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Who killed Canada Post’s banking study?

Monday, February 10, 2014   by: SooToday.com Staff

NEWS RELEASE

CANADIAN UNION OF POSTAL WORKERS

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OTTAWA - Canada Post Corporation (CPC) conducted a secret four-year study on postal banking, which seems to indicate that getting into financial services would be “a win-win strategy” and a “proven money-maker” for the corporation.

CPC's research study was stopped cold in the fall of 2013, just before the post office announced a five-point plan of massive cuts and steep rate hikes.

Blacklock's Reporter obtained the internal report, including a management report entitled Banking: A Proven Diversification Strategy, through an Access to Information request.

701 of its 811 pages were redacted.

"Based on what we have learned so far," says Gayle Bossenberry, 1st National Vice-President of the Canadian Union of Postal Workers (CUPW), "it seems the report was on track to confirm the recommendations of the Canadian Centre for Policy Alternatives (CCPA), and vindicate what postal workers have been saying: there's a great potential here to keep the public postal service self-sufficient. But instead they killed the research and buried the report."

Other countries like Switzerland, New Zealand, Italy, and France have bolstered the fortunes of their post offices with revenues from postal banking.

In these countries, the public enjoys a stable public postal service, and increased access to banking.

According to the Blacklock’s article on the report, John Anderson -- author of the Canadian Centre for Policy Alternative's 2013 paper on postal banking -- was surprised by the CPC study but not its content:

"I think anyone seriously studying the subject would see the same opportunity. With 6500 post offices, Canada Post could have the most extensive financial services infrastructure in the country, right off the bat."

"If they were looking at postal banking, why did they consistently tell CUPW that it was not an option they would consider?” asked Bossenberry, adding “And who killed the study?"

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Note: Comments that appear on the site are not the opinion of SooToday.com. Keep discussions civil and on topic. Refrain from obscenity and don't post anything that your grandmother would be ashamed to read. Those who do not abide by these guidelines will have their membership revoked without notice. If you see an abusive post, please click the link beside the post to report it.
right wing 2/10/2014 8:23:08 PM Report

Great question.
Now find out. There is always a paper trail.
I'm In 2/10/2014 8:37:09 PM Report

The report was buried cause Harper wants to privatize it so his friends can run the banking @ CPC and hire people for minimum wage, this is the way Canada is going, I feel sorry for the younger generation they will work for nothing, you working poor/middle class keep voting PC and that's what you'll get.
Greeky3 2/10/2014 9:07:31 PM Report

Follow the money trail!!
Vicci 2/10/2014 9:22:17 PM Report

I think it’s quite clear that Nigel Wright stopped the report and buried it without any direction or knowledge from the Prime Minister or any Conservative MP’s.
zardoz 2/10/2014 9:30:49 PM Report

The Postal Service needs a revue from the top on down. The treatment of employees is horrendous, being witness to the absolute stupidity being carried out by the latest round of new Management decisions things are only being modified to fail, to hurt service, to hurt customers and to physically hurt their own employees.

The Postal Service used to be a proud service, and is slowly being "Managed into a shamble"
Koolaid 2/10/2014 9:51:18 PM Report

Because our government is ran by corporations.
OrganicGuy 2/10/2014 10:03:46 PM Report

its really up to the people to bring this report front and center and let accountability be the topic. Currently our govt' talks accountability but fails on most everything!
harry dick 2/10/2014 10:25:41 PM Report

I do not know how the United States Postal Service runs their system , but this U.S. corporation is working very well. I buy a lot of things on-line and most of it is shipped by the U.S.P.S .They have different size pre-paid boxes for a low price . It doesn't matter what goes in the box or how heavy it is , it ships for the same price. WHY CAN'T WE LOOK AT THEIR SYSTEM FOR IDEAS .The U.S.A. has 300 million people and we only has 35 million people. If they can make their postal service work , then we should be able to , also.
eug22 2/10/2014 10:53:32 PM Report

.....and now you know why teachers were striking last year. The govt will so do what they want...now poor people will be without jobs...what's next!
soowat 2/10/2014 11:17:39 PM Report

harry dick

US postal service had a 16 billion dollar deficit in 2012 Might want to think twice about emulating them
macgyvr 2/10/2014 11:24:55 PM Report

Wasn't the U.S.Postal service making money up to a few years ago? What happened all of a sudden? Was the Canadian Government involved in this deal?
willoweep 2/11/2014 1:00:02 AM Report

The amount of Money wasted on stupidity is mind boggling.

Like ordering all new Brass Master Padlocks for Unit (apts) etc mail slots at a cost of which across the Country was several hundred thousand dollars .

Only they didn't fit !

You would almost start to think certain interest groups want the Postal Service as we know it gone.

And when our Letter Carriers are not even given the courtesy of prior knowledge of the announcement ,till the end of the day when there is a memo ,Go to Canada Post website for information.

I have seen People saying they are overpaid and don't need any education to be a Letter Carrier anyone could do it.

Really FIRST of all you can not have a record ,so that leaves a lot of you out,and I would dearly love to see some of you walk for several Miles everyday when it's -20 ,or how about all those Blizzard days when you stayed in cause it was so nasty outside?.

Some of you People are totally clueless.
HowAbooutSomeLogic 2/11/2014 8:03:20 AM Report

Only gov't bureaucrats would 'need' a four yr study to determine that getting into banking can make any business profitable. IT'S FREE MONEY!

Koolaid gets it. How can you possibly be a free people when you have private companies controlling the supply and value of your currency?

