With regards to external competitiveness, Canada Post operates as a government controlled monopoly. There are private organizations that deliver similar services in parcel delivery such as Purolator and Fedex. Canada Post offers similar base pay compared to other alternative competitors. Rural carriers earn less than these competitors as they are only given hours based on the quantity of mail in rural area which private competitors do not frequent. It is important to consider, while these are alternative organizations, duties associated between these competitors vary between Canada Post because they are not direct competitors. The main difference between Canada Post and their alternative competitors is the benefits offered as negotiated by …show more content…
Mail workers from external organizations do not receive the benefit of a defined pension plan. The new standard for pensions has moved to contribution based pension plans. If Canada Post intends to follow this trend, they will need to prove that this decision was reached fairly by proving the costs of the defined pension plan is unaffordable given the economic climate of low interest rates. However, Canada Post’s workers do not experience procedural justice as the CUPW argues that the defined pension plan will develop a surplus once interest rates rise and would continue to remain solvent afterwards. The CUPW’s argues that the defined plan will rebound in the near future “CPC spokespeople are always talking about the deficit in the Canada Post Pension Plan. But they never mention that the plan also has a huge surplus. And while the surplus is growing, the deficit is decreasing… there is no reason to believe the plan will be terminated. Solvency deficits are caused by low long term interest rates. Should (or when) interest rates go up by only 1%, the solvency issue will disappear entirely” The methods Canada Post used to propose a change the pension plan was considered unfair by the CUPW and the temporary solvency problems of the plan is only
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
I have never had a strong opinion on monopolies in Canada. However, I believe that monopolies can stifle innovation, competition, and affect the prices that the consumer has to pay for a product or service. Since we live in a mixed market economy, Canada has very few monopolies such as the health, airspace, and telecommunications industries. Companies within theses industries are notorious for price fixing, lack of innovation, and competition. These problems are prevalent because of the barriers to entry the new players face such government regulation, the cost of doing business, and infrastructure.
Clements, B. J. (2014). Equitable and sustainable pensions: challenges and experience. Washington, D.C.: International Monetary Fund.
Kelly A. Olsen, Social security privatization and Generation X, The Washington Quarterly 22:1 pp 189-204 Copyright 1999
The Social Security Act was enacted in 1935, and since then it has undergone numerous revisions and amendments. Today the act covers a wide range of benefit programs, including Medicare, unemployment compensation, and Supplemental Security Income. The major portion for which the Social Security Act has become known, however, is the Old Age, Survivors, and Disability Insurance program, or OASDI. While today the OASDI program is most frequently referred to as “Social Security,” it is only a thread in what has been called the “social safety net.” Therefore, throughout this paper, it should be understood that Social Security will be the term used to refer to all its encompassed programs as a group, as a matter of convenience.
Canada Post is one of the largest Crown Corporations. In this report, we have to determine the organization structure and objectives of the Canada Post followed by the audience and market segment being targeted by the organization along with identifying the key success factors and the type of dealings the organization has with the government. With the worldwide growth of Ecommerce Sales, the demand for residential delivery is also increasing thus, Canada Post is operating as primary postal operator all over Canada headquarter in Ontario offering a full range of delivery and fulfillment services to customers. This paper will emphasis on the current environment and capabilities of Canada Post necessary to evaluate its position
FedEx’s modeling capability gave them a competitive advantage as they implemented new methods and technology. They currently have a SuperHub with several regional hubs and packages are managed and tracked by a system called COSMOS. This system allowed customers to know where their packages were at all times and was later integrated for web use, allowing customers to track packages over the Internet. Today, UPS also allows customers to track packages over the Internet and has improved customer service. I would assume that they have developed a mainframe similar to that of FedEx to decrease FedEx’s competitive advantage. The United States Postal Service, which has lower rates, has also increased their customer service and quality. FedEx must find new technological advancements to stay ahead of the competition in the package delivery industry.
The Canadian Social Security system is broken down into three levels: Old Age Security (OAS), The Canada Pension Plan (CPP), and the private pension/savings. The first level (OAS) provides citizens that meet certain residence requirements with a modest monthly pension once they reach the retirement age of 65 (Totrov, 2014). Under the Canadian Social Security system, all citizens that meet the retirement age automatically receive retirement benefit. OAS is fina...
...s for generations to come, which in essence, needs to start now. Using a conservative economic projection should be one of the steps taken for the growth of future social security. We all know there are no free rides in life; someone is always taking the bill, much less in social security. Any of the changes discussed in this report would impose a real alteration in the level of benefits, taxation and risks. Ultimately, we need to look forward with complete understanding and full acceptance of changes, while keeping faith in a system, which has served us so well.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
Wide market - They covers a large market in whole Canada domestically and as well as they cover international market as well.
The current pension plan which BTH provides to its employees are defined benefits pension plan. Defined benefits pension plan is an employer-sponsored retirement plan where employee benefits are sorted out based on a formula using factors such as salary history or duration of employment. The employer bears investment risk and controls portfolio management. The employer will need to dip into the company’s earnings when the returns from the investments devoted to funding the employee’s retirement result in a shortfall.
retirees, it must not be mistaken as a financial entity on which people can live
Retirement comes early for most people. Early meaning that we are not ready for what comes with it. Most people would love to retire today, but unfortunately it is nearly impossible. It takes a lifetime for a person to become financial stable and adequately equip with assets that have been gained throughout someone’s life. Everyone must start young, in fact the sooner the better. Any money, or savings that can be applied today will always come with an enhanced future. So is it worth it to work harder and save now in order to possibly access a pleasant retirement? With out effort now we will be dependent on other sources in our retirement years, sources that may not come through for everyone who needs it. There are three ways to help Americans be better prepared now. These methods include saving money now, and investing in sources with returns. Do not become one of the millions of Americans who fall into government assisted retirement plans by lack of preparation and planning.
The 2004 Report of the Social Security Trustees is in; but the jury is still out ýarguing the findings of the report. Agree or not, the masses have a good idea of ýthe final ruling and they all agree that the current state of the social security ýsystem has suffered, for a very long time, from an ongoing deficit problem that ýwill continue to grow unless immediate steps are taken to address the problem. ýPeople, on both sides of the fence, argue in support or against the president’s ýproposed plan to save the Social Security system. Yet, they all concede and ýacknowledge that in reality a problem does exist; and unless calculated ýmeasures are taken, this problem cannot be controlled and will snow ball the ýSocial Security System into bankruptcy.ý