Postal Dispute Resolution Ends Damaging Uncertainty

Postal Dispute Resolution Ends Damaging Uncertainty

The Canadian Marketing Association (CMA) welcomes yesterday’s tentative agreement which ends months of uncertainty surrounding postal service in Canada. This agreement demonstrates that the Union and Corporation can achieve positive results through the collective bargaining process.

Doug Brooks, President & CEO of the Canadian Marketing Association, noted that most importantly for the marketing community is that “the resolution ends ongoing uncertainty surrounding this important piece of Canada’s economic infrastructure that businesses rely upon every day, and which continues to be an integral part of the marketing mix.”

Canada Post noted that the two-year agreement, which is shorter than usual, will allow the parties to grapple with some of the key issues affecting the sustainability of the postal service. Related to that challenge, CMA made a submission to the federal government’s Canada Post Review Task Force in June 2016 that highlighted a number of priority areas:

  1. A Universal Postal Service with Comprehensive Coverage
    When it comes to postal services, a core value for marketers is the availability of reliable and affordable service to all parts of the country. Marketers need to know that their direct mail offers will reach consumers on schedule, ensuring effective co-ordination with parallel marketing initiatives occurring through other channels. Reliability is equally important on the fulfillment end, including parcel delivery.

  2. Efficient and Reliable Service and Pricing
    Marketers value efficient, reliable mail delivery to every household in Canada – that is a priority. Whether via door-to-door or community mailboxes, lobby lockboxes, or mailboxes at the end of a driveway, the most important thing to marketers is reliability in having mail delivered on time. On pricing, CMA underlined that Canada Post must give customers reasonable notice of price increases so they can budget. Further, any non-business initiatives that may be mandated by government should be paid for separately, and not be rolled into postage rates.

  3. Efficient and Reliable Delivery
    CMA understands that the average annual cost per address to deliver door-to-door is over double the cost per address to deliver to community mailboxes. CMA therefore recognizes that there is significant financial benefit to delivering mail to centralized mailboxes, and believes that Canada Post is best able to identify the optimal form of delivery. The option of alternate-day delivery, however, would create logistical challenges and detract from the consistent universal coverage that marketers rely on to grow their businesses and create jobs.

Tags: Postal Matters