Canada Post reports $233 million profit

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Published: August 15, 2011

Canada Post, which disrupted mail delivery for several weeks earlier this year with a worker lockout, says its mail volumes are declining and earnings last year were down sharply.

Still, the crown corporation’s 2010 annual report tabled with parliamentary officials Aug. 17 said it posted a $233 million profit before taxes last year, a 27 percent decrease but a profit nevertheless.

Canada Post said its business volumes fell by 1.8 percent last year including a 4.5 percent decrease in letter mail.

Meanwhile, operation costs rose $159 million, mainly because of increased liability for future employee benefit costs. “This more than offset the impacts of cost-containment efforts and productivity improvements.”

Canada Post also used its annual report and its website to tout its connection to rural Canada. “Since 2007, we have invested more than $230 million in rural Canada to improve service, to upgrade safety and to fortify security of the mail system in the communities where we live and that we proudly service.”

But that does not mean the government-promoted moratorium on elimination of rural postal service really means no cuts.

Canada Post brags that since 2007, it has maintained delivery “to almost 90 percent of rural mailboxes reviewed.”

But it also warns of an ongoing review of the safety of rural mail deliverers pulling up beside rural mailboxes.

“The safety assessment measures a range of factors which individually or taken together can determine whether delivering to a rural mailbox constitutes an unreasonable risk,” says the Crown corporation. “The assessment criteria are being applied to all rural mailboxes across the country over the next several years.”

It said if mailboxes are deemed unsafe, corporation officials will decide if moving the mailbox is an option or if a free post box at the closest post office is a better alternative.

“Canada Post’s primary objective is to maintain rural mailbox delivery,” says the corporation’s explanation of its rural policy.

There has been no reaction from rural postal carriers or Canada Post customers to the pledge.

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