Postal banking services begin in Nova Scotia, Alberta and the US

By Elizabeth Perry - Work and Climate Change Report, October 12, 2021

The Canadian Union of Postal Workers (CUPW) announced that Canada Post will launch postal banking, with pilot sites opening in Nova Scotia in September and in Alberta in October. The goal is to offer the new financial services in over 249 Canada Post locations before the end of 2021. (Financial Services Update #4, July 2021). This brings to fruition an initiative which began with the 2012-2016 collective agreement between CUPW and Canada Post, and its Appendix T: Service Expansion and Innovation and Change Committee. That Appendix secured the right “to establish and monitor pilot projects which will test the viability of the proposals” to expand services, as envisaged in the Delivering Community Power campaign. That larger campaign, which still continues, is meant to green Canada Post, and includes postal banking, conversion of the postal fleet to electric vehicles, provision of electric vehicle charging stations at Canada Post outlets, and more. The test program offers unsecured loans, and will run in collaboration with TD Bank. CUPW continues to work to establish a postal banking service independent of the big banks, as stated in Financial Services Update #5 (Sept. 2021). The arguments for postal banking appear on the CUPW website, and in Why Canada Needs Postal Banking, a research paper published by the Canadian Centre for Policy Alternatives in 2013.

The U.S. Postal Service also launched a pilot project to offer banking services in four cities in September, allowing customers to cash payroll or business checks of up to $500 and have the money put onto a single-use gift card, which the postal service already sold. The back story is described in “USPS begins postal banking pilot” (American Prospect, October 11), and in “Postal Banking Could Become a Reality Even Without Congress. Here’s How” (In these Times, May 2018). As in Canada, the American Postal Workers Union negotiated a Memorandum of Agreement as part of its 2016 collective bargaining agreement, which called for a joint labor/​management task force to consider pilot programs for opportunities to increase revenue – including two specific ideas: ​“modernization of money orders” and “expansion of international money transfers.” The APWU is an important member of the coalition, Campaign for Postal Banking , whose website chronicles the U.S. campaign.

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.