Canada is currently facing significant upheaval due to the extended strike by Canada Post, which commenced on November 15, affecting not just the postal workers but also thousands of local businesses and everyday Canadians. Over 55,000 members of the Canadian Union of Postal Workers are participating in this labor action, seeking improved wages and benefits as they grapple with the rising cost of living and working conditions.
For many small businesses, this strike could not have come at a more challenging time. Stores typically rely on the holiday shopping season for substantial sales, and Black Friday, Small Business Saturday, and Cyber Monday are usually pivotal days for them. With Canada Post's parcel delivery services disrupted, these businesses find themselves scrambling for alternative options, often at far greater costs.
Take Dan Driediger, who runs GoTrekkers from his home in Missinipe, Saskatchewan. His business specializes in printing and shipping nautical maps worldwide, and he’s already witnessing dire consequences. "I'm in trouble," Driediger shared, explaining how he has seen around 70 percent of his business evaporate since the strike began. With over $2,000 worth of orders waiting to be shipped and only Canada Post as a viable shipping option, he's worried about not just losing this holiday season but potentially his business altogether.
For Driediger, the typical cost of shipping through Canada Post is about $3. The other shipping options available, like couriers, can skyrocket to around $70, making them nearly impossible to use profitably. "I have to wait," he said, highlighting the pressing nature of the strike's impact on his life.
On November 28, the situation worsened as Canada Post announced they would temporarily lay off some of the workers participating in the strike, which has raised eyebrows about the legality and ethics of such actions during labor disputes. Union representatives have decried this move, indicating it might create division among the workers and serve as intimidation during this tense time of negotiation.
From the perspective of Canada Post, the corporation is adamant about needing to modernize its services and address financial losses stemming from operations. Currently, Canada Post claims it has lost approximately $3 billion since 2018 as competition increases within the parcel delivery market. They argue this puts them at risk of running out of operating funds by spring if they cannot renegotiate their agreements with the union.
It appears both sides are far apart on the key issues, with the union seeking a whopping 22 percent wage increase over four years—an answer to the struggle posed by soaring living costs—all the more pressing during these inflationary times. Canada Post has counter-offered with half of what has been proposed, which leaves many workers with unresolved discontent as they face mounting pressures from the workplace.
Jennifer Henson, another postal worker stationed in Calgary, voiced frustration not just about the negotiations but also about the hardships faced by families like hers as they contemplate the future. Currently, neither she nor her spouse, also working for Canada Post, is earning any income. Henson has had to make tough financial choices, even moving her family back to live with her parents temporarily to ride out the financial storm caused by the strike. "It's getting a bit scary," she expressed, underscoring the gravity of their situation.
Henson highlighted how their families and fellow workers are attempting to support each other through this challenging time. Their resilience is bolstered by the support from the community who swings by with coffee or cheers them on during picket lines, reminding them of the solidarity they still share even amid adversity.
While Henson and Driediger navigate the personal impacts, the greater consequence spirals outward to small businesses who have made Canada Post their primary shipping service until now. Several entrepreneurs have attempted to pivot to other delivery services like UPS or FedEx. Unfortunately, these alternatives prove to be quite costly, squeezing their profit margins even tighter. For Tyler McCombs, whose company Devon + Lang specializes in underwear, shipping now costs upwards of $12 per shipment compared to nearly insignificant costs with Canada Post, crippling their profit margin.
Some businesses have resorted to raising their prices, aimed at offsetting extra shipping costs. Others have expressed frustration over their logistical constraints caused by Canada Post’s failure to deliver orders efficiently. Approximately 11 million parcels are currently awaiting delivery and potentially lost profits as nearly three-quarters of small businesses rely on Canada Post for customer shipments.
Alexandra Clark of Shopify tweeted her concerns, indicating over 67,000 small merchants are at significant risk if the strike continues through the holiday shopping season. "If this goes beyond Black Friday, it will devastate numerous online businesses, especially with the timing over Christmastime," she noted.
The effects of the strike also reach beyond businesses and consumers. Many non-profit organizations and charitable efforts are witnessing declines, as Canada Post is integral to the fulfillment of donations and community outreach programs around this time of year. Some have started to worry about maintaining their annual programs and have begun reconsidering plans for how best to approach operations amid this strike.
Looking forward, many are questioning how much longer these negotiations can drag on, and whether government intervention will be needed. Labour Minister Steven MacKinnon confirmed the federal government would refrain from stepping in, differing to earlier response strategies during rail and port strikes. This hands-off approach suggests the resolution needs to emerge from the bargaining table, yet as time drags on with mediation talks suspended, doubt grows around the prospects for quick resolution.
While many Canadians mind the approaching holiday season, it continues to become increasingly apparent just how intertwined the postal service is with the everyday operations of countless sectors across the country. From businesses relying on Canada Post to move their products, like Dan Driediger from GoTrekkers, to employees like Jennifer Henson worrying about making ends meet; all these players remain with bated breath, waiting for these negotiations to wrap up so they can reclaim their livelihoods and business operations.
The situation remains fluid, with all eyes firmly on both sides of the negotiation to see who will yield first, as countless packages and prosperity hang precariously amid the strike's standstill. The hope among workers, businesses, and the general public alike is for resolution, as certainly no one wants to continue feeling the substantial pinch of this nationwide postal disruption.
