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Canadian Union of Postal Workers (CUPW)

Gas price burden on rural mail carriers; also harms environment

By Gabriela Calugay-Casuga - Rabble, July 4, 2022

The Canadian Union of Postal Workers (CUPW) claims that Canada Post is placing an undue burden on Rural and Suburban Mail Carriers (RSMCs) that is also harming the environment. As Canadians from coast to coast are feeling the pinch at the pumps, RSMCs are paying out of their own pockets to do their delivery routes. RSMC vehicles are left out of Canada Post’s plan to move their fleet to electric, which means that there is no end in sight. 

As the thousands of RSMCs continue to shoulder the burden of gas, they struggle to serve the more than 8,000 routes they cover. In 2021, over six million Canadian residents, or 17.8 per cent of the population, lived in rural areas, according to Statistics Canada. Including relief employees, there are more than 11,000 RSMCs who cover 8,129 routes, according to CUPW National President Jan Simpson. 

Amidst rising gas prices, CUPW members launched a petition urging the government to act on the high gas prices. 

“The members who initiated the petition tell us that the additional cost for gas cuts into their earnings, and that some of them have to consider changing jobs because they can’t afford to keep delivering the mail,” Simpson said in an email to rabble.ca. “It’s an extra burden on top of the costs of maintenance and insurance to keep their own vehicles on the road for work.” 

According to a press release by CUPW, RSMCs are currently compensated for their mileage up to the CRA cap for non-taxable automobile allowances for 2022, which is 61 cents per kilometer up to 5000 kilometers. The release says that this cap was set in December 2021, which means it is based on 2021 inflation figures. 

The tax-exempt per-kilometer allowance limit is reviewed annually against inflation to ensure that it continues to roughly reflect the average costs involved in business driving. Any changes to cost components that arise during a year will typically be reflected in the limit that applies in the following year.

Simpson said that RSMCs collectively drive more than four million kilometers daily. She calculated that at an average consumption of 13 liters per 100km, that would be more than 62,000 liters of fuel used daily.

“This burden does not belong on the individual worker,” Simpson said. 

The large amount of fuel used by RSMCs falls under Canada Post’s Scope 3 emissions, which means they are not considered direct emissions caused by Canada Post. Scope 3 is supposed to be for emissions by contractors and suppliers that Canada Post does not have control over. Simpson said, Canada Post makes the routes, and tracks the distances for compensation. 

CUPW said in their press release that RSMC emissions should be included in Scope 1 which encompasses emissions that Canada Post is directly responsible for. 

Due to the classification of RSMC vehicle emissions, the more than 11,000 RSMCs are left out of Canada Post’s plan to move to electric vehicles. This means Canada Post RSMCs will continue to use tens of thousands of liters of fuel daily. This not only maintains the cost burden on workers, it also means that Canada Post will not truly have net zero greenhouse gas emissions by 2050. 

Simpson said that the burden of responsibility should shift from the worker to the corporation. 

“If Canada Post Corporation were responsible for equipping RSMCs with vehicles and fuel, then the workers wouldn’t have to worry about the cost of the gas they need to do their job,” Simpson said. “It would also bring the RSMCs’ emissions into CPC’s scope 1 emissions, which would increase their incentive to electrify more of the delivery fleet. Or there may be other solutions we could find to make Canada Post responsible for rising fuel costs, which would also increase their incentive to improve fuel economy and emissions.”

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.

Gearing Up for Bargaining, Canadian Union Pushes for a Greener, Better Postal Service

By Derek Seidman - Labor Notes, June 2, 2021

With its contracts expiring in 2022, the Canadian Union of Postal Workers is stepping up the fight for its own vision of the post office of the future.

It’s a model for exactly the kind of Green New Deal campaign that U.S. unions should be launching now for a post-Covid economic recovery.

For several years, CUPW and its allies have proposed a visionary plan called Delivering Community Power. It advances a big but simple idea: take Canada Post, an institution that’s already publicly owned and embedded in communities, and reinvent it to drive a just transition into a post-carbon economy.

The post office would help to jump-start green vehicle production and infrastructure; it would provide free Internet access for all; it would create a nationwide system of public banking. And all these measures would help to shore up and expand the post office as a unionized, community-centered alternative to the proliferation of Amazon delivery vans. (For more detail, see the box at the bottom of this article.)

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