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The Way Forward for Canada Post

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The Way Forward for Canada Post THE WAY FORWARD FOR CANADA POST Report of the Standing Committee on Government Operations and Estimates Tom Lukiwski Chair DECEMBER 2016 42nd PARLIAMENT, 1st SESSION Published under the authority of the Speaker of the House of Commons SPEAKER’S PERMISSION Reproduction of the proceedings of the House of Commons and its Committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons. Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. The absolute privilege that applies to the proceedings of the House of Commons does not extend to these permitted reproductions. Where a reproduction includes briefs to a Standing Committee of the House of Commons, authorization for reproduction may be required from the authors in accordance with the Copyright Act. Nothing in this permission abrogates or derogates from the privileges, powers, immunities and rights of the House of Commons and its Committees. For greater certainty, this permission does not affect the prohibition against impeaching or questioning the proceedings of the House of Commons in courts or otherwise. The House of Commons retains the right and privilege to find users in contempt of Parliament if a reproduction or use is not in accordance with this permission. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca THE WAY FORWARD FOR CANADA POST Report of the Standing Committee on Government Operations and Estimates Tom Lukiwski Chair DECEMBER 2016 42nd PARLIAMENT, 1st SESSION STANDING COMMITTEE ON GOVERNMENT OPERATIONS AND ESTIMATES CHAIR Tom Lukiwski VICE-CHAIRS Yasmin Ratansi Erin Weir MEMBERS Ramez Ayoub Kelly McCauley Alupa Clarke Brenda Shanahan Francis Drouin Nick Whalen Raj Grewal OTHER MEMBERS OF PARLIAMENT WHO PARTICIPATED Dan Albas Angelo Iacono Leona Alleslev Majid Jowhari Chandra Arya Tom Kmiec Daniel Blaikie Joël Lightbound Bill Blair Alaina Lockhart Steven Blaney Larry Maguire John Brassard Sheila Malcolmson Matt DeCourcey Phil McColeman Sukh Dhaliwal Alexandra Mendès Linda Duncan Kyle Peterson Scott Duvall Yves Robillard Jacques Gourde Karine Trudel Cheryl Hardcastle Dianne L. Watts iii CLERK OF THE COMMITTEE Caroline Massicotte LIBRARY OF PARLIAMENT Parliamentary Information and Research Service Raphaëlle Deraspe, Analyst Emmanuel Préville, Analyst Audrey Ann Bélanger Baur, Research Assistant iv THE STANDING COMMITTEE ON GOVERNMENT OPERATIONS AND ESTIMATES has the honour to present its FOURTH REPORT Pursuant to its mandate under Standing Order 108(3)(c), the Committee has studied Canada Post and has agreed to report the following: v TABLE OF CONTENTS THE WAY FORWARD FOR CANADA POST ................................................................. 1 1. EXECUTIVE SUMMARY ....................................................................................... 1 2. INTRODUCTION ................................................................................................... 2 2.1 Study on Canada Post .................................................................................... 2 2.2 Historical Overview of Canada Post ............................................................... 3 2.3 Canada Post’s Future and Challenges ........................................................... 5 PART I: WHAT THE COMMITTEE HEARD ............................................................... 5 3. FROM THE TASK FORCE .................................................................................... 5 3.1 Members’ Testimony ...................................................................................... 5 3.1.1 Consultants’ Testimony .......................................................................... 6 3.1.1.1 Ernst & Young ............................................................................. 6 3.1.1.2 Oliver Wyman.............................................................................. 6 3.2 Testimony Regarding the Task Force and Its Consultants ............................. 7 3.2.1 From Canada Post Officials ................................................................... 7 3.2.2 From Union Representatives and Employees ........................................ 7 3.2.3 From Researchers, Academics and Experts .......................................... 9 4. FROM CANADA POST OFFICIALS .................................................................... 10 4.1 Officials’ Testimony ...................................................................................... 10 4.2 Testimony Regarding Canada Post .............................................................. 12 4.2.1 From Union Representatives and Employees ...................................... 12 4.2.2 From Municipal Officials ....................................................................... 14 4.2.3 From Civil Society Organizations ......................................................... 15 4.2.4 From Businesses ................................................................................. 15 4.2.5 From Aboriginal Groups ....................................................................... 15 4.2.6 From Canadians in Urban Areas .......................................................... 16 4.2.7 From Researchers, Academics and Experts ........................................ 16 4.2.8 From Members of Parliament ............................................................... 16 5. FROM UNIONS AND EMPLOYEES .................................................................... 16 5.1 Union Representatives’ and Employees’ Testimony ..................................... 16 5.2 Testimony Regarding the Unions and Employees ........................................ 24 vii 5.2.1 From Businesses and Representatives of the Business Community ... 24 6. FROM MUNICIPAL OFFICIALS .......................................................................... 25 6.1 In Urban Areas ............................................................................................. 25 6.2 In Rural Areas ............................................................................................... 29 7. FROM REPRESENTATIVES OF CIVIL SOCIETY ORGANIZATIONS ................ 33 7.1 From Representatives of Seniors in Urban Areas ........................................ 33 7.2 From Representatives of Seniors in Rural Areas .......................................... 37 7.3 From Representatives of People with Disabilities ......................................... 38 7.4 From Other Representatives ........................................................................ 41 8. FROM BUSINESSES AND REPRESENTATIVES OF THE BUSINESS COMMUNITY ..................................................................................................... 42 8.1 In Urban Areas ............................................................................................. 42 8.2 In Rural Areas ............................................................................................... 50 9. FROM REPRESENTATIVES OF ABORIGINAL GROUPS ................................. 52 9.1 In Rural Areas ............................................................................................... 52 9.2 In Urban Areas ............................................................................................. 52 10. FROM CANADIANS .......................................................................................... 53 10.1 In Urban Areas ........................................................................................... 53 11. FROM RESEARCHERS, ACADEMICS AND EXPERTS ................................... 54 12. FROM MEMBERS OF PARLIAMENT ............................................................... 61 PART II: ANALYSIS ................................................................................................. 64 1. CANADA POST’S GOVERNANCE ...................................................................... 64 1.1 Canada Post Corporation Act ....................................................................... 64 1.1.1 Background .......................................................................................... 64 1.1.2 Consultations ....................................................................................... 65 1.1.3 The Committee’s Observations and Recommendations ...................... 65 1.2 Canadian Postal Service Charter ................................................................. 66 1.2.1 Background .......................................................................................... 66 1.2.2 Consultations ....................................................................................... 67 1.2.3 The Committee’s Observations and Recommendations ...................... 68 1.3 Ombudsman at Canada Post and Postal Regulators ................................... 68 1.3.1 Background .......................................................................................... 68 1.3.1.1 Ombudsman at Canada Post .................................................... 68 viii 1.3.1.2 Postal Regulators .....................................................................
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