As Canada Post workers mull strike, small business ready to abandon service

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OTTAWA — As Canada Post workers begin voting on a final contract offer with yet another strike looming, a new report suggests most small businesses are ready to permanently return Canada’s postal service to sender.

“Yo-yoing in and out of strike mandates is causing Canada’s small businesses — one of Canada Post’s last groups of profitable customers — to leave for good,” said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB.)

“Small business owners and other consumers need certainty.”

The CFIB’s report found that nearly two in three — or 63% — of Canadian small businesses are prepared to divest themselves completely from Canada Post if there’s another strike.

During the 2024 strike, Kelly said, 13% of small businesses stopped using Canada Post altogether, with many more expected to find more reliable alternatives if the 53,000 Canadian Union of Postal Workers (CUPW) members again choose to strike.

“Every time Canada Post goes on strike, more and more businesses leave forever,” Kelly said. 

Research carried out by the CFIB found that four out of five Canadian businesses still use Canada Post — nearly three-quarters use it for sending cheques, while 61% use it to send general mail.

Over half, the report states, prefer Canada Post for its low cost, 50% for convenience — while only 25% considered Canada Post reliable, and only 9% reported good customer service.

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Canada Post reported operating losses upwards of $1.3 billion in 2024, with revenues falling by $800 million compared to 2023.

Voting on Canada Post’s latest contract offer began early Monday morning and will run until Aug. 1.

The Crown corporation’s latest offer includes signing bonuses of up to $1,000, four years of wage increases — starting at 6% and evening out at 2% — and six new personal days.

The latest offer also makes a number of concessions previously rejected by the union, including ending proposals for a new health benefits plan, post-retirement benefit changes and enrolling future employees in a defined contribution pension plan.

According to the CFIB, the 2024 Canada Post strike — which halted mail delivery across the country from Nov. 15-Dec. 17 — cost small businesses upwards of $100 million per day.

Corinne Pohlmann, executive vice-president of advocacy at the CFIB, said Canada Post is in need of massive reform.

“It’s long overdue for the federal government to implement the well-studied changes that have been required for over a decade,” she said.

“Small business owners deserve a long-term plan and a postal service they can count on.”

bpassifiume@postmedia.com
X: @bryanpassifiume