tone-deaf comment provoked an all-too predictable firestorm of controversy from seniors groups and local and federal opposi- tion politicians. Despite being shielded by a large public relations team, the corporation and Chopra just can’t avoid controversy. Canada Post’s inability to cope with the ice storm and power outage in December 2013 that crippled much of Toronto forced it to apologize for failing to notify customers of delivery delays over a three-week period. It also exposed poor morale at the corpora- tion. Rather than rising to the challenge of rain, sleet and snow, many of Canada Post’s full-time and relief workers took leaves of absence during the storm and power blackout, worsening its response. The CEO did not comment during the troubles in Toronto and later trotted out spokesman Jon Hamilton to deal with the Toronto Star. “We should have notified those custom- ers, and that’s why we’re apologizing completely.” He was asked by the newspaper whether the apology included the “embat- tled” Canada Post boss: “Yes, Chopra, and all of Canada Post.” Soft-spoken, with a wry sense of humour, the Indian-born accountant and former head of Pitney Bowes Canada and Latin America has proved to be a lightning rod for controversy and invective, partly because of his own actions and partly due to strategic changes. He is assuredly the first boss of the post office that average Canadians know by name — although they may confuse him with his more famous namesake, the New Age spiritual guru. Aside from his unwanted high profile due to the changes he is implementing at the Crown corporation, the married father of two university-aged children is hard to find outside the walls of Canada Post: he sits on just a few outside boards and shuns the limelight. Easy to do when living in bureaucratic Ottawa. “He is very unassuming, but he is very enthusiastic about the
job that he has,” says Jerry Tomberlin, dean of the Sprott School of Business in Ottawa, who counts Chopra as a member of his advisory board. “[Canada Post] has obligations that most busi- nesses don’t have and it is faced with a huge disruptive change in the industry. Throw all that together and you have a huge challenge, but he is really relishing it.” Tomberlin applauds the postal CEO for the hard and necessary decisions he has taken. Whether he is working in Ottawa or, nearly as often, in
Toronto, there doesn’t seem to be much downtime for the postal chief. “This is a pretty demanding job, and I take a lot of pride in spending time to meet with our employees and do talent development and so on. It doesn’t leave a lot of time for what I call discretionary time. If there is downtime, I try to spend it with the family and watch a movie or two.” A history buff, Chopra makes mention of the fact that he is
running a 250-year-old institution that, like the railroads and telephone companies, is being forced to deal with broad social and technological change on the fly. He appears to have the patient temperament to initiate the open heart surgery on
Canada Post that’s necessary to keep the corporation alive, although he lacks the slick salesmanship that might persuade the union and seniors to endorse his cuts and changes. It is never mentioned by the media or the corporation’s critics, but in some ways Chopra was dealt a lousy hand when he took over as CEO. The corporation was in the midst of sinking $2 billion into state-of-the-art mail sorting equipment near the peak of its mail volumes — not anticipating the iPad and other technologi- cal bottom-line torpedoes to come — and its pension plan shortfall was ballooning to the $6.3 billion it stands at today. Michael Warren, a former Canada Post CEO who has long
called for the corporation to be privatized, is sympathetic. “The government has really missed the opportunity because four or five years ago it was profitable and had very little debt and was a going concern. Today it has an enormous amount of debt and is struggling for profitability.” Recent quarterly profits for Canada Post in mid-2014 were no surprise to Warren given price hikes and staff cuts. “If you put up your prices, reduce your service, you are bound for a short period of time to realize some profit.” He is pessimistic about a turnaround. “It is a situation that will look all right for a year or two and then Canada Post will again be back to the fundamental problems.” (Chopra predicts “sus- tainable profitability” will not occur until 2018-2019.) Warren is most worried about the impact of that iceberg-sized pension shortfall. The pension plan is hammered by the increased longevity and low interest rate environment that other defined benefit plans face, as well as an aging workforce and a fully indexed benefit scheme. Call it the perfect pension storm. Chopra has started working with the union “trying to figure out a long-term sustainable solution. That is an issue that is front and centre in our conversations.” Given the scary math that threatens Canada Post’s existence,
Chopra has found his accounting background to be an essential part of his skill set. “It becomes part of your DNA, it is who you are. It has to be your second nature to constantly look at the financial side of your decisions, which continues to be the back- bone of your decisions. Absolutely, you use every single aspect of your training and I’m pretty proud of that.” Now in the final 11 months of his five-year term, Chopra is
coy about whether he will stay or go in 2016, when the path to profitability will be only half complete. “I have always believed that institutions are bigger than individuals,” he says, stressing that he is just one of many steering the 66,000-employee enter- prise. “If the board of directors wishes me to carry on the mission, I will carry on the mission.” Even if he leaves next year, he’s confident the hard work —
and hard feelings — are mostly behind the organization. “The institution is so strong and so great, with the talent, that the change will continue whether I am here or not.”
PAUL BRENT is a freelance writer based in Toronto MARCH 2015 | CPA MAGAZINE | 31
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