Businesses Jump Ship as Canada Post Strike Looms
Entrepreneurs from coast to coast are keeping an eye on developments to determine if
Canada Post
and the labor union representing its employees can bypass
A walkout before the deadline on Friday.
However, some aren’t expecting this to happen and have consequently begun to explore alternative options.
On Tuesday, one day following the Canadian Union of Postal Workers (CUPW) issuing a 72-hour strike notification to Canada Post, the Calgary-based bookstore Slow Burn Books declared that they would cease utilizing the country’s main postal service.
“Amidst the uncertainties with Canada Post, we will temporarily be utilizing only ChitChats,” the store stated in an Instagram update.
“We recognize the significance of prompt deliveries, and we genuinely value your patience and comprehension as we address this matter. Our team is diligently striving to reduce disruptions, and we’ll provide continuous updates throughout the process,” stated the post.
Should the union and the Crown corporation fail to reach an agreement by midnight on Friday, up to tens of thousands of postal employees will go on strike, causing a complete shutdown of postal services for the second time within half a year.
Video: Small Businesses in Edmonton Get Ready for Potential Canada Post Strike
In an email to Global News, Slow Burn Books stated that deciding to part ways with Canada Post was not a simple choice.
We were reluctant to make this choice; nonetheless, since Canada Post employees are poised to go on strike, we are attempting to adapt preemptively, much like we did half a year ago when they initially announced their intent to strike.
They aren’t alone, either.
The Edmonton-based Swish Vintage is transitioning to using Purolator and UPS for their shipping needs, as mentioned by the store’s manager, Natasha Dawson.
“We are transitioning to use various courier services. I strongly believe that the Canada Post employees will likely go on strike. We aim to avoid having any parcels stuck in between, as this can be quite irritating for our customers,” she stated.
Morgan Kunitz, who owns Kunitz Shoes based in Edmonton, mentioned that her company was affected during the previous strike, which led them to establish an emergency strategy.
The moment we learned that negotiations weren’t continuing and another strike was being discussed, we ensured we changed to alternative delivery services. The last time this happened, many of our parcels got delayed for an extended duration just post-Christmas,” she explained.
For local deliveries, Kunitz is transitioning to an Edmonton-based courier service called Deeleeo, and will be utilizing a mix of various other delivery services for shipments beyond the city limits.
Although the shipping fees have increased by 25 percent, Kunitz believes it is worthwhile to maintain her dedicated customer base with this service.
U.S. President Donald Trump’s trade war has already shaken consumer confidence in Canada and a postal strike could hurt it further, she said.
In this environment of tariffs, stability is nowhere to be found at the moment. Consumers are seeking an excuse not to make purchases due to current events, and this strike provides just one more reason why they might hesitate.
Video: Tariffs set to push grocery prices higher
Chetan Dave, an economist from the University of Alberta, noted that although companies may experience increased expenses, certain ones might opt for stability rather than focusing solely on costs.
The question might well be — once any impending potential strike comes to an end — have these customers been lost forever?
“Once the switch has been made, I fail to see any compelling reason for a small business to revert to using Canada Post unless it offers an identical service at significantly lower costs,” he stated.
More on Canada
-
Canada Post at a glance: The situation as a strike approaches
-
Carney receives cabinet mandate letter to tackle ‘generation-defining challenge’
-
Quebec physician tormented by familial trauma outraged due to suggestions of being ‘unproductive’
The Retail Council of Canada has cautioned that for certain small businesses, Canada Post is the only option available.
“The council stated in a press release on Tuesday that for small and independent retailers, especially those operating in the online retail sector, Canada Post frequently remains the most cost-effective and dependable choice for delivering products nationwide,” they noted.
The statement also noted that alternative delivery service providers frequently prove uneconomical, and as the most recent disruption demonstrated, they swiftly hit their maximum capacity and fail to handle additional volume effectively.
Several companies are halting all deliveries instead of transitioning to something new.
“Since we started our business 10 years ago, we have solely used Canada Post,” stated Mike Loftus, the president of Ottawa-based Pinball Medics.
The firm supplies pinball machines and components. During the labor disruption at Canada Post last year, Loftus recognized the significant reliance of his business on the postal service.
“We experimented with a few alternative shipping companies, and let’s just say it didn’t turn out well. During our peak month, I ended up losing money, parcels went missing, and some items vanished forever,” he stated.
Loftus stated that the combination of service quality and coverage provided by Canada Post at the specified price point is unmatched.
“I’ve opted to pause the online store instead of switching carriers, until this issue is resolved and we can recommence shipping via Canada Post,” he stated.
On May 16, Pinball Medics ceased accepting orders for delivery.
Video: Small Businesses in Edmonton Get Ready for Potential Canada Post Strike
Kunitz mentioned that approximately one-fourth of her sales originate from online transactions.
Although she claims that transitioning is unavoidable, her company would suffer financially in the long run if the strike continues for an extended period.
She might even lose clients.
“They are our top priority when it comes to our e-commerce business. Shipping costs would be extremely high without Canada Post, making sustainability difficult in the long run. Additionally, they have access to regions where UPS or Canpar cannot deliver,” she explained.
–With contributions from Global’s Sarah Komadina