Justin Trudeau to Cut Your Postal Services?: Amazon Canada’s distribution of personal protective equipment and supplies during COVID-19 response (Canada Post may overhaul mail delivery services) – February 7, 2022,
Recently Global News ran a story regarding Canada Post potentially having radical changes made to how it conducts its business, however, after careful review, their article was more of a clickbait article and not really substantive. But if you’re wondering why this is even happening, well, you’d have to go back to the last time Canada Post decided to go on strike and also the fact that during a period in which Canadians were at home due to covid-19, Canada Post found a way to be unprofitable in several quarters of the year 2021, while as everyone knows Amazon made record profits?
The Canada Post Group of Companies2 recorded a loss before tax of $191 million in the third quarter of 2021, marking a $25 million improvement from the $216 million loss before tax in the same period a year earlier.
One has to ask the question, how did Amazon manage to lose money during the pandemic? The answer is obvious, the Canadian Union of Postal Workers(CUPW) has always been the problem, Amazon isn’t Unionized and with Public Sector unions in Canada, there’s no incentive for their employees to be efficient. Now, I’ve stated in prior posts that the Canada Post pension program is the main reason why Canada Post is unprofitable, but of course, Canada Post employees don’t want you talking about changing their pension, so here we are, inflation is running rampant, Canada Post made their services more expensive for customers, they’re still losing money and they tried to make Trudeau look bad before Christmas in 2018.
In a previous post, I brought up Pierre Poilievre potentially being the head of the Conservative Party of Canada, and what this means for Justin Trudeau. If Pierre Poilievre becomes the leader of the Conservative Party of Canada, Justin Trudeau most likely will not call any more early elections as Pierre Poilievre unlike Erin O’Toole or Andrew Scheer could legitimately beat him. In a nutshell, in the next few years, it wouldn’t surprise me if Justin Trudeau starts finding a way to cut government spending.
Pierre Poilievre becomes first MP to bid for Conservative Party leadership | CBC.ca
Based on Justin Trudeau and Joe Biden’s energy policies I don’t see any way for them to stop consumer price inflation for the next 3 years, meaning that bankruptcies in Canada and the United States could start accelerating during an era in which the Federal Reserve and Bank of Canada have interest rates near zero percent. What most people may not be familiar with during inflationary periods is that it’s actually DEFLATIONARY for the economy and price controls can actually accelerate the problem.
If it costs you more money to purchase fewer goods and service, your standard of living is going down, and typically this is not a good thing for the politician in power. Because Canada Post is a public service that operates as a monopolistic Crown Corporation, it wouldn’t surprise me in the least if the Federal government seeks to shrink its size or change its business structure.
Federal government asked Canadians about radical changes to mail delivery | GlobalNews.ca
Both Justin Trudeau and current finance minister Chrystia Freeland grew up rather privileged, they’re second-generation politicians, who never had to balance a checkbook. Neither had to start a business, so it’s unlikely that they understand the challenges facing businesses as it relates to Canada Post, when I listened to the questions, Trudeau’s Liberals asked the people it surveyed, it was abundantly clear to me that, that they don’t understand why Canada Post is so unprofitable and inefficient for business people.
Because Canada Post is a monopoly, even with its flawed business model, it could finance pensions, the problem is the stupidity of CUPW, Union leaders know little about business and public sector unions are a Union boss’s dream come true because their stupidity is often rewarded with government bailouts.
When doing their survey, Trudeau’s Liberals asked all the WRONG questions, meaning that if the Liberals do make changes, chances are Trudeau will make things worse not better. Anyway, I’m not going to comment further on this topic, until I learn of the actual changes being made. I like to point out first and foremost that MACHINES require maintenance. People who never started a business, tend to forget that both software and hardware require CONSTANT maintenance.
I think a few weeks ago a software glitch in Tesla EVs caused the heaters to stop working. Now, at the very least Tesla Inc. is a profit-driven PRIVATE corporation that will go bankrupt if it doesn’t meet the demands of its consumers. Canada Post is a monopolistic Crown Corporation that struggles with its current automation. If you’ve noticed in most stores, self-checkout hasn’t equated to job losses? It’s because I like to point out that automation is a bit overrated.
Canada Post may overhaul mail delivery services: Ottawa | GlobalNews.ca
Interesting times ahead!