept. 30, 2015, on Nov. 13.
The results mark the second consecutive year the USPS posted an operating profit of more than $1 billion and the third consecutive year Postal Service operations were “in the black.”
The positive financial report is the result of an improving economy and a sharp increase in package volume, Dimondstein noted. “I often say that the Internet taketh and the Internet giveth. First-class mail has declined, but online shopping has triggered an explosion in package volume.” In 2015, package volume increased by more than 11 percent over the previous year.
The Postal Service continues to show a net loss of $5.1 billion, “but that’s essentially a fraud,” Dimondstein said. “The entire loss was the result of a 2006 law that forces the Postal Service to pre-fund health care benefits for future retirees 75 years in advance,” he said. The Postal Service is the only entity – private or public – that is required to pre-fund benefits in this fashion.
The financial results bode well for the Postal Service and should give added momentum to efforts to developed postal reform legislation that will satisfy workers, customers and major mailers, Dimondstein said.
One of the issues the Liberal Party ran on in last week’s Canadaian parliamentary elections was Canada Post’s move to end home mail delivery. In light of the Conservative Government’s crushing defeat, Canada Post has suspended further cluster box conversions. The Crown Corporation released this statement today:
OTTAWA (Ont.) – Canada Post is temporarily suspending future deployment of the program to convert door-to-door mail delivery to community mailboxes. We will work collaboratively with the Government of Canada to determine the best path forward given the ongoing challenges faced by the Canadian postal system.
Efforts are now underway to place the comprehensive program on hold in an orderly fashion. This involves roughly 460,000 addresses across the country which are currently in the process to be converted to community mailboxes.
As a result, all conversions planned for November and December 2015 and those announced for 2016 will be placed on hold. Customers impacted by this decision will receive a letter within the next few weeks advising them of the status of their mail delivery service.
In neighbourhoods where the 10-month internal and community conversion process is complete, customers will collect mail and parcels at their community mailbox. This includes customers set to begin receiving their mail and parcels in their boxes in October. We remain focused on maintaining reliable postal service to all Canadians without disruption.
Yesterday’s election in Canada may mean the end for Canada Post’s plans to convert five million addresses from door-to-door delivery to cluster boxes.
After a decade in power, the Conservatives were routed in a landslide by Justin Trudeau and the Liberal Party. The Liberals had previously vowed to end the conversions and to conduct a thorough review of Canada Post. On their website, the Liberals say this:
“We will stop the Harper Conservatives’ plan to end door-to-door mail delivery in Canada. We will begin a new review of Canada Post to ensure that the Crown Corporation is fulfilling its public mandate to provide high-quality service at a reasonable cost to Canadians — urban, suburban, and rural. We disagree strongly with the Conservative decision to ask Canadians to pay more for a reduced quality of service.”
The union representing workers at the centre of a row which halted the country’s postal service for days is recommending to its members that they accept proposals aimed at resolving the dispute.
Independent industrial relations mediator Phil Flynn yesterday put forward a number of proposals in relation to revised shift patterns and pay levels to the Communication Workers Union (CWU) and An Post contractor IO Systems. The CWU will ballot its members on these on Saturday.
It’s been almost two years since Canada Post announced its controversial plan to overhaul its operations, and the outcome of Monday’s election may determine whether it will ever finish the job.
The NDP has said it will, if elected, tell Canada Post to reverse course on its plan to replace some home delivery with community mailboxes — the most contentious part of its five-point, five-year strategy — while the Tories say they stand by the changes which were announced, during their watch, in late 2013.
The Bloc Québécois and Greens also oppose the end of door-to-door and, like the NDP, have also come out against the postal service’s plan to eliminate as many as 8,000 jobs.