Small businesses frustrated as Ottawa moves to end Canada Post strike

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For the owner of Sparta Country Candles and Anything Used, a store located southeast of London, Ont., the news that Ottawa is ordering Canada Post employees back to work pending arbitration was small consolation.

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“It’s too little, too late,” said Mary Muscat. “For most small businesses, the Christmas season is almost done.”

On Friday, Labour Minister Steven MacKinnon announced that he was referring the dispute to the Canada Industrial Relations Board (CIRB) to determine whether the negotiations had reached an impasse. If the CIRB deems it unlikely the parties will reach a negotiated settlement, it will issue a back-to-work order, requiring Canadian Union of Postal Workers members to resume operations under the terms of the current collective agreements until May 22, 2025.

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But store owners say the 29-day strike, which sent 55,000 Canada Post employees to the picket lines, has not only cost them lost sales over the critical holiday shopping period but left them with a massive backlog of inventory and a long wait for payments that are stuck in the mail.

Dec. 15 typically marks the cutoff for guaranteed Christmas delivery, so the window for holiday shipments is set to close. Steve Malia, owner of Ontario Telescope and Accessories in Bolton, Ont., said the strike has already caused significant disruption to his business. “I’m glad to see things could be moving forward again,” Malia said. “But I’m expecting that there will be a backlog to work through, and I’m concerned that’s still not going to be enough to make the holiday season full.”

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Malia says the disruption has meant extra costs and delays. “It has cost us money from having to use more expensive carriers like FedEx and UPS, but we’re not necessarily getting the level of service they try to work towards because they’ve been inundated with extra packages and it’s caused delays,” he explained.

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Beyond shipping, Malia cited the delays in inventory and pickups. “A one or two day delay doesn’t seem like a whole lot, but when you’re working with a finite amount of time before Christmas, that’s a lot,” he added.

The halt in mail delivery has also put a strain on Malia’s cash flow. “The other impact is not receiving payments from some of our U.S. customers who pay by cheque. There’s a fear that it might not come in at all, because we don’t know if the mail has been lost,” he said.

Other business groups weighed in on the government’s decision throughout the afternoon. The Canadian Federation of Independent Business (CFIB) expressed relief at the move but highlighted the lasting damage the strike has caused. “Small firms have been losing $100 million per day, with total damage of $1.6 billion since the strike began,” said CFIB president Dan Kelly. “Nearly three-quarters of small firms report they will reduce their dependence on Canada Post going forward, making it even more challenging for the corporation to operate in the future.”

Last month, the Canadian Chamber of Commerce warned that the disruption is yet another blow to Canadian supply chains, already been weakened by recent port and rail disruptions. The chamber highlighted the strike’s significant impact on e-commerce businesses, particularly those relying on holiday revenue.

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While the CFIB welcomed the government’s intervention, Kelly noted that the strike’s impact has already been profound. “We can’t keep doing this,” he said. “Canada Post needs massive reforms to ensure that even basic services to all Canadians can continue. And we need a better process to resolve major labour disputes among our key supply chain players, like ports, railways, and Canada Post.”

Muscat’s frustration reflects that of many owners in the small business community. “The only people this strike has been hurting is small businesses,” she said. She explained that her company had to turn away orders. “We had to say, ‘Sorry, we can’t do it.’” The disruption has forced businesses like hers to find alternative ways to manage payments and shipments, including relying more heavily on e-transfers and other digital solutions.

Canada Post has acknowledged the Minister’s announcement and said it is reviewing the details to comply with the process. In a statement, the corporation said, “Our commitment has always been to reach negotiated agreements with the Canadian Union of Postal Workers (CUPW) that would help us better serve the changing needs of Canadians and provide good jobs to those who provide the service.” Canada Post has also assured that it will make plans for the return of workers as soon as possible and provide further details on its recovery process.

The Financial Post contacted the CUPW for comment but did not receive a response by press time.

• Email: shcampbell@postmedia.com

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