"Innovate and expand": CUPW's vision for keeping Canada Post out of the red

OTTAWA, Sept. 9 /CNW/ - Denis Lemelin is delivering an important message for the future of Canada Post.

Speaking at the Conference Board of Canada, the leader of the country's largest union of postal workers described the challenges of new technology and declining letter volumes as well as a growing concern for the environmental impact of mail delivery. While these issues are shaking up the post office, Lemelin, National President of the Canadian Union of Postal Workers, says his members are optimistic about the most trusted institution in the land.

"We are at a threshold," said Lemelin. "We have a real opportunity here to expand the services that we can provide to the public."

"Transaction mail" such as bills continues to decline. Still, said Lemelin, a growing population needs public postal service. Two million new "points of call" were added over the past decade, almost half in rural or suburban areas. Tens of millions of pieces of mail continue to be delivered to more than 15 million addresses.

So far, Canada Post has weathered the economic storm. In the past 15 years, it generated over $1.7 billion in profits, providing the federal government with a return of over $1.2 billion in dividends and income tax. "This is a remarkable record," Lemelin told the Conference Board. But the union leader acknowledges that the forecast is gloomy and that Canada Post could cease to be profitable in the near future.

The union's solution? Think outside the mailbox and offer innovative services, such as banking. There is a demand for such service in rural and low-income areas. Between 1993 and 2003, for example, Newfoundland and Labrador lost 23% of their bank branches.

"While Canada has talked about postal banking, the rest of the world has been doing it," said Lemelin. "Today, 1.5 billion people use the services of postal banks and more than 400 million people have postal bank accounts." Brazil, India, Italy and New Zealand all have postal banks, while the UK is considering it. New Zealand's "Kiwibank" now has more branches than any of the private sector operators. The idea has been raised before, but now it is time for a "firm plan of action" to launch a Canadian postal bank.

Banking is not the only expanded service Lemelin envisions. More parcel delivery, more door-to-door service, particularly for seniors and the disabled, and high-speed Internet at post office counters are some of the other possibilities for Canada Post. The CUPW president is adamant that the post office has a future in such innovations.

"We're suggesting ideas that can provide added revenues, reduce Canada Post's environmental footprint, and meet the ever-changing needs of the public," said Lemelin. "We can deliver the kind of public postal service people want."

For further information:

Aalya Ahmad, CUPW Communications at 613-327-1177 (cell)