Lee Valley Tools takes on giant Canada Post

By Allison Chandler

An Ottawa-based business has launched a public campaign against Canada Post courier services, claiming the formula used to calculate the cost of shipping irregularly shaped packages is unfair.

On Jan. 11, 13 and 17, Lee Valley Tools Ltd. placed full-page ads in the Ottawa Citizen explaining their position to the public against Canada Post.

Lee Valley Tools is one of Canada’s largest mail-order companies.

It sells garden and hardware supplies, relying on various courier services to reach its customers

Canada Post uses a formula that combines the size and weight of a package to calculate the shipping price.

The president of Lee Valley Tools, Robin Lee, says the formula is unfair and has no basis in law.

“We aren’t asking for a dime,” says Lee. “We are asking for an honest and ethical process.”

Canada Post bases its prices on something it calls volumetric weight, which assigns a minimum weight to large packages. For example, an empty box that measures a metre on each side would price as if it weighed 166 kilograms.

Lee says this system of measure has not been legalized or defined and can sometimes double the price of shipping.

When asked if the Weights and Measures Act regulates courier-package pricing, Measurement Canada vice-president Gilles Vinet says it is not within their mandate to set prices.

“It’s a decision that should be made by the company,” says Vinet.

When other Centretown businesses were asked about the conflict, few owners knew enough about the issue to comment and most did not want to be quoted.

Bob Martineau, who owns Big Buds, a discount store located on Bank Street, says he receives most of his shipments through Purolator. He says he has not given much thought to the way companies calculate the parcel weight.

“It’s up to me to decide who I want to pick, and if I want to go shopping I can find a cheaper price,” says Martineau.

Lee Valley Tools has also questioned a decision by Measurement Canada to stop certifying tape measures.

QA Courier is located on Laurier Avenue West. General Manager Jack Hansen says the different companies measurement devices has not been a big issue.

“We do not have a fierce opinion one way or another,” says Hansen concerning whether the devices should be certified.

David Lavoie, manager of QA Courier’s parent company, GTM-Canada, located in Verdun, Que., says there are industry standards, but companies do not have to follow them.

“It’s definitely something that should be standardized across the board,” says Lavoie.

According to Lee, many businesses support the actions of Lee Valley Tools. More than 200 e-mails have been sent and roughly ten thousand people have visited the website. Lee declined to say which businesses specifically support the campaign.

Canada Post was not available for comment.

“The system used to calculate delivery rates is accurate over the long-term,” Canada Post told CBC News on Jan.12.

The president of the parcel division at Canada Post, Louis O’Brien, also told CBC News that he was not impressed with Lee’s tactics.

Vinet says there will be no new rules and the act will not be modified.

But with pressure from Lee Valley Tools and other businesses, some speculate the issue is not going to go away.

“We are not done,” says Lee. “The ads may stop but the activity will not.”