Why Canada Post Workers Should Take the Buy Out!
It’s it’s early July 2016 and Canada Post is about to strike. What’s this strike really about? Well this strike is about pensions. Lies being spun by the union revolve around Canada Post being profitable. Buts that’s not really the problem now is it. The problem is LIABILITIES! Paying retired postal workers that will no longer be working at Canada post and continuing the same cycle into the future is the real issue.
Why there’s a buy out on it’s way and why you should take it!
Most of my predictions have come true. It’s July 5 2016.
Can’t say when exactly but this buy out will arrive because after all we have Liberals in power and Liberals have this way of kicking the can down the road. But Canada post’s current model in the digital age similar to Canada’s telecommunications industry is non competitive. Infact if Canada post really had to compete, they’d be wiped out by competitors and they’d be regulated to snail mail based on their current business model. What’s keeping Canada post afloat is the federal government.
Is Canada post profitable?
Of Course it is. LOL! People don’t have a choice! Canada post has effectively limited what small businesses can do which in turn forces the federal government not to over tax small businesses. If Canada post didn’t have a monopoly on how Canadians delivered mail there would be an EXPLOSION in small businesses in Canada. Did you know it’s actually cheaper to send mail to Canada from the U.S than it is to send mail from Canada to another Canadian province? Of course Canada post is profitable LOL! Canadians have no choice and that’s the part of the story that the Union currently representing Canada posts doesn’t make clear to its workers. Canada post is profitable and they’re profitable because hey they have NO REAL competition.
Is Canada Post is a waste of taxpayers’ money?
That’s one hell of a question especially when analyzed correctly. Canada post became a Crown Corporation in the early 1980s you can read more about that here: https://en.wikipedia.org/wiki/Canada_Post and since then Canada post has used it’s political influence to assure it’s monopolies remain in tact. But there’s a whole new problem emerging that Canada post workers need to comprehend GLOBALISM IS HERE! and now more than ever Canada post will need to be flexible. The Government understands this, Stephen Harper understood this and I’m sure Trudeau understands this.
Prior to the creation of electronic mail (email), Canada post could raise prices unjustly and they wouldn’t have to worry because it was a guarantee that snail mail was a necessity, so predicting earnings was simple, but things have changed now and unfortunately for Canada post, they’ve gone big, they went after the corporate customers which unfortunately for Canada post workers… also do quite a bit of hiring themselves, which gives them say in the political arena. You see the bigger a union gets the more influence it has in politics. This works effectively if your main customers are INDIVIDUALS (Snail mailers) But when your target markets are corporations such as wal mart for example that hires thousands of people and pays its fair share of taxes and has it’s own political influence. What do you think will happen if you lose a few hundred of those customers??? Think about it for a moment. Even the federal government is forcing tax recipients to get direct deposits. Think about it for a moment.
Why The Unions can’t save you this time… And why it would be smart to take the Buy Out that’s on it’s way!
Notice that there are Canadians that want to save door to door delivery, that’s really what Canada Post is all about, and quite frankly if Canada Post focused on what appears to be a small demographic they could have actually been in a much better negotiating position with the creation of the Internet. USPS has done a pretty decent job at identifying how to help small businesses. How this ties to the Canada post workers and their Unions is that they’re swimming with sharks now. They’re swimming with the corporate sharks that do a lot of hiring themselves. Canada posts in 2016 currently employs over 65,000 people but…. You see these other corporations they hire a lot of people too and can’t be bullied into paying higher prices which brings me to pensions and buy outs.
Canada Post Pensions and Buy Outs!
The story being spun by unions is that this pension crisis is fictitious, it’s not real, Canada Post is profitable? If you’ve been reading this all the way through by now you’ve by now started to see how everything connects. The real problem here is the union, they’re trapped, they’re representing to many workers and it’s not that the money in the pot is dried up it’s that it’s drying up, it’s no longer GUARANTEED because who is Canada Post going to raise prices on? Big Corporations who have other options! It’s easy to raise prices on snail mail, but if you raise prices on big corporations well they have other options, they can take their business elsewhere. Not only can they take their business elsewhere but they can talk to the PM directly.
What am I talking about you ask? Well if Canada post goes on strike do you think those corporate businesses that leave have to come back? What does Canada post have over these big corporations that have way less liabilities and way more resources than Canada post has? I say NOTHING! The Unions won’t tell you this story, most likely the union will do the same thing to you that happened to GM’s workers.
What was the problem with GM? It got too big, it’s union got too big, it’s union had to represent entities and individuals that weren’t even profitable. Once a business loses it’s flexibility it becomes vulnerable to extinction. GM got fat and it felt like no matter what it did it’s customer base would be there. Well unfortunately for GM it wasn’t able to live up to its projected earnings and it was forced to restructure. Forced to go into a form of bankruptcy, forced to consolidate with lenders, GM pretty much forced the Government to step in and bail them out.
Big deal a bail out means you’ll get paid right? Sure you’ll get paid but you’ll get paid a fraction of the fraction that will be offered to you when the buy out presents itself. If you work for Canada post all I’m saying to you is look at their business model for what it is and not what the union paints it to be. Ask your unions to DEFINE WHAT PROFITABLE IS? Ask your unions why they are so certain Canada post will remain profitable in the future? Ask them about contracts with big companies, ask them the length’s of those contracts and if those contracts are guaranteed.
Canada Post Needs Restructuring and I suspect this restructuring will result in layoffs down the line.
The stance taken by the Union in July 2016 is very interesting, it’s almost like they’re accelerating the process, of their extinction. What they’re doing is a very bad move and ultimately it will be the workers that pay for it. If Canada post’s main customer was individual consumers, the deal they’re proposing would make sense but because Canada post is appealing to big corporations the continuation of their pension plans need be changed to leave Canada post some flexibility in the event they lose corporate customers which I suspect will happen once the workers go on strike.
If you work for Canada post and you’re offered a buyout I say take it if not at the very least consider it. If this Canada post strike get nasty, workers you’re job security is in some serious trouble. check the facts!
