OPEN LETTER                                   Montreal, June 8th, 2025

 

To: All Members of Parliament in the House of Commons by personalized email

CC: All Media / Canadians

 

VERSION EN FRANCAIS: https://chng.it/DqcQs2kKKd

 

My name is Lorraine. I’ve been a letter carrier at Canada Post since 2017, and speak only for myself.

 

In 2018, the Minister of Public Services and Procurement announced its vision for change at Canada Post, with priority to be given to service to Canadians. The Canada Post Board of Directors was renewed, a new CEO and Chair were appointed to follow the “Renewal of Canada Post” guidelines. Jessica L. McDonald - Chair, Board of Directors, CPC in 2018: “It’s an honour to be chosen to lead the renewal of a treasured Canadian institution. The first priority for our leadership team will be to focus on a collaborative and positive relationship with Canada Post’s employees and the unions that represent them. They have a key role in creating the innovative culture and flexibility needed to ensure the Corporation continues to deliver high-quality affordable services that meet the evolving needs of Canadians.”

 

However, the Government of Canada failed to undertake the necessary monitoring to ensure that Canada Post respects the guidelines set forth. As a result, in 2025, seven years later, Canada Post is not only failing to implement these guidelines but has adopted an approach diametrically opposed to them. Despite the catastrophic results, the CEO was rewarded with a contract extension/renewal in 2023.

 

2014-2017 ANNUAL AVG - Canada Post (CPC) delivered an average of 196 million parcels, and made an avg of $97M in profit on avg $6.28 billion revenue. Capital spending avg: $252M

2018-2023 Canada Post (CPC) delivered an avg of 325 million parcels (66% increase over previous stated period), yet somehow declared an avg loss of $499 M on avg $6.96 billion revenue. Capital spending avg $395M (>57%)

SOURCE: spreadsheet linked below signature based on CPC Annual reports

 

Clearly this situation is not the result of “market forces” or labour costs as management likes to claim. With the Canadian parcel market growing exponentially what is being framed as a “loss of market share” does not mean a loss in parcel volume, as is evident by the numbers. Revenue increased sharply by 17% between 2014 $6.2 Billion to 2021 $7.3 Billion only to start falling slightly thereafter.

 

Among other issues (all figures SOURCED through CPC Annual Reports):

* Despite the appalling performance of CPC, total Mgt compensation is up 60% from $10M (2017) to $16M (2024)

* Increase in the number of middle-managers has outpaced 2 to 1 the increase in rank-and-file workers

* Capital investments (Capex) alone continue skyrocketing: 2018-2023 avg hit 157% of the 2014-2017 avg. Total spending for 2021-2023 were $635M, $722M and $743M respectively

* After 5 years of deficits (2018-2022) totaling $2.2B where $1.98B total in capital spending was declared, management continued its reckless strategy in 2023 by spending $743M total (cap + non-cap) while declaring a $748M loss for that same year! It’s mind-boggling

* Millions of dollars’ worth of brand-new vehicles have been sitting untouched in CPC parking lots across Canada for over a year with no reasonable justification. This is just the tip of the iceberg of wasteful spending. CPC has also scrapped many functioning vehicles and then rented because the brand-new replacements were faulty, or there weren't enough vehicles to cover needs

* Restructuring of depots and a forced new work-flow is and has been extremely costly, but with no practical or financial justification or benefit, and instead has resulted in a spike in burnouts, injuries, micro-management, dehumanization and alienation of employees, and a severe drop in the level of personalized service to the public not to mention low morale

* It is difficult to analyze spending trends in depth when things such as the cost of carbon offsets aren’t easy to find in the financial reports, or elsewhere

 

Countries around the world have their Post Offices provide Postal Banking services, as did we until 1968.  Relaunching this service would ensure Canada Post’s profitability far into the future by tapping into the $58 billon in profit the Big Six private banks shared in 2024 alone, while also providing Canadians with convenient and low-cost services. In 2013 Canada Post conducted a compelling and all-encompassing report on postal banking yet continue to suppress the very positive results.

 

Management of Canada Post has failed. How can we be expected to move forward with the same management team and strategy that got us here? The corporation reframes its narrative on the numbers depending on the situation. For instance, the declaration of a “$3B loss in 6 years” during collective bargaining in 2024 came less than a year after the CEO proudly announced a 5-year plan to invest $4B (SOURCE: 2022 Financial Reports President’s Message.) Is it cynical to point out that this framing undermines the Union's position in the collective bargaining process and might be seen as an attempt to get the public, politicians and media onside?

 

It behooves me to ask that you:

(1) IMMEDIATELY get the Auditor General, as well the Public Sector Integrity Commissioner to do performance audits, forensic financial audits, and investigations into any potential conflicts of interest of current and former Board members and officers who serve on the Board of Purolator, and whether they get shares in Puro. If Board members who have/had ties to equipment suppliers. The relationship-change with Amazon in 2022 needs to be investigated.

(2) Put an IMMEDIATE halt on any and all divestments incl. but not limited to any selling off of real estate, transfer of client contracts to other carriers (such as Purolator), etc. Demand full transparency of sales of any type currently in the works.

(3) IMMEDIATELY halt any and all activity related to “restructuring” of depots and so-called “modernizing” of work methods that are costly financially, and quality of public service.

(4) Open an inquest into the rapid deterioration of working conditions in recent years, and the added costs from such inefficient workflow changes (particularly the new SSD system) by allowing a public inquiry/audience to let employees and/or the union present their stories, and give many examples of wasteful spending.

(5) SUMMON Canada Post to release the FULL and UNREDACTED and UNEDITED report on Postal Banking from +/- 2013. Banking: A Proven Diversification Strategy. See LINK below signature for informative article.

(6) DEMAND a full, detailed list of all capital expenditure projects over $100M (2018-present)

(7) Ensure accountability at all levels where impropriety is found. Ensure accountability at all levels where wrongdoing is found.

(8) Ban any and all executive bonuses based on anything other than financial targets, and make sure any bonus scheme trickles down to ALL levels of employee, as was in effect until 2011.

(9) Take advantage of expertise by having experienced postal workers in some form of consultation role for any major decisions involving workflow and equipment.

I remain at your disposal for any further discussion or questions you may have about any of the information on my spreadsheet or contained herein. We can’t continue on our current trajectory without answers to the questions of intent raised by management’s actions, especially since the dramatic and obvious shift in 2018.

 

Humbly yours,

 

Lorraine Muller

A citizen. A proud and passionate Postal Worker in dedicated service to the public

 

LINK to spreadsheet:   https://bit.ly/CPC-financials  

ARTICLE on Postal Banking from 2014: https://www.blacklocks.ca/canada-postal-banks-win-win-secret-records-show/

Petition in support of this open letter https://chng.it/f7N6xyGVWC

Related PETITION Aug 2024: 3200+ signatures word of mouth only (FR + EN) https://chng.it/ZMK8bnzS8Y