Businesses upset over poor service and rate increase
Darrell Greer
Northern News Services
Rankin Inlet (Nov 01/00) - Rankin Inlet's business community is tired of the licking Nunavut has been getting from Canada Post the last year.
The latest hike in postal rates has prompted the acting president of the chamber of commerce, Sam Tutanuak, to send a letter to Canada Post.
Tutanuak says the letter points out the community's frustrations with the ongoing rate hikes and the type of service Canada Post is providing in Nunavut.
He adds it's frustrating for local businesses to absorb another postal rate increase -- parcels weighing up to one kilogram now cost $9.85, an increase of 50 cents -- when there's been absolutely no improvement in Canada Post's level of service throughout Kivalliq.
"With Canada Post's attitude I, personally, don't think the letter will accomplish much," says Tutanuak.
"However, we, as a chamber, do feel that when any organization is being looked at, it has to, or at least it should, try and make itself look better."
He says there are problems with the service, including delays, wrong routing and damaged parcels.
"We put up with all these problems with their service and they turn around and increase our rates by 55 per cent in one year.
"Because of these increases, our business community in being put in a difficult situation and employees are having their hours cut, only getting a half-day's work or being laid off."
Tutanuak says the rate increases are especially hard to swallow for people and businesses in a region where they have no choice in using Canada Post services.
He says with no other means of transporting items that require mailing, Kivalliq residents have no choice put to pay the hikes, even when the service doesn't justify the cost increase.
"I'd like them to at least think of that the next time they are considering another rate increase. These rate hikes are putting a tremendous strain on local business and, at the end of the day, those costs are going to be passed on to an already hard-pressed consumer."
Hikes necessary
John Caines, manager of national media relations for Canada Post, says the corporation announced its cost-recovery program for getting items into the North in 1997.
He says Northerners have been getting a bargain for many years on transported items because of the high cost involved.
"We set out a program which will take about four to five years to recover our costs, rather than just going in with one big 100 per cent increase," says Caines.
"I want to be very clear that this is not a cash grab or a revenue generation program by Canada Post. It is cost recovery."
Caines says the chamber's concerns are being heard by Canada Post.
He says the Northern Services Division of Canada Post was put in place in 1989 to improve service North of 60, and Canada Post is continuing in its efforts to improve Northern postal service.
"We've created jobs in the North and hired as many local people as possible to fill these positions to recognize the cultural differences that exist.
"We've come a long way in establishing services the North needs now, as well as services it will require in the future."
