Canada Post is an organization in transition and evolving into something different.

And it isn't easy. For years, Canada Post has had a monopoly on mail delivery.

However, with the advent of technology, individuals and organizations have a variety

of ways of sending and receiving "mail."

As a Crown corporation with a new CEO, the primary challenge appears to be in

employees $($and their unions$)$ understanding that the organization has an opportunity

to create its own future. Deepak Chopra, CEO, states, $"$We have an opportunity to

create the right conditions from a cost structure, work flexibility and pension

perspective to free$-$up some cash to invest $..."$ Among Canada Post's financial issues is

a home mail delivery decrease of $17\%$ and an almost $$5$ billion annual pension deficit.

Further, in $2011,$ Canada Post had a $$253$ million loss in revenue$-$the first loss

in $16$ years.

Even though there are $200,000$ new homes built in Canada each year, Canada

Post still has to plan for mail delivery whether mail is available for delivery or not. And

in terms of any HR planning, it is important to remember that many employees retire

at $55$ with more than $25$ years of service and that without the revenues it used to enjoy,

Canada Post can no longer provide high wages with high retirement benefits.

One business model being considered is for Canada Post to allow itself to become

a place where people can get their mail digitally. By becoming a secure Web site,

Canada Post could allow people to get their bills in one place instead of having to

access $20$ or $30$ different Web sites to download their bills. Since Canadians are heavy

users of technology, it makes sense that people could access one site instead of having

to go to multiple sites.

Another area of growth for Canada Post is its parcel delivery. In order to achieve

efficiencies, it is moving to hand$-$held devices for delivery purposes and working with

Canada Customs to streamline clearances at border crossings. This is an area where

there is heavy competition, but currently Canada Post has $90\%$ of the delivery market

for eBay purchases in Canada$-$strong performance with the ability to build upon its

successes.

All of the above is being supported by the "Postal Transformation" project that is

modernizing Canada Post's physical and electronic network. Even though it is highly

automated already, new state$-$of$-$the$-$art equipment will allow it to sort and deliver

mail more quickly. In addition to its physical plant, dollars are being invested in the

technology so that all electronic networks can be fully enhanced. These changes will

provide the platform for Canada Post to realize its business objectives.

Sources: Adapted from Steve Ladurantaye, "A seismic shift from paper to pixels," The Globe and

Mail, April $14,2012,$ B$3$; "Postal Transformation at Canada Post," Canada Post, www$.$canadapost.

$c\frac{a}{c}p\frac{o}{m}\frac{c}{?}$ aboutus$/$corporate$/$postaltransformation$/$default$.$jsf $($accessed April $23,2012)$; and Barrie

McKenna, "Canada Post in the red for first time in $16$ years," Report on Business, May $2,2012,$ B$1.$

Questions

What are the opportunities and threats for Canada Post as it transforms itself?

What HRM issues arise at Canada Post with these changes?

What are the HR implications if Canada Post does not make changes?