Rugles - 2:32 pm on Nov 16, 2011 (gmt 0)
It's easy to see why they lose money. Just observe the lobby of any post office, and do the math: Clerk behind the counter is probably earning $20/hr plus vacation, health care, and pension. Round it off to 50-cents per minute.
Do you not realize that Canada Post employees get the same amount of wages and benefits? Of course they do.
Here is the actual problem. Americans get too much service for too small a price.
- Sending a 2 pound parcel in Canada with the postal service across the nation is about the same price as using a courier service, in fact often it costs more. Do the same thing in the US and put it in their free box (no free boxes in Canada I might add) and you can do it for less than 5 bucks.
- No Saturday deliveries in Canada
- all new homes over the last 20 years do not get letter delivery to your front door. They put up a large box (like the PO boxes you see in the post office) in the middle of a subdivision and everybody in the nieghbourhood has to go there each day to pick up their own mail.
So Americans are used to a higher level of service at a much lower price. So of course they are running a huge deficit in the US and turning a profit in Canada. Blaming it on employees is unfair IMO.