As Canada approaches one of the biggest shopping weekends of the year, many Canadians face the grim reality that their Black Friday purchases may not arrive before Christmas. This disruption comes as Canada’s postal service, Canada Post, has been embroiled in a national strike for over two weeks, threatening the delivery of holiday gifts and causing steep financial losses for small businesses.
The ongoing strike, which involves the Canadian Union of Postal Workers (CUPW), has significantly disrupted the country’s delivery system, especially during a crucial retail period. The strike centers around a dispute over labor conditions, including pay raises, better benefits, and the union’s opposition to Canada Post hiring more temporary workers. Canada Post, on the other hand, argues that flexibility is needed to modernize the postal service and keep up with growing demand in the parcel delivery market, which has boomed due to the rise of e-commerce.
For many businesses, particularly small enterprises, the timing couldn’t be worse. Lorne James, the owner of Otter Valley Railway, a model train company in Ontario, estimates he has lost C$120,000 in sales since the strike began. “It’s going to wipe out a good number of businesses,” James said, noting that 80% of his orders come from online customers, and almost all of them used Canada Post for delivery. With inventory sitting in warehouses and customers unable to receive their purchases, many small business owners are feeling the pressure as the holiday season approaches.
Retail analysts have also voiced concern, with Bruce Winder predicting that the ongoing strike could deal a major blow to businesses, especially since Christmas sales often account for 30-40% of annual revenue for gift-related products. Compounding the issue is that many Canadians were already planning to spend less this holiday season due to rising living costs. “It’s a double whammy,” Winder said, referring to both the postal strike and negative consumer sentiment.
While some businesses, like James’, have been able to mitigate some of the impact by negotiating contracts with alternative delivery services, many others are struggling with inflated shipping costs or limited delivery options. John Barrett, director of sales for Vesey’s Seeds, Canada’s largest mail-order garden business, expressed frustration over the situation. With 250,000 seed catalogs sitting in a warehouse, Barrett is missing out on significant sales, unable to fulfill customer orders due to delivery delays.
In response to the strike, Shopify, a major Canadian e-commerce company, called for government intervention, urging action to prevent further harm to small businesses. In an open letter, Shopify emphasized the importance of Christmas sales for the survival of these businesses and urged the government to resolve the dispute before it leads to a devastating blow for the economy.
The situation has escalated as the strike continues, with Canada Post’s financial losses mounting. The company reported a loss of C$749 million in 2023, and the strike has only worsened this. Canada Post has said that it has delivered 10 million fewer parcels since the strike began. Meanwhile, the union argues that the company is attempting to replace full-time jobs with temporary “gig” workers, a move they argue is unsustainable and damaging to workers.
The Canadian government, however, has shown little indication of intervention. Labour Minister Steven MacKinnon has expressed that the resolution lies in the hands of Canada Post and the union, with no sign of an imminent resolution to the deadlock. As the strike drags on, many businesses, including Barrett’s, are now reconsidering their future partnerships with Canada Post.
Ultimately, as the holiday season nears, the ongoing postal strike in Canada is proving to be a serious challenge for both consumers and businesses. With no clear resolution in sight, the consequences of the strike are becoming more evident, as small businesses face potential financial ruin during one of their most critical sales periods. As Christmas approaches, the question remains: will Canada Post and the union reach a deal in time to save the holiday season, or will the strike continue to disrupt lives and livelihoods across the country?
