Canada Post and Air Canada.. Dumb and Dumber

Well.

So Canada Post and Air Canada employees want to flex their collective union muscle, do they?

One might have thought that after the recent meltdown of the auto industry, to a great extent credited to overly generous union settlements, particularly regarding health care and retirement benefits, there might have been a greater understanding respecting the need for the employer to prosper before the employees can ask for a greater share of the pie.

But, I guess not.

For those Air Canada employees clamouring to man the the picket lines, here's a sobering look at the company you think is getting too "fat" at your expense.

While the last year profit was some $107 million, looked at over the past 5 years, we see a much less rosy picture:

So, what does this tell us?

Well, over the last 6 years, Air Canada has managed to suffer an average annual loss of $197 million.

On average, it's owners have lost $197 million each year for the past 6 years.

So.  One might consider that maybe, just maybe, the employees of Air Canada might consider it to be quite a miracle that they have any jobs at all.

What is in issue with Air Canada?  Pensions.  Defined Benefit Pensions.

The union won't let go of them - which were, to a great extent, the giant killers of GMC and Chrysler.  Pension plans that guarantee a level of income post-retirement - and when return on investment goes down, the cost to the employer becomes astronomic. 

So.  the CAW (we'll call them "Dumb") , wants to go out on strike over this issue - which is fine - but the net result is, yet again, travellers are being told that while your tickets with Air Canada may not be in immediate jeopardy due to impending bankruptcy (see creditor protection applications by Air Canada in April 2003 and September 2004), they may be at jeopardy due to striking employees. 

Which, eventually, leads to reduced consumer confidence in the company and, in turn, lower profits, and, in turn, worse conditions for the employees.  As it is, I routinely decline flights on Air Canada out of principal - because I refuse to support a corporation which, over and over, is given government support and handouts, while competition (see WestJet) is required to succeed on their own merits.

What about Dumber?  (The Canadian Union of Postal Workers)

While it is true that over the last decade Canada Post has been operated in a much more business-like manner than Air Canada, showing consistent profit through that period - to a great extent that has been due to a marked attention to the bottom line and to controlling costs in particular.

The management of Canada Post appears keenly aware of how changing technology has impacted their business, in particular, a significant drop in volume over the past year.  The bottom line is that, as a business, it doesn't require the same level of employees that it has in years gone by. 

How many of your bills now come to you via email?  Over the last year alone, half of my bills are now received digitally.  That is not going to change - it's only going to increase with the massive shift in the demographic of those using e-commerce.

Canada Post is getting smarter while CUPW is getting dumber.  They demand that wages stay high for new hires and ignore the clear and obvious change in consumer demand that reduces the need for the number of employees used in the past.

So.

Just today I shifted two more of my bills to be received by email.

And guess what.

They won't be going back to regular mail.  Ever.

And I'm thinking this week, I'm not the only one.  Think about that Dumber.