{"id":51,"date":"2015-04-14T17:27:49","date_gmt":"2015-04-14T17:27:49","guid":{"rendered":"http:\/\/cusjc.ca\/canadapost\/?p=51"},"modified":"2015-05-22T18:28:30","modified_gmt":"2015-05-22T18:28:30","slug":"the-privatization-question","status":"publish","type":"post","link":"https:\/\/cusjc.ca\/canadapost\/?p=51","title":{"rendered":"The privatization question"},"content":{"rendered":"<p>It is evident that if Canada Post sticks to the status quo, its future sustainability will be jeopardized. A competitive and unpredictable e-commerce sector is now exacerbated by the growing insignificance of postal mail, as well as the loss of personalized postal services. This unstable environment is further complicated by Canada Post\u2019s need to follow through on the universal service obligation, requiring the delivery of fewer letters to more Canadian addresses. These realities call for substantial change. For commonwealth countries such as Australia and the U.K., change has come in the form of privatization. In Canada, this prompts the question: should our national postal service be privatized as well?<\/p>\n<p class=\"subhead\">Canadian public enterprise<\/p>\n<p>Any discussion on Canadian privatization, usually interpreted as the sale of federal Crown corporations to private investors, requires a little history. In contrast to the U.S., Canada has often been considered a \u201cpublic enterprise country.\u201d This set an arguable precedent that, at least in part, influenced the command and control of the nation\u2019s railway, aviation and oil sectors for several decades. In this context, the topic of privatization at Canada Post evokes mixed, unresolved perspectives, some of which stick\u00a0to the old ethos, while others champion a new vision consistent with some modern trends and standards.<\/p>\n<p>Within this unsettled sphere, large companies such as the Canadian National Railway, Air Canada and Petro-Canada privatized ownership structures\u00a0in tune with contemporary commercial demands.<\/p>\n<blockquote><p>Considering Canada\u2019s public, federally oriented roots, Canada Post\u2019s Crown-controlled arrangement has endured beyond what some critics take to be its \u201cbest before\u201d date.<\/p><\/blockquote>\n<p>From a sociological perspective, University of Toronto law and economics professor Michael Trebilcock claims Canadians have been largely indifferent to privatization waves that began picking up speed in 1986. In 2007, Trebilcock took note of this nonchalant reaction while co-authoring a report on privatization titled <em><a href=\"http:\/\/www.cdhowe.org\/pdf\/commentary_243.pdf\">Rerouting the Mail: Why Canada Post is Due for Reform<\/a>. <\/em><\/p>\n<p>\u201cPrivatization happened and most people couldn&#8217;t care less. There might be some resistance but don\u2019t count on it enduring forever,\u201d says Trebilcock.<\/p>\n<p>Interest in privatization is hardly black and white however. Around the time that federal privatization took off in 1985 with the sale of Northern Transportation Company Ltd., the Economic Council of Canada reported in 1986 that public enterprise was, \u201c\u2026deeply embedded in the fabric of Canadian society.\u201d<\/p>\n<p class=\"subhead\">Foreign postal mail privatization<\/p>\n<p>Considering Canada\u2019s public, federally oriented roots, Canada Post\u2019s Crown-controlled arrangement has endured beyond what some critics take to be its \u201cbest before\u201d date. On an international scale, industrialized countries akin to Canada have, since the late 1980s, moved increasingly towards deregulation. Reforms in countries such as Finland, Germany and the Netherlands have concentrated on commercial, liberalized objectives in shifting the nature of postal mail systems.<\/p>\n<h3 style=\"text-align: left;\">G7 postal mail ownership structures<\/h3>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.google.com\/fusiontables\/embedviz?q=select+col1+from+1Z0YKN6-AtYF_m82l7LB8NH5CI8j9k8hN3eQx5sEd&amp;viz=MAP&amp;h=false&amp;lat=61.4196119767323&amp;lng=9.927198905052155&amp;t=1&amp;z=2&amp;l=col1&amp;y=2&amp;tmplt=2&amp;hml=TWO_COL_LAT_LNG\" width=\"700\" height=\"430\" frameborder=\"no\" scrolling=\"no\"><\/iframe><\/p>\n<p><strong><span style=\"font-size: 18px;\">Map Legend<\/span><\/strong> <em>Move map to see all points<\/em><\/p>\n<div style=\"background-color: #fb654d; color: #fff; padding: 3px; width: 75px; display: inline-block; border: 2px solid #333; margin-bottom: 15px;\">Public<\/div>\n<div style=\"background-color: #fff; color: #333; padding: 3px; width: 75px; display: inline-block; border: 2px solid #333; margin-bottom: 15px;\">Independent<\/div>\n<div style=\"background-color: #56d7d8; color: #fff; padding: 3px; width: 75px; display: inline-block; border: 2px solid #333; margin-bottom: 15px;\">Private<\/div>\n<p>These transformations are highly contested. In 2013, this was seen in the sale of the U.K.