Canada Post strike to costssmall businesses $1 billion: CFIB

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The Canada Post strike, now in its third week, is set to cost Canada’s small- and medium-sized businesses more than $1 billion by Wednesday, according to the Canadian Federation of Independent Business (CFIB). The prolonged labour dispute, which began on Nov. 15, has paralyzed operations at the Crown corporation, disrupting supply chains and dealing a significant blow to small businesses during the critical holiday season.

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“It’s not the 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,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy, in a statement released Monday. CFIB estimates that the strike is costing small businesses $76 million daily, with three-quarters of the sector reporting negative impacts. For 41 per cent of those businesses, costs have surpassed $2,000 due to lost orders, increased delivery expenses, delayed payments, and limited promotional opportunities.

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Ben Richmond, managing director, North America at Xero, a global small business platform, highlighted the stakes for entrepreneurs at this time of year. “We know that the holiday shopping season is a crucial time for many small business owners, and even a minor disruption to the ordinary course of business can have a critical impact on small businesses’ cash flow and bottom lines,” Richmond said. He encouraged business owners to prepare by offering pre-orders, clearly communicating delivery delays, and selling gift cards to bolster cash flow.

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The impacts are hitting businesses hard across the country. According to CFIB, an Alberta bookkeeping service has funds stuck at the post office because its receivables are mailed in from insurance companies. In Ontario, a consulting firm is paying out of pocket for alternative shipping options to avoid losing clients, with no ability to pass on the costs. Meanwhile, a seed supplier in Prince Edward Island, reliant on Canada Post for more than 86 years, faces mounting storage fees for 270,000 undelivered catalogues.

Small business owners are calling on the government to step in.

“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,” Pohlmann warned.

In an effort to move talks forward, Canada Post announced on Dec. 1 that it had presented the CUPW with a “comprehensive framework” aimed at reaching a resolution. “The framework includes proposals to bring greater flexibility to the corporation’s delivery model, while also demonstrating movement on other key issues,” Canada Post said in an email, adding that it remains “committed to negotiating new collective agreements that will provide our employees and customers with the certainty they are looking for.”

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The call for government intervention echoes similar demands from the Canadian Chamber of Commerce, which sent an open letter to Labour Minister Steven MacKinnon and Public Services and Procurement Minister Jean-Yves Duclos last Friday. The chamber warned that the strike is yet another blow to Canadian supply chains, which have already been battered by recent port and rail disruptions, and highlighted its significant impact on e-commerce businesses that rely on holiday revenue.

Mediation efforts between Canada Post and the CUPW broke down last week, with federal mediators suspending talks indefinitely. Labour Minister MacKinnon has ruled out binding arbitration for now, emphasizing that the parties themselves must resolve the impasse.

Canada Post reported that the strike has already delayed nearly 10 million parcels and could paralyze holiday deliveries. In response, the corporation has temporarily laid off some striking workers, a move CUPW has denounced as a “scare tactic.” Union president Jan Simpson maintains that CUPW is committed to securing better working conditions for its 55,000 members but has expressed frustration at the lack of progress in negotiations.

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For Canada’s small businesses, the stakes couldn’t be higher. Many have already missed key shopping events like Black Friday, Small Business Saturday and Cyber Monday, and further delays could push some into financial peril. “CFIB is urging Ottawa to immediately intervene and impose binding arbitration or introduce back-to-work legislation to salvage some of the critical holiday shopping season,” the statement said.

• Email: shcampbell@postmedia.com

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