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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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