\u2019s Royal Mail, which was, according to many taxpayers, severely undervalued by the government. On the flip side, privatization is known to bring many attractive benefits. For instance, due to the effects of competitive conditions, private entities often have improved management incentives. This becomes all the more evident when contrasted with government ownership incentives, which are frequently influenced by politics and bureaucracy.<\/p>\n<p class=\"subhead\">Private performance<\/p>\n<p>Enhanced performance in commercial settings has resulted in financial gains for many commercialized Canadian companies. For instance, in a 2012 University of Calgary<a href=\"http:\/\/www.policyschool.ucalgary.ca\/sites\/default\/files\/research\/boardman-vining-privatization.pdf\"> paper<\/a> on major Canadian federal and provincial privatizations, it was found that among firms that transitioned between the mid-1980s and the mid-1990s, profitability increased. On average, sales grew each year following a three-year post-privatization model.<\/p>\n<p><script src=\"https:\/\/public.tableau.com\/javascripts\/api\/viz_v1.js\" type=\"text\/javascript\"><\/script><\/p>\n<div class=\"tableauPlaceholder\" style=\"width: 704px; height: 769px;\"><noscript><a href='#'><img alt='Major Canadian Federal Privatizations Since 1985 ' src='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;Fe&#47;Federalprivatizationsfinal&#47;Dashboard1&#47;1_rss.png' style='border: none' \/><\/a><\/noscript><object class=\"tableauViz\" style=\"display: none;\" width=\"704\" height=\"769\"><param name=\"host_url\" value=\"https%3A%2F%2Fpublic.tableau.com%2F\" \/><param name=\"site_root\" value=\"\" \/><param name=\"name\" value=\"Federalprivatizationsfinal\/Dashboard1\" \/><param name=\"tabs\" value=\"no\" \/><param name=\"toolbar\" value=\"yes\" \/><param name=\"static_image\" value=\"https:\/\/public.tableau.com\/static\/images\/Fe\/Federalprivatizationsfinal\/Dashboard1\/1.png\" \/><param name=\"animate_transition\" value=\"yes\" \/><param name=\"display_static_image\" value=\"yes\" \/><param name=\"display_spinner\" value=\"yes\" \/><param name=\"display_overlay\" value=\"yes\" \/><param name=\"display_count\" value=\"yes\" \/><param name=\"showVizHome\" value=\"no\" \/><param name=\"showTabs\" value=\"y\" \/><param name=\"bootstrapWhenNotified\" value=\"true\" \/><\/object><\/div>\n<p style=\"text-align: left;\"><em>Source:\u00a0<\/em>University of Calgary<\/p>\n<p style=\"text-align: left;\">While managerial and financial benefits are tied to several cases of Canadian privatization, features unique to the postal mail sector make privatization all the more complex. Unlike other competitive enterprises, Canada Post\u2019s mandate is focused on breaking even, separating it from private operations seeking returns roughly equal to or greater than the competition.<\/p>\n<blockquote>\n<p style=\"text-align: left;\">\u201cThere are different ways of privatizing\u2026Canada Post could contract out its delivery and pickup services while still setting the parameters about how Canada Post works in the country.&#8221;-Benjamin Dachis<\/p>\n<\/blockquote>\n<p>This minimalist return system is premised on Canada Post\u2019s primary objectives, which include the provision of a public good grounded in consistent service and pricing, even when there are zero prospects of generating excess revenue.<\/p>\n<p>At CUPW, members are concerned that privatization could threaten the quality of Canada Post\u2019s operations, as well as its capacity to offer uniform fees across the nation. CUPW research director Geoff Bickerton is confident that this would be the case if the federal government were to sell Canada Post to a private bidder.<\/p>\n<p>\u201cCanada Post is not driven by the economics of where the money in the country is or where the large populations are based\u2026without a public policy mandate, there would be less incentive to have one price for letters throughout the country,\u201d says Bickerton.<\/p>\n<p><div id=\"attachment_297\" style=\"width: 410px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-297\" class=\"wp-image-297\" src=\"http:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/Geoff-2-683x1024.jpg\" alt=\"Geoff 2\" width=\"400\" height=\"600\" srcset=\"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/Geoff-2-683x1024.jpg 683w, https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/Geoff-2-200x300.jpg 200w, https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/Geoff-2.jpg 2000w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><p id=\"caption-attachment-297\" class=\"wp-caption-text\">Geoff Bickerton at the CUPW national office. [Photo \u00a9 Jordanna Tennebaum]<\/p><\/div>Running against CUPW\u2019s objections are privatization advocates supporting systems that commercialize Canada Post without compromising its central intents and purposes. The C.D. Howe Institute\u2019s senior policy analyst Benjamin Dachis is adamant about the need for this form of regulated privatization, supporting economic success while also maintaining Canada Post staples such as stable pricing and the USO. This could be achieved through the establishment of a regulator or an independent review board addressing post-privatization issues.