August 31, 2005
(Letter sent to the editor of the Ottawa Citizen. Similar letters were sent to other publications as well.)
I would like to respond to Deborah Bourque's August 30th letter, "Mail carriers shortchanged".
With the largest fleet of vehicles in the country, Canada Post is very aware of the impact rising gas prices are having on the cost of doing business.
Since becoming employees of Canada Post in January 2004, some 6,000 rural contractors have received wage increases, pension, paid vacation and other benefits amounting to an approximate 25 per cent increase.
Under the terms of the collective agreement signed with the Canadian Union of Postal Workers, theses employees are required to provide a vehicle to deliver mail on their assigned routes. Besides receiving an annual salary and benefits, these Rural and Suburban Mail Carriers (RSMCs) receive a non-taxable vehicle allowance to cover expenses like fuel, insurance and maintenance.
The current vehicle allowance is 42-cents per kilometre for the first 5,000 kilometres driven in a year and 36-cents per kilometre driven beyond that 5,000 in a year. Canada Post cannot unilaterally increase the vehicle allowance because any adjustment requires negotiation with the CUPW, and is confined to the limit set by the Canada Revenue Agency beyond which revenue becomes taxable.
Canada Post has been discussing this issue with the union for several months and hopes to reach a resolution soon.
Sincerely,
John Caines
Manager, National Media Relations
Ottawa (613) 734-7675
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