Small businesses brace for holiday losses with Canada Post strike in Day 3

As Canada Post workers continue their strike into a third day, small business owners are expressing concerns that the timing of the walkout could not be worse.

Lorne James, a model train retailer in Tillsonburg, Ontario, estimates that his business could lose $10,000 daily in online sales, recalling a similar postal strike in 2018 that lasted for a month and significantly affected his business. The strike that year ended in late November with the introduction of back-to-work legislation. “Heading into our busiest season, when we make a third of our sales over just two months, being held hostage like this is unacceptable,” James said. “For a rural business like ours, it's just not right."

James pointed out that the critical window for online shipping to ensure Christmas deliveries is closing in two weeks. However, after nearly a year of negotiations, the two sides still appear far from reaching an agreement. The federal government has stated it is not planning to intervene at this time, as approximately 55,000 Canada Post workers walked off the job early Friday.

"I’m not looking at any other solution except for negotiation right now," said Labour Minister Steven MacKinnon during a press conference in Montreal. A spokesperson for the minister confirmed on Saturday that a special mediator, Peter Simpson, is supporting the ongoing talks.

Jasmin Guénette, vice-president of national affairs at the Canadian Federation of Independent Business, warned that shoppers who would normally buy from small businesses may turn to large corporations like Amazon instead.

In response to the strike, James began exploring alternatives to Canada Post about six weeks ago, opting to use Canpar Express, UPS, and FedEx for domestic shipments. However, he noted that these services charge up to three times the cost of Canada Post, making them unaffordable for his business. "Around 85 percent of our parcels are delivered by mail, so we're holding our international shipments until the strike is resolved through mediation or legislation," James explained.

Onze Montréal, a women's fashion boutique, is also struggling to cope with the impact of the strike. "People expect fast deliveries during the holiday season, and now we’re uncertain about how other carriers will handle deliveries," said Layali Suwwan, an online salesperson at the boutique. The business normally ships 35 packages a day using Canada Post, but if the strike persists, it may be forced to find a new courier, which could lead to price hikes.

Steven Tufts, a labour expert and associate professor at York University, noted that the Canadian Union of Postal Workers (CUPW) holds some bargaining leverage due to the timing of the strike, but he emphasized that there is a larger issue at play: the future of Canada Post's business model. He explained that the traditional mail-delivery model, which has seen a decline of over 50 percent in letter volume over the past two decades, has been increasingly supplemented by parcel deliveries. CUPW has advocated for expanding services like postal banking and wellness checks for seniors, which are common in other countries.

Tufts also observed that Canada Post faces competition from private companies like Amazon, which has developed a complex network of subcontractors to handle parcel deliveries. While Amazon’s approach relies on lower-paid workers, Tufts explained that Canada Post’s model, which includes unionized employees, is more expensive.

Wages remain a key sticking point in the negotiations. Canada Post has offered wage increases above inflation over four years, totaling 11.5 percent. The proposal also includes the protection of defined benefit pensions, job security, and health benefits for current employees.