<\/p>\n<p>\u201cThere are different ways of privatizing\u2026Canada Post could contract out its delivery and pickup services while still setting the parameters about how Canada Post works in the country,\u201d says Dachis.<\/p>\n<p>No matter the privatization framework, some Canada Post employees on the inside of the corporation are concerned that commercialization would put workers in a compromising position. Although Tyrer is a Canada Post veteran, she predicts that profitability will take away from labour security.<\/p>\n<p>\u201cPrivatization means the goal would be bigger and bigger profits. Bigger profits come about through price increases as well as cost cutting. There would be downward pressure on wages and benefits,\u201d says Tyrer.<\/p>\n<p class=\"subhead\">Political influence<\/p>\n<p>Unfortunately for unionized employees in agreement with Tyrer, the potential privatization of Canada\u2019s postal mail industry depends heavily on political factors. According to a 2014 <a href=\"https:\/\/www.blacklocks.ca\/pm-eyes-postal-privatization\/\">access to information request<\/a> submitted by Ottawa\u2019s Blacklock\u2019s Reporter, the Prime Minister\u2019s Office conducted a highly secretive study assessing privatization. As the analysis was issued just months before Canada Post announced its<a href=\"https:\/\/www.canadapost.ca\/cpo\/mc\/aboutus\/news\/pr\/2013\/2013_action_plan.jsf\"> five-point plan<\/a> cutting services and jobs, some Canadians speculate that the Conservative government aims to attract private investors to a more appealing, downsized corporation.<\/p>\n<blockquote><p>Governmentally operated postal mail systems are increasingly incompatible with unregulated markets, fierce competition&#8230;and the near global presence of virtual communications.<\/p><\/blockquote>\n<p>Even at the upper echelons of the Crown corporation, senior staff members recognize that privatization options rest with the government. Canada Post media relations manager Phil Legault admits that ownership is determined by federal resolutions separate from his interests, not to mention those of his colleagues.<\/p>\n<p>\u201cPrivatization is not an issue that we comment on. It\u2019s not our decision. This is a question for the shareholder, the federal government, not Canada Post management,\u201d says Legault.<\/p>\n<p>Whether or not Conservative privatization speculation is warranted, the time is certainly ripe for new executive leadership. Governmentally operated postal mail systems are increasingly incompatible with unregulated markets, fierce competition from powerful international firms and the near global presence of virtual communications. In terms of Canada Post\u2019s own position in this complex, transient environment, voices on either side of the public\/private divide speak to a precarious situation with no clear end in site. No matter the result, the continued discussion of a privatized Canada Post amongst academics, public policy officials and the federal government suggests widespread recognition of dysfunction within the Crown corporation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada Post&#8217;s status quo jeopardizes its future and sustainability. For commonwealth countries such as Australia and the U.K., postal change has come in the form of privatization. In Canada, this prompts the question: should our national mailing service be privatized as well?<\/p>\n","protected":false},"author":2,"featured_media":72,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-51","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The privatization question - Modern Mail<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cusjc.ca\/canadapost\/?p=51\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The privatization question - Modern Mail\" \/>\n<meta property=\"og:description\" content=\"Canada Post&#039;s status quo jeopardizes its future and sustainability. For commonwealth countries such as Australia and the U.K., postal change has come in the form of privatization. In Canada, this prompts the question: should our national mailing service be privatized as well?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cusjc.ca\/canadapost\/?p=51\" \/>\n<meta property=\"og:site_name\" content=\"Modern Mail\" \/>\n<meta property=\"article:published_time\" content=\"2015-04-14T17:27:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-05-22T18:28:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1635\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jordanna Tennebaum\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cusjc.ca\/canadapost\/#website\",\"url\":\"https:\/\/cusjc.ca\/canadapost\/\",\"name\":\"Modern Mail\",\"description\":\"Can Canada Post survive in the digital age?