Small business owners in Alberta say a strike by the Canadian Union of Postal Workers at the busiest time of year would be “devastating’ for retailers.
On Tuesday (Nov. 12, 2024) CUPW announced it had filed 72-hour strike notice against Canada Post.
In an interview with Global News, the vice-president of the Retail Council of Canada, Matt Poirier, said for many small businesses the possibility of a postal strike during the busy holiday shopping season could determine if they survive financially.
“When the margins are thin, as they are in the retail business, it really makes them unviable as an option, and Canadians end up paying for these costs (because) retailers have to recoup these costs in their prices.”
Those concerns are echoed by the owner of Marley Sew Co – an Edmonton-based online retailer selling hair scrunchies.
Marley Anne Clubine-Piggott said “Canada Post is the cheapest shipping method to use, especially for small businesses, and it really helps with the profit margin.”
Clubine-Piggott said if there is a postal strike she “will be forced to either increase the cost or find alternative routes to sell things” to her online customers.
She’s concerned that could result in a loss of business to much larger online retailers like Amazon.
Barbara Backman, owner of ROWE, a Calgary-based ethically-sourced clothing company tells Global News 90 per cent of her sales are sold and shipped to online customers.
While Backman does use other shipping methods, she said Canada Post is often the cheapest option.
“People don’t really understand the cost of shipping from Alberta to the Atlantic provinces or Northwest Territories,” said Backman. “Those are the places we use Canada Post the most because they tend to be the least expensive option.”
If Canada Post and its unionized members fail to resolve their contract differences by 2 a.m. MT on Friday, this sorting centre and other operations at the Crown corporation could grind to a halt.
The threat of a strike already appears to be having an impact on the number of retailers using Canada Post.
In a statement, the crown corporation said parcel delivery volumes have already declined by 28 per cent, following news the union had voted earlier this month in favour of possible strike action.
Canada Post estimates that amounts to 1.3 million parcels, or more than a day’s worth of deliveries.
After almost a year of bargaining, the two sides appear to remain far apart on many issues, including wages, benefits, health and safety, and scheduling.
Wycliffe Oduor, president of CUPW Local 710 in Calgary, told Global News that members “have been waiting for way too long to get a contract,” so the strike notice will “help extradite the issues that are on the table so we can get a negotiated contract.”
Asked about the impact of a potential strike, Wycliff said: “This is why we are in this position right now, it is to address service delivery for the public, and it is important that Canada Post comes to the table with a plan to actually proceed with that.”
The strike notice means CUPW will be in a legal position to strike on Friday at 10:01 p.m. MT (12:01 a.m. ET).
Canada Post said the union has also been notified that if new agreements are not reached by that time, the current collective agreements will no longer apply.