CFIB urges Ottawa to intervene as strike impacts orders, payments, and delivery costs nationwide
The ongoing Canada Post strike, now in its second week, has caused significant financial losses for the small- and medium-sized business sector, according to the Canadian Federation of Independent Business (CFIB).
These losses total at least $765m, equating to $76.6m per business day. If the strike continues unresolved, CFIB warns that losses could exceed $1bn by Wednesday.
Corinne Pohlmann, executive vice-president of Advocacy at CFIB, expressed criticism of Ottawa's inaction during the ongoing challenges faced by small businesses.
She stated, “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.”
Pohlmann also pointed to recent remarks by the Labour Minister, noting that he acknowledged mediation talks had been suspended because the parties were “too far apart to reach a deal” and that a prolonged labour conflict was a possibility.
She emphasized that the Labour Minister has the authority to resolve the situation.
The strike has impacted 75 percent of small businesses, with 41 percent of these businesses reporting an average cost impact of $2,000.
These losses stem from delayed payments, higher costs for alternative delivery methods, lost orders, and reduced opportunities to promote their businesses during the critical holiday season.
A survey by CFIB shows that 69 percent of small business owners are urging the government to introduce back-to-work legislation.
CFIB has highlighted specific examples from businesses across the country to illustrate the severe consequences of the strike:
- A bookkeeping business in Alberta has funds stuck in the mail, as insurance companies send receivables exclusively via Canada Post.
- An Ontario consulting firm is forced to absorb higher shipping costs or offer steep discounts to clients due to a lack of alternatives.
- A Prince Edward Island seed supplier, reliant on Canada Post for 86 years, is now facing storage fees for 270,000 undelivered catalogues and expects a decline in Christmas orders.
CFIB is calling on the federal government to intervene immediately, proposing binding arbitration or back-to-work legislation as measures to mitigate the impact on businesses during the 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,” Pohlmann added.
