The head of the Canadian Union of Postal Workers feels he knows how to increase profits at Canada Posts.
Mike Palecek says postal banking would not only increase the company’s bottom line but provide an alternative to major banks and high interest lenders.
“See they’re increasingly using these dodgey cheque-cashing and loan sharking operations that are setting up on every street corner. It doesn’t have to be this way and it isn’t in a lot of countries.”
Palecek says the big banks rake in huge profits every year by gouging Canadians with fees.
He says offering postal banking would provide relief for Canadians who can’t afford the fees as well as offering service to areas the banks say aren’t profitable enough to serve.
While not the norm in Canada, Palecek says postal banking is common in many countries.
He says he’s proposed the idea but Canada Post isn’t interested.
“Increasingly we’re seeing a management team that doesn’t want to innovate, doesn’t want to change their business model. And the only thing they have to offer is cut for their workers and services for the public.”
He says with big banks closing smaller offices, and post offices in every community, Canada Post could step in and serve the needs of Canadians.
