As Canada Post workers edge closer to a potential strike, small businesses across the country are scrambling to develop contingency plans. The Crown corporation’s operations could grind to a halt as early as November 15th if ongoing negotiations between management and the Canadian Union of Postal Workers fail to produce an agreement.
For Toronto-based greeting card designer Melanie Chen, who ships hundreds of handcrafted products weekly, the timing couldn’t be worse.
“November and December represent about 40% of my annual revenue,” Chen tells me from her studio in Toronto’s Junction neighborhood. “I’ve already started warning customers about possible delays and am testing alternative shipping methods. The costs are significantly higher.”
Chen isn’t alone. A recent survey by the Canadian Federation of Independent Business suggests that 67% of small business owners consider postal services “critical” or “very important” to their operations. Many are now confronting the reality of having to switch to private courier services that typically charge 30-40% more than Canada Post’s small business rates.
The potential disruption comes at a particularly challenging moment. Small businesses are still recovering from pandemic-related setbacks, facing inflation pressures, and preparing for the crucial holiday shopping season. For many, the postal service represents the most cost-effective shipping solution—especially for lightweight items under two kilograms.
“We’ve become so dependent on reliable, affordable shipping,” explains Marvin Thomas, owner of Bookworm Boutique in Halifax. “Switching to UPS or FedEx overnight means I’ll either have to absorb those extra costs or pass them along to customers who are already watching their spending carefully.”
The Canada Post dispute centers around wages, working conditions, and job security—issues that have created tension between the Crown corporation and its workforce for years. Management maintains that structural changes are necessary as letter mail volumes continue to decline while parcel deliveries increase due to e-commerce growth.
For their part, postal workers argue that increasing workloads without proportional compensation increases have pushed many to their limits. According to union representatives, mail carriers now deliver significantly more parcels on each route compared to five years ago.
The standoff has accelerated a trend that was already underway: businesses diversifying their shipping options beyond Canada Post. E-commerce platform Shopify reports that merchants using their services have increased adoption of alternative carriers by 27% over the past six months, likely in anticipation of potential disruptions.
“We’re seeing small businesses become much more sophisticated in their logistics planning,” notes Ellen Rodriguez, supply chain analyst at RBC Capital Markets. “Many are splitting their shipping volume between multiple carriers or adopting hybrid models where local deliveries might be handled differently than national or international ones.”
Some entrepreneurs are getting creative. Montreal-based subscription box service Boreal Brews has organized local pickup points where customers can collect their monthly coffee deliveries if postal service is interrupted. Owner Jean-Philippe Lavoie has even enlisted friends with vehicles to help with local deliveries in a pinch.
“You adapt or you lose customers,” Lavoie says. “We’re looking at this as an opportunity to connect more directly with our Montreal subscribers, though it’s definitely more labor-intensive.”
Digital businesses face different challenges. While software companies don’t ship physical products, many rely on Canada Post for sending invoices, legal documents, or promotional materials. Some government services still require postal mail for certain communications or document submissions.
The federal government has urged both sides to reach an agreement and avoid disruption. Minister of Labour Randy Boissonnault recently stated that negotiated solutions are “always the best outcome,” though he stopped short of suggesting back-to-work legislation—a controversial measure that has been used in previous postal disputes.
For consumers, the potential strike raises questions about holiday shipping. Delivery timelines that seemed reasonable in October may become impossible if service interruptions extend into late November or December.
“This is when I tell clients to have backup plans for their backup plans,” says logistics consultant Maria Fernandez. “If you’re a business shipping physical products, you need to communicate clearly with customers about potential delays and consider offering digital gift options where possible.”
Some businesses are accelerating shipments ahead of the potential strike date. Online retailers report increased order volume as customers try to beat the deadline, creating a mini-surge that strains fulfillment operations.
There are potential winners in this scenario. Private courier companies stand to gain significant business during any Canada Post service interruption. UPS Canada has reportedly increased staffing at key sorting facilities, while smaller regional couriers are fielding inquiries from businesses they’ve never worked with before.
Digital service providers offering electronic invoicing, virtual gift cards, and document signing solutions also expect increased adoption if postal disruptions persist. DocuSign and similar platforms have seen usage spikes during previous mail interruptions.
For small businesses already operating on tight margins, however, the coming weeks represent a significant challenge. Additional shipping costs, time spent researching alternatives, and potential lost sales due to delivery concerns all impact the bottom line.
“The most frustrating part is the uncertainty,” says Chen, who’s now considering driving some local deliveries herself. “We can plan for higher costs, but not knowing how long this might last makes it impossible to communicate accurately with customers.”
As both sides continue negotiations, the clock ticks toward what many small business owners describe as the worst possible timing for disruption. With some analysts suggesting the dispute could extend into December, many are left hoping for a resolution while preparing for weeks without the postal service they’ve built their operations around.
