Retail Innovation and Retail Jobs: A Union Perspective

Transcription

1 Canadian Union of Postal Workers Retail Innovation and Retail Jobs: A Union Perspective Presentation To The 5 th International Petersberg Conference on the Future of Postal Outlets Königswinter, Germany June 13-14, 2007 John Macdonald Research Specialist Lynne Pajot Research Specialist Cindi Foreman National Union Representative

2 Canada and Europe Population: Area: Density: % Urban Population: % Rural Population: 30 million 10 million km sq 3 people per km sq 78 % 22 %

3 Canada Post Corporation State enterprise Exclusive privilege for letter mail under 500 gm Universal Service Obligation Delivers 11.4 billion pieces of mail per year to 14 million addresses 3.8 billion annual revenue 12 consecutive years of profit 65,000 employees; 55,000 represented by CUPW 3rd lowest postage rate among the industrialized countries (52 or 0.35) Major operator in rural areas Competes in the courier and parcel market

4 The Retail Network The largest retail network in the country 4,024 corporate outlets 2,573 franchise outlets 17,000 stamp shops 870 million annual revenue (23% of total revenue)

5 The Retail Network 9,000 employees 6,000 full-time 3,000 part-time 78% women 7,000 in rural areas 2,000 in urban areas 373,000 transactions per day 7.80 average sale 52% of the corporate outlets are located in rural areas and account for 17% of retail revenue

6 Distribution of Retail Revenue 52% Retail revenue is 870 million per year 23% of the total corporate revenues 7% Transaction mail Philatelic Products 30% 4% 4% 3% Services Parcels Direct mail

7 Number of Corporate versus Franchise Outlets : Corporate Franchise

8 Expansion Contraction of Retail Services Contraction Up to 1982 Basic services Corporate Network 1983 Canada Post plans to open franchises Plans to close corporate outlets, opens franchises Saturday closing Post office closures and commercial only service 2005-present Back to Basics closures, focus on larger volume mailers Union fights closures and franchises 1994 Moratorium on closures retail projects negotiated Expansion Union negotiates New Direction Outlets reopening of commercial outlets, small expansion into new services new projects extended hours, more products passports, money wiring

9 Role of Retail Outlets Enable economic activity Economic Bring reliable retail activity and stable jobs into neighbourhoods and communities, especially in rural and isolated areas Social Provide essential communication between people and communities Provide a meeting place for social contact, information and community services Political Provide access to a universal, affordable, secure communications service that benefits everyone Provide a national government presence that is especially important in rural areas

10 Quality: Corporate versus Franchise Outlets Corporate Outlets Provide high quality service High transaction value Handle complex transactions and business needs Assure security and safety of mail Staffed by knowledgeable, experienced employees with public service motivation Ensure corporate compliance with public policies (ie. official languages, money laundering) Franchise Error prone Fewer services High employee turnover (low wage, part time work) Less secure mail Loss of corporate identity (partnership with large chains and less stable small stores) Less compliance with public policies

11 Another retail future is possible Between 2000 to 2003 the union and management tested 15 innovative projects 33.5 new jobs new net revenues in one year of evaluation

12 Drive-through Distinctive features: First drive-through postal service Outreach to Chinese community Jobs created: 2 Net contribution: in 12 months

13 Inside a Grocery Store Distinctive feature: Located in a large supermarket Extended hours Jobs created: 4.5 Net contribution: 4,887 over 12 months

14 Kiosk in Large Mall Distinctive feature: Kiosk inside Canada s largest mall Jobs created: 4 Net contribution: - 47,344 over 16 months

15 Big Box Retail Area Distinctive feature: Amalgamation of two smaller post offices to new location in Big Box retail area Jobs created: 2 Net contribution: 17,540

16 Inside a Business Park Distinctive features: Using delivery force to drive revenues at retail Customer contact Jobs created: 2 Net contribution: 58,666

17 Co-located with Letter Carriers Distinctive feature: New post office in growing commercial / light industrial area Jobs created: 4 Net contribution: 127,548

18 Lessons Learned Retail innovation can generate new revenue and good jobs The Corporation must maintain and roll out successful innovation Union uses collective bargaining to push retail innovation when corporate will is lacking Union involvement brings members knowledge and experience to the projects Union participation ensures that the projects address the economic, social and political roles of the post office, as well as financial and employment objectives

19 What s next? The union and management will test 7 retail projects under the new collective agreement, : 2 corporate outlets will be re-located to increase the direct mail business 3 corporate outlets will be opened to attract small business and admail 2 corporate outlets will test pack and wrap services (1 each in Toronto and Calgary) Employee training Additionally, the Union would like to test the following: new products, i.e. heritage, cultural, environmental, fair trade new services, i.e. government, library, local community promotions

20 We will give you a progress report next year!! Thank You Merci Vielen Dank Canadian Union of Postal Workers