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UPS NAFTA
Suit: Public postal service under siege
By Greg McMaster, CUPW
As workers we are usually preoccupied with immediate workplace and
union-management issues and there are always enough of them to keep us busy,
whether it’s health and safety, job security, wages or benefits. Post Office
workers still face challenges from technological change and new systems in
processing and delivery of mail; on the other hand, we are looking at increases
in full time jobs resulting both from improvements in our collective agreement,
and also projected increases in the parcel business with e-commerce and other
delivery initiatives.
However, our issues are always played out in the context of the broader
society we live in. That’s one practical reason for union involvement in
broader social issues, to fight against cheap labour and discrimination that
undermine the position of every worker. Political action, international
solidarity and human rights are therefore important areas for unions. Alberta
politics has already affected us through the deregulation of electricity and
gas, and the cuts to health care. That’s why unions were in the forefront of
the protests against Bill 11, through the Alberta Federation of Labour, and also
in the election campaigns of labour-friendly candidates.
National and international issues also affect us. Under NAFTA, the North
American Free Trade Agreement, US-based United Parcel Service are suing Canada
over the supposedly-unfair competitive advantage of Canada Post. The monopoly on
first-class letters and the Corporation’s infrastructure (postal stations,
vehicles, boxes, mailrooms, and workforce) are the target of this $230 million
lawsuit, and the prospect of increased jobs and service for Canada Post’s
parcel business is under threat, either by a ruling from a closed-door NAFTA
tribunal, or concessions by the government to cut their liability.
UPS wants access to Canada Post’s network of mailboxes and offices to
increase its share of profitable urban markets. The government could grant UPS
the access it wants, or could order Canada Post out of competitive services (as
the private courier industry clamoured for during the 1996 Review of the CPC
Mandate).
But if UPS increases its already lucrative share of urban markets by
piggybacking on our public post office, or if Canada Post is not allowed to
offer parcel and courier services, there will be less money left over for
universal public postal service. Revenue from CPC’s urban services allows for
service to the rest of the country, but UPS is not interested in providing
service in rural communities because it costs too much.
If Canada Post is ordered out of the courier business, service to rural areas
will suffer and a lot of jobs will be at stake. Both the UPS complaint and the
threat to postal service should be discussed in the open, not behind the closed
doors of a NAFTA tribunal. As it stands now, the public and other groups are
prohibited from participating in or even knowing the details of a NAFTA
investor-state claim, even if a claim effects an important public service like
Canada Post.
If UPS gains access to Canada Post’s infrastructure, similar complaints
targeting other public services will follow. For example, publicly-funded health
care services and infrastructure that compete with private providers could be
vulnerable to a NAFTA complaint by a US-based health care company claiming
damages if it was denied access to public hospital facilities for delivering
for-profit health care services.
Labour campaigns continue against the UPS NAFTA lawsuit, and the defence of
public services generally. Resolutions on the UPS NAFTA challenge will be under
discussion for adoption and action at the upcoming May convention of the Alberta
Federation of Labour. The Council of Canadians and CUPW have mounted a
"Hands Off My Mail" postcard campaign against UPS.
Now is the time for Canadians to tell UPS that public postal service is too
important to be undermined by a courier company that puts profits before
service.
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