\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/cusjc.ca\/canadapost\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cusjc.ca\/canadapost\/?p=51#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg\",\"contentUrl\":\"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg\",\"width\":2000,\"height\":1635},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cusjc.ca\/canadapost\/?p=51#webpage\",\"url\":\"https:\/\/cusjc.ca\/canadapost\/?p=51\",\"name\":\"The privatization question - Modern Mail\",\"isPartOf\":{\"@id\":\"https:\/\/cusjc.ca\/canadapost\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cusjc.ca\/canadapost\/?p=51#primaryimage\"},\"datePublished\":\"2015-04-14T17:27:49+00:00\",\"dateModified\":\"2015-05-22T18:28:30+00:00\",\"author\":{\"@id\":\"https:\/\/cusjc.ca\/canadapost\/#\/schema\/person\/8d8efd0ec3ed2b6b5fb516a54249d50a\"},\"breadcrumb\":{\"@id\":\"https:\/\/cusjc.ca\/canadapost\/?p=51#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cusjc.ca\/canadapost\/?p=51\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cusjc.ca\/canadapost\/?p=51#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cusjc.ca\/canadapost\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The privatization question\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/cusjc.ca\/canadapost\/#\/schema\/person\/8d8efd0ec3ed2b6b5fb516a54249d50a\",\"name\":\"Jordanna Tennebaum\",\"url\":\"https:\/\/cusjc.ca\/canadapost\/?author=2\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The privatization question - Modern Mail","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cusjc.ca\/canadapost\/?p=51","og_locale":"en_US","og_type":"article","og_title":"The privatization question - Modern Mail","og_description":"Canada Post's status quo jeopardizes its future and sustainability. For commonwealth countries such as Australia and the U.K., postal change has come in the form of privatization. In Canada, this prompts the question: should our national mailing service be privatized as well?","og_url":"https:\/\/cusjc.ca\/canadapost\/?p=51","og_site_name":"Modern Mail","article_published_time":"2015-04-14T17:27:49+00:00","article_modified_time":"2015-05-22T18:28:30+00:00","og_image":[{"width":2000,"height":1635,"url":"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg","type":"image\/jpeg"}],"twitter_misc":{"Written by":"Jordanna Tennebaum","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/cusjc.ca\/canadapost\/#website","url":"https:\/\/cusjc.ca\/canadapost\/","name":"Modern Mail","description":"Can Canada Post survive in the digital age?","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cusjc.ca\/canadapost\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/cusjc.ca\/canadapost\/?p=51#primaryimage","inLanguage":"en-US","url":"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg","contentUrl":"https:\/\/cusjc.ca\/canadapost\/wp-content\/uploads\/2015\/04\/jacket.jpg","width":2000,"height":1635},{"@type":"WebPage","@id":"https:\/\/cusjc.ca\/canadapost\/?p=51#webpage","url":"https:\/\/cusjc.ca\/canadapost\/?p=51","name":"The privatization question - Modern Mail","isPartOf":{"@id":"https:\/\/cusjc.ca\/canadapost\/#website"},"primaryImageOfPage":{"@id":"https:\/\/cusjc.ca\/canadapost\/?p=51#primaryimage"},"datePublished":"2015-04-14T17:27:49+00:00","dateModified":"2015-05-22T18:28:30+00:00","author":{"@id":"https:\/\/cusjc.ca\/canadapost\/#\/schema\/person\/8d8efd0ec3ed2b6b5fb516a54249d50a"},"breadcrumb":{"@id":"https:\/\/cusjc.ca\/canadapost\/?p=51#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cusjc.ca\/canadapost\/?p=51"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cusjc.ca\/canadapost\/?p=51#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cusjc.ca\/canadapost\/"},{"@type":"ListItem","position":2,"name":"The privatization question"}]},{"@type":"Person","@id":"https:\/\/cusjc.ca\/canadapost\/#\/schema\/person\/8d8efd0ec3ed2b6b5fb516a54249d50a","name":"Jordanna Tennebaum","url":"https:\/\/cusjc.ca\/canadapost\/?author=2"}]}},"_links":{"self":[{"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/posts\/51","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51"}],"version-history":[{"count":78,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/posts\/51\/revisions"}],"predecessor-version":[{"id":459,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/posts\/51\/revisions\/459"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=\/wp\/v2\/media\/72"}],"wp:attachment":[{"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cusjc.ca\/canadapost\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}