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The Canada Post employee strike threatens to hit hard small businesses, which must find solutions as the holiday season approaches.
Sales and turnover will decrease, according to the director of the Quebec Retail Council, Damien Silès. This strike came very poorly in terms of timing, two weeks to the day before Black Friday, which kicks off the busiest period of the year for its members.
To avoid losing valuable sales, small businesses, which are particularly dependent on Canada Post services, are forced to turn to other carriers.
The founder of Café Pista expects additional delays with all other transport companies due to the higher traffic.
It will require a little more monitoring from our employees to ensure that the packages arrive safely, he thinks. With these delays, its recurring customers risk turning to other companies.
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Canada Post workers picket outside a sorting center in Montreal on Friday, November 15, 2024.
Photo: The Canadian Press / Graham Hughes
Chris Pafiolis, co-owner of SweetLegs, a clothing company in Kelowna, British Columbia, points out that Canada Post rates for delivering to rural areas are considerably lower and that the Crown corporation is the only one to serve certain regions of the country .
In Quebec, more than 30% of packages sent by retail businesses are transported by the state company.
No matter what package we send, it costs almost double with other carriers.
A quote from Anne Lspérance, owner of the Montreal boutique Belle et Rebelle
Companies therefore have the choice of assuming the additional costs or passing the bill on to their customers.
We are going to assume these costs with bated breath, she has decided for her business. I would rather pay more and keep my customers than stop selling online and have my customers buy elsewhere.
The cooperative of independent Librairies of Quebec is trying to encourage customers to pick up their order in store or make their purchase directly in bookstores.
Even if the customer who buys online will not see the difference, she reminds that it is the bookseller who will have to absorb the costs.
In mediation
Nearly 55,000 Canada Post workers are on strike following the failure of negotiations for the renewal of their employment contract on Friday.
Ottawa has since appointed a mediator to help the two sides find common ground, particularly on the contentious issues of working hours and salaries.
By email, Canada Post welcomed this appointment and said it was determined to reach new agreements at the negotiating table rather than through arbitration.
The union members are demanding in particular a salary increase of 22% over four years. Canada Post recalls that it offered competitive salary increases (11.5% over four years) and additional paid leave, at a time when it has lost $3 billion since 2018.
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“The impacts on small businesses, charities and remote communities will increase as the strike continues,” writes Canada Post. (Archive photo)
Photo: The Canadian Press / Christine Muschi
A second hard blow
The strike by Canada Post workers began as activities began to resume at the country’s ports, paralyzed by several labor disputes.
We have just finished a strike to have a second, it’s starting to take a toll, deplores Damien Silès. It can take days or even weeks to get back to normal.
In ports, affected companies estimate that it takes around five days to compensate for each day of work stoppage.
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Activities resumed on Saturday at the Port of Montreal, after five days of lockout. (Archive photo)
Photo: The Canadian Press / Christine Muschi
For the moment, the federal Minister of Labor, Steven MacKinnon, maintains that he does not intend to intervene in the conflict to force the resumption of activities at Canada Post as he recently did in the ports and on the railways this summer.
In these two conflicts, he asked the Canadian Industrial Relations Board (CIRB) to order the resumption of activities, to put an end to economic self-destruction, two decisions are contested by the unions.
With information from Catherine Dib and CBC News.
What challenges do small businesses face when transitioning to alternative shipping carriers during the Canada Post strike?
Thank you for the opportunity to conduct this interview. We are here today with Mr. Damien Silès, director of the Quebec Retail Council, and Mr. Chris Pafiolis, co-owner of SweetLegs, a clothing company in Kelowna, British Columbia. Firstly, can you both share your thoughts on the current situation of the Canada Post employee strike and its impact on small businesses, particularly on the holiday season?
Mr. Damien Silès: Well, this strike came very poorly in terms of timing, two weeks to the day before Black Friday, which kicks off the busiest period of the year for our members. Small businesses are particularly dependent on Canada Post services, and this strike threatens to hit them hard. It’s clear that sales and turnover will decrease, and it could be a second hard blow for companies that are still trying to recover from the previous port and railway strikes.
Mr. Chris Pafiolis: Yes, definitely. As a small business owner myself, we rely heavily on Canada Post for shipping, and the strike is causing a lot of problems. We were already facing increased shipping costs due to supply chain issues, and now with Canada Post being on strike, it’s hitting us even harder. We’re trying to find alternative carriers, but no matter what package we send, it costs almost double with other carriers. It’s just not feasible for some small businesses to absorb these costs.
Damien, you mentioned that small businesses are turning to other carriers. How feasible is this solution for them?
Damien Silès: To avoid losing valuable sales, small businesses are forced to turn to other carriers like UPS, FedEx, and Purolator. However, these carriers are already facing high traffic volumes due to the holiday season, so they might not be able to accommodate the sudden increase in demand. Additionally, some companies might not be able to accept higher shipping costs, which could lead to a decrease in their profit margins. It’s a tough situation for small businesses, especially those who rely heavily on Canada Post.
Chris, has the strike led to any changes in your company’s operations?
Chris Pafiolis: Yes, we’ve had to adjust our shipping strategies. We’ve started using more local carriers
