Charles Lewis: Ottawa seizes defeat from jaws of postal victory

Many Canadians were impressed with Stephen Harper’s handling of the recent disruptions at Canada Post. He got tough on unionized labour and showed them what’s what.

But this decision was a disaster. It saw a conservative government insert itself into the marketplace and at the same time stifle innovation and reform.

By forcing the issue with Canada Post, Mr. Harper has essentially declared that the unionized postal service performs an essential service. He’s almost given the union justification for more labour disruptions in the future.

In effect, Mr. Harper said to Canada Post and its employees: as a country, we can’t do without you.

He also seems to think that the idea of negotiation goes against some free market principle. The union was locked out; they were not on strike. Why didn’t the government use its power or influence to end the lockout? We could have put up with rotating strikes for a while and eventually Canada Post would have sorted itself out with the union. There is either a right to negotiate or there isn’t.

Perhaps a long strike might have set the stage for real alternatives to our unionized postal system and paved the way for real innovation.

Most people can pay bills online. Most everyone has heard of email. Small businesses, at least many of them, could have started online banking relations with their suppliers and customers. Even if they do not do that now, the market would have eventually rushed in to fill the void.

That is what’s supposed to happen when you believe in free enterprise. But sometimes it means suffering some short-term pain for long-term change. Which means sticking to principles.

Why would anyone try to fill that void now, knowing the government would make sure Canada Post has the monopoly because they are seen as an essential service?

The oddest thing about all this is that we’re supposed to living in the age of the Internet. Just look at what the Internet just accomplished in changing the face of the music business. Years ago many complained about the price of record albums and CDs. Then the Internet came along. And eventually companies found a way to sell music online. Essentially, a few entrepreneurs ended up closing a nearly 100-year era of music being bought at retail chains.

This month, HMV sold 121 locations for about $3-million — in essence, giving away the chain for free. So if that’s possible in the music business, imagine what innovation would have come in if a postal strike persisted.

Before the labour disruption began, nearly ever newspaper in the country wrote stories that the importance of Canada Post was withering and a strike would not have the impact it would have had even 10 years ago.

Mr. Harper proved everyone wrong because he doesn’t take his own conservative principles seriously.

Origin
Source: National Post