Postal Banking – Why is it an Issue in this Round of Bargaining?

There are many issues our CUPW negotiators have put on the bargaining table with Canada Post.

One of these issues is that Canada Post implement postal banking. Many of you have asked what post banking has to do with negotiations. This bulletin will provide some answers.

Postal Banking will bring Revenue to Canada Post

Across the globe, postal banking has resulted in increased profits to post offices. If Canada Post had postal banking, the profits could further secure our pension plan, and help protect five days a week, door-to-door delivery.

Canada Post keeps on saying they don’t have enough profits to treat postal workers with dignity. Postal banking would close the door on that argument.

In 2011, Canada Post agreed to a committee to discuss and implement a pilot project on postal banking. But.....

In the 2011 round of bargaining between CUPW and Canada Post, there was an agreement to discuss and implement a pilot project on postal banking. But, once the back to work legislation was announced, Canada Post withdrew their agreement on this issue. If they agreed in 2011, why won’t Canada Post agree in 2016?

Canada Post’s OWN study found that postal banking was a win-win situation

Canada Post conducted a secret four-year study on postal banking that indicates that adding this service "would be a win-win strategy" for the corporation. This study was obtained through an Access to Information (ATI) request. Unfortunately, 701 of the study's 811 pages were crossed out. CUPW has asked Canada Post's President to release the full report, but so far Deepak Chopra has refused.

Postal banking has public support

A May 2013 survey showed that nearly two-thirds (63%) of Canadians, “supported Canada Post expanding revenue generating services, including financial services like bill payments, insurance and banking”.

Postal banking would provide an alternative to pay day lenders

Pay day lenders are charging outrageous amounts of interest. A recent article found pay day lenders are charging annual interest rates from 442 per cent to 650 per cent to poor and vulnerable people. A postal bank would charge far less.

The revenue postal banking brings in will help Canada Post to expand and improve services

The profits brought in by postal banking could help Canada Post to improve and expand postal services.

Canada Post says they want to be innovative and follow global postal trends

Canada Post’s own annual report says they want to follow global postal trends. But, the trends they want to follow are those of cutbacks and rollbacks. They are ignoring the fact that postal banking is profitable in most countries around the world.

Postal banking exists in India, Japan, Burkina Faso, New Zealand, Italy, Switzerland, England, Brazil, and many more countries. In the past three months, both Portugal and Russia have opened postal banks.

Postal banking is good for postal workers, good for the Post office, and good for the community

Postal banking is one of many ways to secure the future of Canada Post and our jobs. Around the world postal banking has been very profitable. Postal banking serves people who are unbanked or under banked.

So why won’t Canada Post negotiate postal banking at the bargaining table?

In Solidarity,
Jennifer Savage