Canada’s postal strike: Weekend edition

The rotating strikes continue for the moment in Hamilton. The walk-out started in Hamilton late Friday and will go for 48 hours.

CUPW continues its action against Canada Post as both sides get their message out about how the other side is intransigent in the negotiations. The interesting question is just what effect is the strike having on the average Canadian. Canada Post, in their press release of June 1 (see below) point out two significant aspects of their position. First, due to electronic communications and e-commerce, the Corporation has seen their business drop by 17% since 2006. Secondly, the Corporation does not rely on taxpayers’ dollars; it is self-sufficient. Do those two points mean that the landscape for our postal services is changing and changing dramatically? Unlike the Canada of 20 or 30 years ago before the days of the Internet and mail was the principal form of communication and business, how much of a Canadian’s day in the way of banking, credit card purchases, or the obtaining of information like online news and e-books is no longer carried out by mail but electronically over the Net directly with the provider? It is certainly a different world.

Michael Babad of the Globe and Mail indicates that the action Hamilton is supposed to continue over the weekend for 48 hours. However, he echoes the above points. In saying that the purpose of rotating strikes is to pressure the employer back to the bargaining table, with Canada Post the situation is different and rotating strikes are more of an inconvenience. With more and more business being conducted online, such a strike will probably serve in the long run of getting more business converted from snail mail to online transactions. Babad warns that CUPW is aware of the possible ineffectiveness of rotating strikes and CUPW has said it may change tactics. This could translate into an eventual national walk-out if Canada Post does not respond positively to this strike action by changing their offer.

A Canadian Press article talks about businesses affected by the strike where they continue to rely on cheques, yes, physical cheques to be paid by consumers and to pay suppliers. Some businesses are avoiding credit cards as they add to the costs of doing business however, it would seem inevitable that they must get on-board with the new world. Of course, we, the consumers, will have to recognise that those extra costs will be passed down to us on an individual basis. Just imagine what cut of the big picture companies like VISA, MasterCard, and other credit card companies are raking in as part of each and every transaction going on in the world. Somebody is paying for that and it’s us! The simple point about a postal strike is that any business that has not yet moved to an electronic payment scheme will more than likely do something about it. In the long run, it’s better to pay the cut to VISA than run the risk of having no income at all due to a postal strike.

The Daily Gleaner from Moncton, N.B. talks about a local business who is eyeing the possible strike action attentively. They move their product using Canada Post but are considering UPS if their deliveries are interrupted. Yes, Canada Post is cheaper than UPS but in the long run, something is better than nothing. In other words, paying more for UPS is better than doing nothing with a Canada Post out on strike.

CUPW-STTP: June 3, 2011: 1pm

Strike / Video: Opening Statement in English and French

http://www.cupw.ca/index.cfm/ci_id/13083/la_id/1.htm

(video is 8 minutes long)

http://www.youtube.com/watch?v=T5-yNm0CL9Q

Canada Post: Media Advisory – June 1/2011

Canada Post is determined to avoid becoming a drain on Canadian taxpayers

Canada Post President and CEO appeals to CUPW Leadership

Canadians live in a digital age that is increasingly driven by electronic communications and e-commerce. Online substitution of traditional mail continues to grow. As a result, Canada Post’s core Lettermail business has fallen by more than 17% per address since the beginning of 2006, This is not a trend that will reverse itself.

Despite this ongoing decline in Lettermail volumes Canada Post does not rely on taxpayers’ dollars and is working to ensure that does not change. Canada Post has also been able to keep the price of postage affordable and therefore accessible for the average Canadian. Businesses, small and large, depend heavily on an affordable postal system and cannot afford a steep price increase to pay for additional operating costs.

Click HERE to read more from William Belle

Article viewed at: Oye! Times at www.oyetimes.com