The rotating strikes at Canada Post have businesses scrambling for alternatives, with many shifting their shipping strategies toward private courier services despite the higher costs. As disruptions enter their second week, the ripple effects are spreading through Canada’s business community, especially hitting smaller operations that rely heavily on affordable postal services.
“We’re basically operating in crisis mode,” says Melissa Chen, who runs a Toronto-based handcrafted jewelry business that ships nationwide. “My margins are already tight, and now I’m paying three times more to get products to customers through private couriers.”
The Canadian Union of Postal Workers (CUPW) began its rotating strikes on October 31, creating sporadic service interruptions across major urban centers. Unlike a full strike, these targeted work stoppages create unpredictable delivery gaps that businesses find particularly challenging to navigate.
For Chen and thousands of small business owners like her, the timing couldn’t be worse. “We’re heading into the holiday shopping season, which makes up about 40% of my annual revenue. I can’t afford delivery delays or disappointed customers.”
The Federation of Canadian Independent Business (FCIB) reports that approximately 60% of small businesses are feeling “significant” or “very significant” impacts from the postal disruption. Their recent survey of members indicates that nearly half are absorbing the extra shipping costs rather than passing them on to customers, further squeezing already tight margins.
“Small businesses operate on much thinner profit margins than larger corporations,” explains Omar Hassan, an economist at Rotman School of Management. “When shipping costs suddenly jump from $15 to $45 for a package, that might completely eliminate any profit on lower-priced items.”
While large retailers with established logistics networks can weather the storm, small and medium enterprises are disproportionately affected. E-commerce businesses that built their models around Canada Post’s affordable rates face particular challenges.
“Canada Post’s pricing structure has been fundamental to many online business models,” says Rachel Wong, founder of ShipSmart, a shipping logistics consultancy. “Entrepreneurs have built entire calculators and workflows around these rates. When that system breaks down, it’s not just an inconvenience—it’s potentially existential for some businesses.”
The shift to private couriers like UPS, FedEx, and Purolator provides reliability but at a cost. Many smaller courier companies report being overwhelmed with new customer inquiries, creating capacity issues of their own.
Barry Goldstein, who runs a bookstore in Halifax, has reluctantly switched to a patchwork of delivery options. “I’m using FedEx for urgent shipments, local delivery services where I can, and I’ve even started offering in-store pickup with discounts to incentivize customers to come in person.”
The disruption has also highlighted Canada’s unique geographic challenges. While urban businesses have multiple shipping alternatives, rural businesses face far fewer options—sometimes with no viable alternatives to Canada Post.
“In northern communities, Canada Post is often the only game in town,” notes Darlene Suarez, policy director at the Canadian Chamber of Commerce. “When service is disrupted, these businesses effectively lose their connection to the broader market.”
Meanwhile, digital businesses that ship physical products are racing to implement contingency plans. Subscription box services, which operate on precise monthly delivery schedules, face particular challenges.
“We’ve had to completely overhaul our fulfillment process,” explains Jordan Kwak, co-founder of GreenBox, a monthly sustainable products subscription service. “We’re batching shipments differently, staggering delivery dates, and communicating constantly with customers. Our shipping costs have increased by 78% overnight.”
Some businesses are turning to technology solutions. Shopify has reported increased adoption of its multi-carrier shipping options as merchants seek to diversify their logistics strategies. Other businesses are leveraging social media to coordinate local pickup options or forming informal cooperatives to share delivery costs.
The labour dispute centers around wages, working conditions, and health benefits, with both sides indicating continued willingness to negotiate. Labour Minister Steven MacKinnon has appointed a special mediator, but there’s no clear timeline for resolution.
For businesses caught in the middle, the uncertainty compounds the challenge. “The hardest part is not knowing when this ends,” Chen says. “Do I completely rebuild my shipping strategy for the long term, or will this be resolved next week? Every day I wait to decide costs me money and customers.”
As the holiday season approaches, the stakes continue to rise. Retail analysts estimate that delays beyond mid-November could significantly impact seasonal shopping patterns, potentially pushing more consumers toward large marketplaces with established logistics networks—further disadvantaging small businesses.
The situation highlights the delicate balance between labour rights and economic impacts, particularly for the small businesses that form the backbone of Canada’s economy. As negotiations continue, thousands of entrepreneurs across the country watch anxiously, calculating costs and crafting contingency plans while hoping for a swift resolution.
