Ongoing postal strike disrupts small businesses, causing $76.6m in daily losses and holiday setbacks
The Canada Post strike, now entering its third week, has already cost small- and medium-sized businesses across the country $765m, equating to daily losses of $76.6m.
The Canadian Federation of Independent Business (CFIB) warns that, if unresolved, these losses will surpass $1bn by Wednesday.
CFIB’s executive vice-president of Advocacy, Corinne Pohlmann, voiced strong criticism of the government’s inaction.
“It’s not Grinch who is about to steal Christmas. It’s Ottawa sitting idly on the sidelines while small businesses are losing crucial revenue and sales due to circumstances outside of their control,” she stated.
Pohlmann highlighted that the Labour Minister suspended mediation talks, citing irreconcilable differences between the parties, but stressed that the Minister has the authority to resolve the issue.
The strike has affected 75 percent of small businesses, with 41 percent reporting average losses of $2,000. Business owners have faced increased costs for alternative shipping methods, late payments, missed orders, and difficulties promoting their businesses during a key sales period.
The survey by CFIB revealed that 69 percent of small business owners are urging the government to implement back-to-work legislation to prevent further disruption.
Small businesses have shared examples of how the strike has disrupted their operations. An Alberta bookkeeping service reported that funds sent by mail from insurance companies remain stuck at post offices.
An Ontario consulting firm noted that without shipping alternatives, it has absorbed extra costs to offer discounts to clients.
Meanwhile, a seed supplier in Prince Edward Island, which has relied on Canada Post for 86 years, is struggling with storage fees for 270,000 catalogues that cannot be mailed. The supplier anticipates a sharp decline in Christmas orders.
The timing of the strike has been especially detrimental, with businesses missing revenue from Black Friday, Small Business Saturday, and Cyber Monday. Pohlmann stressed the urgency of resolving the conflict.
“Small firms have already missed the most important sales weekend of the year,” she said. “If the strike isn’t settled this week, Canada Post will not be a player for the entire holiday season given the backlog it will have to sort through before taking on new business.”
CFIB has called on the government to impose binding arbitration or back-to-work legislation to salvage what remains of the holiday shopping season. Without intervention, small businesses face mounting challenges at a time critical for their survival.
