Small business owners across Canada are scrambling to develop contingency plans as negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) have stalled, raising the possibility of a nationwide postal disruption as early as next week.
For Halifax-based Adriana Morales, who ships handmade jewelry through her online store to customers nationwide, the timing couldn’t be worse. “June is typically our second-busiest month of the year,” she told me during a phone interview. “A postal strike now means I either find alternatives that cost significantly more or watch my business take a serious hit.”
Canada Post delivered more than 2.5 billion parcels last year according to their annual report, and despite the growth of private delivery services, remains the backbone of e-commerce logistics for thousands of small Canadian retailers. The crown corporation handles approximately 65% of e-commerce deliveries across the country, particularly in rural and remote areas where alternative services charge premium rates—if they deliver at all.
As tensions escalate between management and the union representing 50,000+ postal workers, businesses that rely on affordable shipping are being forced to navigate unfamiliar territory. The main sticking points in negotiations include wage increases, workplace safety concerns, and job security guarantees as Canada Post continues its modernization efforts.
“We’ve been through this before,” notes Retail Council of Canada spokesperson Marie Charbonneau. “But this potential disruption comes at a particularly vulnerable time for small businesses still recovering from pandemic-related challenges and dealing with inflationary pressures on their supply chains.”
For Kelowna-based bookseller Thomas Renwick, who ships hundreds of titles monthly through his independent online bookstore, the strike threat means establishing relationships with courier services that typically charge 30-40% more than Canada Post’s small business rates.
“I’ve been calling FedEx, UPS, and Purolator to negotiate temporary arrangements,” Renwick explains. “But my margins are already tight. I’ll either need to increase prices and risk losing customers or absorb costs that will effectively eliminate my profits for however long this lasts.”
The federal government has not yet indicated whether it would intervene with back-to-work legislation, as it has during previous postal disputes. Labour Minister Seamus O’Regan stated earlier this week that the government “encourages both parties to continue negotiating in good faith,” but stopped short of promising intervention.
According to data from the Canadian Federation of Independent Business (CFIB), approximately 41% of small businesses still rely primarily on Canada Post for shipping needs. This dependence is even higher in rural communities where alternative services often charge significant rural delivery surcharges.
Diane McBain runs a small publishing company in Thunder Bay that ships educational materials to schools and libraries across Northern Ontario. “Private couriers charge anywhere from $25 to $45 more per shipment to reach communities like Red Lake or Sioux Lookout,” she says. “Those costs would bankrupt me if a strike lasts more than a couple of weeks.”
Some businesses are turning to technology solutions and partnerships to weather the potential disruption. Montreal-based e-commerce platform ShipQuick has seen a 78% increase in new signups over the past week from small businesses seeking help navigating alternative shipping arrangements.
“We’re helping merchants batch orders to qualify for better rates with couriers and facilitating local pickup options,” explains ShipQuick founder Jean-Philippe Tremblay. “Many of these businesses have never had to think beyond Canada Post before.”
The most vulnerable businesses appear to be those in subscription-based models that ship regular packages to customers. Winnipeg’s Northern Harvest, which delivers monthly boxes of locally-made food products, is temporarily shifting to regional pickup points to avoid delivery interruptions.
“We’re contacting customers now to arrange alternative delivery at local partner businesses,” says co-owner Sarah Jankiewicz. “It’s not ideal, but it prevents subscription cancellations and preserves relationships we’ve worked hard to build.”
For consumers, the potential disruption means potential delays in receiving everything from online purchases to government checks and utility bills. Financial institutions are encouraging customers to switch to electronic statements and payments, while government agencies have issued notices regarding potential delays in services typically delivered by mail.
Canada Post spokesperson Melanie Chartier emphasized that negotiations are ongoing, and no work stoppage is guaranteed. “We remain committed to reaching a negotiated settlement that’s fair to our employees while ensuring Canada Post remains financially viable and competitive in a rapidly evolving market,” she said in an emailed statement.
CUPW president Jan Simpson countered that the union’s demands focus on fair compensation for increasingly difficult working conditions. “Our members handled record parcel volumes throughout the pandemic while dealing with insufficient staffing and outdated facilities,” Simpson noted in a press conference yesterday. “The corporation’s profits should be reflected in fair contracts for the workers who generate that value.”
As the clock ticks toward a potential disruption, small business advocacy groups are providing resources to help their members navigate alternative shipping arrangements. The CFIB has published an emergency shipping guide, while regional chambers of commerce are organizing information sessions about contingency planning.
For consumers wanting to support small Canadian businesses during this uncertain period, patience and flexibility will be key. Many independent retailers are adding prominent notices to their websites explaining potential shipping delays and asking for understanding as they navigate unfamiliar logistics challenges.
“We’re all just doing our best to keep serving customers through yet another challenge,” says Morales, the Halifax jeweler. “After surviving a pandemic and supply chain chaos, a postal strike feels like one more hurdle we’ll have to clear. But it’s certainly not making things any easier.”