OT: You guys understand that when you put your money in any of the big banks you are an unsecured creditor, right? That money is no longer yours and Flaherty has explicitly stated banks should 'haircut' (take a %age of) their accounts if they get in trouble....so as not to require a full bailout.
HowAbooutSomeLogic 2/11/2014 8:05:32 AM Report

Willow, they're not clueless.

You really think it is such a physically demanding and technically skilled job that millions of Canadians are not qualified? That's ignorance, my friend.
GoHoundsGo 2/11/2014 8:35:42 AM Report

This is the trend of all level of gov'ts, privatize privatize privatize. The conservatives a particularly big on it. A practice that puts more of your tax dollars into the hands of wealthy corporations/friends is exactly what they want. As we continue to privatize Corporations who by law are considered "people",control our gov't, the laws they pass, the regulations they make, and tax policy only to suit them, the corporations. Today we found out that the CEO of GM earns over 14 million dollars a year, half of which are stock options. She earns more per year the 1/6 of GM's employed work force COMBINED !!! For what? If she makes a bad decision and costs the company and shareholders money, and employees their jobs and gets fired she walks away with millions in compensation. The right would have you believe that a free market and capitalism are great and its what made Canada and the western societies great, well thats true...true capitalism and a true free market does, but what its morphed into doesn't. The rich get richer and the poor get poorer. Income disparity is the highest its ever been, 1% of Canadians control 95% of the nations wealth (which is unsustainable), Unions are being destroyed, wages are not growing, jobs are being cut, manufacturing moved to countries where they work for pennies on the dollar...all in the name of profit. The arguement from the right is well that 1% also pays the most taxes, well thats absolutley true, because they have all the money, and the middle class is disappearing. Back in the 50's 60's and 70's, we had a massive middle class, responsible for 85% of the tax base, now the middle class is responsible for only 60% and it continues to drop. The rich pay the most taxes because they have all the money !!! To stop this cycle the right wing must be rid from office, elect a gov't that wants to help create good middle class jobs and careers not destroy them, a gov't that answers to its people not corporate cronies, a gov't that demands corporations be good corporate and enviromental citizens. The right-wing have done their level best to maximize profits for corporations while leaving the middle class by the way side.
OMGWTF 2/11/2014 9:07:23 AM Report

Ask the previous CEO. She's now head of the post in England which, I believe, has banking services
sparks7 2/11/2014 9:42:10 AM Report

howaboutsomelogic

Bank deposits up to $100,000.oo are covered by deposit insurance are they not?
Tills 2/11/2014 9:49:14 AM Report

GohoundsGo hit the nail right on the head..But who do we vote for Liberal,never again.. Pc..crooks! and the NDP well that was a farce when they had provincial power! That is why so many will not vote. The party that will cap profits for large corps. is the one who will have my vote.
willoweep 2/11/2014 10:24:09 AM Report

Howaboutsomelogic perhaps I should have said how many would want the job? And I still maintain you need be in relatively good physical shape.I am not exaggerating, when I say some Carriers do over 10 miles all told ,depending on their route .
People go out count ever step that carrier needs take on his route .even to how mailbox opens etc and that Carrier is expected to finish that route in a certain amount of time with no lee way for snowbanks ,traffic ,ice ,People screaming where the hell is my check???
In any event this is the criteria as Posted by Canada post


To be considered, you need:
Secondary School or provincial equivalent (GED)
A valid permanent provincial Driver’s Licence
A 3 year satisfactory safe driving record (Driver’s abstract)
Experience working with the public
To be able to meet time schedules, carry a satchel loaded up to 15.9 kilos (35 lbs), handle mail items up to 22.7 kilos (50 lbs), walk and climb stairs to deliver mail in all kinds of weather and traffic conditions for long periods of time
Proficiency in maintaining records, preparing routine reports, organizing material
Exceptional customer service skills
To pass pre-employment assessments including interview, security screening, physical abilities assessment, and a vision and road assessment
To successfully complete a training program and pass training tests

Again how many would want this job sounds way too much like work for many .
HowAbooutSomeLogic 2/11/2014 10:30:27 AM Report

Absolutely correct, sparks and I should have mentioned that...but you're still technically an unsecured creditor and the risk is this:

envision a situation in which the gov't has to make good on that $100,000 guarantee.

IMO it would only be relevant in the event of a systemic failure where everyone gets bailed out and at that point very few people will see any of it because there just isn't enough to make good on all those promises.
learningaswego 2/11/2014 10:31:45 AM Report

Yes, people would be rushing to give their money to a bank run by Canada Post, I'm sure.
(sarcasm button at maximum)
HowAbooutSomeLogic 2/11/2014 10:31:52 AM Report

It's a pretty radical idea, I think, to allow banks to 'bank' all their profits privately and then socialize losses (through those guarantees or bailouts) in the event of a failure.
sparks7 2/11/2014 10:57:07 AM Report

howaboutsomelogic

Yes I have had the same thoughts.If the shit ever did hit the fan to that degree them guarantees probably wouldn't be worth much.I am pretty sure The US fed reneged on their bonds in the in the 1890's or early 1900's so that scenario is not unprecedented.

With regard to banks,banking their profits ans socializing their losses,,,well wasn't that what T.A.R.P was all about?
atoz 2/11/2014 11:05:15 AM Report

As far as the government goes, it all leads back to the giant head somewhere. Its all imaginairy money anyways, just like any sort of insurances. Your usually paying for nothing....lol
sparks7 2/11/2014 11:05:32 AM Report

and not ans ..sorry
Comments
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Note: Comments that appear on the site are not the opinion of SooToday.com. Keep discussions civil and on topic. Refrain from obscenity and don't post anything that your grandmother would be ashamed to read. Those who do not abide by these guidelines will have their membership revoked without notice. If you see an abusive post, please click the link beside the post to report it.
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