As Canada teeters on the edge of what could be its first nationwide postal strike in years, businesses across the country are quietly making contingency plans that might become permanent shifts in how Canadians send and receive parcels.
Walking through Toronto’s Queen Street West yesterday, I noticed something telling – three small business owners putting up handwritten signs in their windows advising customers about shipping delays. One shop owner, Mariam Tehrani, who runs a boutique jewelry store, didn’t mince words.
“We’ve already switched most of our deliveries to Canpar and UPS,” Tehrani told me while packaging a delicate necklace. “It’s costing us more, but we can’t risk having orders sitting in a warehouse during Christmas rush. Some of my customers have been with me for a decade – I won’t let them down.”
This sentiment echoes across the country as the clock ticks down on negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW). The union, representing roughly 55,000 workers, has been in talks since last November, with key sticking points around wages, working conditions, and job security.
Data from the Canadian Federation of Independent Business suggests nearly 40% of small businesses rely heavily on Canada Post for their shipping needs. That dependency is now causing widespread anxiety as the strike deadline approaches.
In Winnipeg, Darren Praznik, who manages a specialty food export company, has been watching the situation closely. “We’ve diverted about 70% of our shipments to alternative carriers in the last two weeks,” he explained. “The margins are thinner, but our reputation with customers can’t have a price tag.”
The federal Labour Minister, Seamus O’Regan, stated yesterday that the government is “monitoring the situation closely” but has yet to indicate whether back-to-work legislation might be considered if talks break down. O’Regan’s office released a statement encouraging both parties to “work collaboratively toward a resolution that supports workers while ensuring Canadians and businesses can continue to rely on postal services.”
Canada Post spokesperson Valerie Chartrand emphasized that negotiations are ongoing. “We remain committed to reaching a negotiated settlement that provides fair working conditions for our employees while ensuring we can continue serving Canadians at reasonable rates,” she said in an email statement.
But the patience of Canadian businesses appears to be wearing thin. Many remember the rotating strikes of 2018, which caused significant disruptions during the critical holiday season.
Jean-Marc Léger, president of Léger Marketing, notes this potential strike comes at a particularly vulnerable time. “Canadian consumer confidence is already shaky with inflation and interest rates. Any disruption to the delivery infrastructure adds another layer of uncertainty for both businesses and consumers.”
What’s different this time is the expanded ecosystem of delivery alternatives. Since the last major postal disruption, companies like Intelcom, Amazon Logistics, and various regional carriers have expanded their Canadian footprints substantially.
In Edmonton, the shift is already visible. Jason Kemmere, whose family has operated a sporting goods store for three generations, has completely revamped their shipping strategy.
“We’ve partnered with three different carriers now,” Kemmere explained while showing me his newly organized shipping station. “It’s actually made us more resilient. We used to put all our eggs in the Canada Post basket because it was easiest. Never again.”
The timing couldn’t be worse for Canada Post, which has faced increasing competition from private couriers while dealing with declining letter mail volumes. According to their 2022 annual report, the Crown corporation delivered 2.8 billion fewer pieces of mail last year compared to a decade ago.
For consumers, especially those in rural areas where alternative delivery options are limited, a postal strike creates genuine concern. The distribution of government checks, prescription medications, and legal documents often still relies on traditional mail service.
In Gaspé, Quebec, community organizer Marie-Claude Beaulieu worries about vulnerable populations. “We have seniors who receive their pension cheques and medication by mail. The digital alternatives don’t work for everyone here, especially with spotty internet service.”
While the immediate concern is the potential strike, the longer-term question is whether Canada Post can recapture market share once businesses establish new relationships with alternative carriers.
E-commerce expert Harley Finkelstein, who advises several Canadian retailers, believes we’re witnessing a watershed moment. “Five years ago, a Canada Post disruption would have been catastrophic for online sellers. Today, it’s an inconvenience that accelerates an already ongoing transition to a more diverse delivery ecosystem.”
Back in Toronto, as I left Tehrani’s jewelry shop, she made a point that seems to capture the sentiment of many Canadian business owners: “I love our postal workers, and I understand they need fair treatment. But my business can’t be collateral damage in these negotiations. Once we establish new shipping partners and our customers get used to it, there’s little incentive to switch back.”
As both sides continue negotiations, what’s becoming clear is that regardless of whether a strike actually materializes, the mere threat has already reshaped Canada’s delivery landscape. And those changes might be impossible to undo once the dust settles.
