LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • 5 ways sudoku boosts brain health

  • 10 tips to successfully market your law firm

  • 7 Amazing Gifts for Kids Who Like to Cook

  • Make Mortgage Overpayments Work for You

  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19

Business
Home›Business›Canada Post Fears Retail Competition for Shipping

Canada Post Fears Retail Competition for Shipping

By admin
August 22, 2016
1689
0
Share:

Canada Post has fully embraced the parcels business as a way to compensate for a steep drop in letter mail, but it now worries about potential direct competition from retailers for shipping.

“Our largest parcel customer could deliver their own goods,” said Canada Post CEO Deepak Chopra during the post office’s annual meeting in Ottawa on Friday, as executives of the crown corporation presented 2015 financial results.

Chopra showed a slide of Amazon’s new Boeing 737 Prime Air, the first of 40 planned by the giant ecommerce company, as a way to bypass traditional shippers, ensuring fast delivery at lower costs. Amazon is also looking at using drones to make deliveries.

Another threat is the fact that more Canadian retailers are offering an “in-store pickup” option for online orders, where customers do the legwork to get their goods and avoid shipping charges, Chopra said.

That underscored Canada Post’s message that while the corporation managed to turn a “modest” profit last year, big challenges remain – especially as the company is in the middle of contract talks with its largest union, the Canadian Union of Postal Workers, which represents 50,000 employees in two units.

Last year, the post office recorded a $63 million profit, and when affiliated companies like Purolator Courier are included, it was $136 million.

Wayne Cheeseman, Canada Post’s chief financial officer, noted that it was a very small profit, given that Canada Post’s revenues exceeded $6 billion, and when additional companies are included it was $8 billion.

“It’s a marginal reflection of the size of the organization,” he said. “We are not out of the woods yet.”

Cheeseman specifically noted that the company’s pension plan faces a solvency deficit of $8.1 billion as of June 30, 2016, a jump from $6.2 billion at the end of December, blamed on low interest rates.

“The pension plan obligations are larger than the business on its own,” he said, though union officials point out that the solvency deficit is a measure used in the event a pension plan is wound up, such as when a company shut its doors.

The pension plan actually has a $1.2 billion surplus, if measured on an ongoing basis, and the federal government has granted Canada Post a delay on making any back payments it owes until after 2017.

But Cheeseman argued that just one year of zero returns would cost the pension plan $1 billion, and during the financial crisis of 2008, the plan recorded a negative return.

The company wants to switch all new hires to a cheaper defined contribution pension plan, making it one of the most contentious issues at the bargaining table with the Canadian Union of Postal Workers.

Newly hired management employees were switched to a defined contribution plan in 2010. The new pension plan also applies to three other small unions, including a switch ordered in an arbitration decision related to rural postmasters issued this week.

Mike Palecek, national president of the Canadian Union of Postal Workers, whose strike mandate expires on Aug. 25, said his union will not back down on this pension fight.

“We are not surprised that Canada Post chose smaller unions to bully (into the change),” he said. “When we succeed in defending our pension plan, it will open the door” to roll back pension changes at other unions.

Read More..

Post Views: 1,922
Previous Article

3 Ways time-challenged Can Manage Their Money?: ...

Next Article

“Normal” was Gap’s Strength, But the Market ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    CST’s RESPs Help To Plan For Your Child’s Education Costs

    August 12, 2018
    By admin
  • Business

    Sobeys Withdraws Appeal of Discrimination Decision as Company Faces Boycotts

    August 28, 2016
    By admin
  • Business

    The Secret to Workplace Resiliency

    June 29, 2016
    By admin
  • Business

    Unemployment Improves In Canada’s Largest Real Estate Markets, But Is Still Very High

    December 11, 2020
    By admin
  • Business

    TSX Ends Slightly Lower as U.S. Indexes Rally

    October 4, 2016
    By admin
  • Business

    VW Offers to Pay Canadian Owners $2.1B Over False Diesel Claims

    December 20, 2016
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Agora Publishing Consortium
  3. Le Journal Canadien
  4. Dominion: Food News
  5. LeCanadian.com
  6. The Ottawa Star
  7. Capitalistocracy.com
  8. Agora Books Author House
  9. First Nations Press
  10. The Etiquette Show
  11. Ontario People's Front





Mark's



Recent Posts

  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19
  • Catching Covid-19 after being vaccinated isn’t a myth. It happened to me
  • My COVID Story: “I got COVID after being fully vaccinated”
  • Albertans fully vaccinated for COVID-19 urged to stay cautious during pandemic’s 4th wave
  • I got the vaccine – and then I got Covid: Readers share their stories
  • Brazilian minister tests positive for Covid after meeting maskless Johnson

Most Viewed Posts

No Posts found

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating