B.C.’s small and rural businesses say the financial impact of the Canada Post strike will be severe.
With less than six weeks until Christmas and a postal strike on strike, one retailer said it may not be able to fulfill some orders and it would cost more to deliver them using another courier.
“Shipping with Canada Post has its advantages over other carriers,” said Chris Papiolis, co-owner of Sweetlegs, a clothing company in Kelowna.
Specifically, he said they charge extremely low rates for delivery to rural areas, and in some areas the Postal Service is the only company that delivers. It is also the only Canadian delivery company that delivers to PO boxes.
As a result, Papiolis said it should contact customers who list a rural delivery address to check if they have an alternative address and, if they agree, use a private courier.
He added that otherwise, orders would have to be canceled as there would be no way to deliver during the strike period.
B.C.’s small and rural businesses say the financial impact of the Canada Post strike will be severe. CBC
Papiolis said about 25% of orders for the store he runs with his wife are delivered via postal service. In recent years, the company has processed about 100,000 orders per year, which means that up to 25,000 packages are typically delivered through the Postal Service each year.
The number of completed deliveries may be lower this year. He said the Postal Service going on strike just before Black Friday could impact the long-term growth of small businesses.
“Using other delivery companies costs 50 to 100 percent more,” he said, adding that he expects fewer companies to offer free shipping as a result.
Postal Service spokesman John Hamilton said the company was extremely disappointed by the strike. He said rural communities in particular would feel the burden.
Union of Postal Workers (CUPW) BC leader Stephen Gale said they had been negotiating with the postal company for a year but were unable to reach an agreement he believed was fair. Workers want safer working conditions and wages that keep pace with rising prices.
The postal company said it suffered a loss of $490 million in the first half of 2024, and a total loss of $3 billion when calculated from 2018 onwards. The company said the strike would only worsen its financial situation and that the union’s demands would further increase fixed costs it could not afford.
Meanwhile, CUPW representatives said executives are still receiving bonuses and the company can overcome its financial situation on its own by providing expanded services to Canadians.
Gale added that the company’s losses were not due to wages but to other business decisions.
On the 15th, the federal government announced that it had no plans to intervene in the strike.
