The Canada Post strike, now two weeks in, has cost the small- and medium-sized business sector at least $765 million or $76.6 million each business day. At this rate, if the strike is not immediately resolved, it will have cost the sector over $1 billion as of Wednesday, warns the Canadian Federation of Independent Business (CFIB).
“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. The Labour Minister recently said mediation talks have been suspended because the two parties remain too far apart to reach a deal and that a long labour conflict is a possibility, but he is the one who has the power to put an end to this mess,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.
The CFIB said the strike has negatively impacted three quarters of small businesses. Among those, 41% reported cost impacts totaling $2,000 in lost orders, more expensive delivery alternatives, late payments and the inability to promote their business at a crucial time of year. Overall, 69% of small business owners want the government to introduce back-to-work legislation.
Here’s what some small businesses across the country have told CFIB about the impact the strike is causing them:
- A bookkeeping service business in Alberta has funds stuck at the post office as the shop’s receivables are all sent via mail from insurance companies.
- For a consulting firm in Ontario, there is no shipping alternative without giving big discounts for clients, forcing the company to pay for all the extra shipping costs.
- A seed supplier in Prince Edward Island, that has been dependent on Canada Post for 86 years, has over 270,000 catalogues that cannot be mailed via a bulk service. Rather than looking forward to increased revenue, it’s now facing substantial storage fees for the large volume of printed materials and says orders for Christmas will be low.
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.
“Small firms have already missed the most important sales weekend of the year, with Black Friday, Small Business Saturday and Cyber Monday. 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,” said Pohlmann.
The CFIB is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region.
Ruhee Ismail-Teja, Vice President, Policy & External Affairs, for the Calgary Chamber of Commerce, said the Canada Post strike is more than a disruption to mail services or a logistical challenge — it’s a serious risk to Canada’s economy, especially during the critical holiday season.
“It’s anticipated that one in four Canadians shopped on Black Friday and 36% plan to shop on Cyber Monday, and many business owners rely on this season to meet the sales and revenue targets for the year,” she said.
“Eighty per cent of small businesses currently rely on Canada Post for essential operations like shipping and invoicing. They are now facing delays, higher costs and reputational damage as a result of the ongoing labour dispute. While alternatives exist, they are often more expensive and less accessible for many, particularly small businesses, which already face challenges like rising costs and inflation. Further, small businesses often rely more heavily on just-in-time inventory and are often more dependent on e-commerce to reach customers.
“We call for an immediate resolution to this strike to prevent further disruptions to supply chains, business operations and economic growth. We also encourage Calgarians to shop in-store where they can. This is not just a great way to explore the city, it is an investment in the community: for every dollar spent at a small business, 66 cents on average stays local, compared to 11 cents when consumers shop at a large multinational business.”
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