Canada Post Strike Is Costing Small Businesses $76 Million Per Day, Industry Group Reports
The ongoing Canada Post strike has inflicted substantial financial damage on small and medium-sized businesses, with losses mounting to $765 million in its first two weeks, according to the Canadian Federation of Independent Business (CFIB). The organization warns that costs could exceed $1 billion by Wednesday if the labor dispute continues.
The strike’s impact has been widespread, affecting 75% of small businesses across Canada. Among those affected, 41% have reported costs averaging $2,000 from lost orders, expensive alternative delivery options, delayed payments, and limited ability to promote their businesses during the crucial holiday season.
Read: Canada Post Starts Layoffs, Union Calls it ‘Scare Tactic’
CFIB Executive Vice-President of Advocacy Corinne Pohlmann criticized the government’s response to the crisis, noting in a statement that while the Labour Minister has acknowledged the significant gap between the parties in mediation talks, Ottawa has the authority to resolve the situation.
Read: Canada Post Strike Continues As Government Refuses To Intervene
The strike’s effects are being felt across various sectors, the CFIB notes. In Alberta, a bookkeeping service reports having funds trapped at post offices, as their receivables from insurance companies rely on mail delivery. An Ontario consulting firm has been forced to absorb increased shipping costs to maintain client relationships. In Prince Edward Island, a seed supplier with an 86-year history of using Canada Post services faces storage fees for 270,000 undeliverable catalogs and anticipates reduced Christmas orders.
With 69% of small business owners supporting back-to-work legislation, CFIB is pressing the government to either impose binding arbitration or introduce such legislation to salvage what remains of the holiday shopping season.
The timing of the strike has been particularly damaging, as businesses have already missed crucial sales opportunities during Black Friday, Small Business Saturday, and Cyber Monday. Pohlmann warns that even if the strike ends this week, Canada Post’s extensive backlog will likely prevent normal operations throughout the holiday season.
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