As the threat of a Canada Post strike or lockout looms, Canadians are likely wondering if their holiday mail will arrive on time, while businesses look for alternatives for their parcel delivery needs.
Canada Post issued a lockout notice Tuesday after the Canadian Union of Postal Workers (CUPW) gave the Crown corporation strike notices for both the urban operations unit and the rural and suburban mail carriers (RSMC) unit.
As the labour negotiations continue, a Canada Post spokesperson told Global News the company does not plan to cease operations at this time, but it could make changes to its operations starting Friday.
Amid the uncertainty of a job action at the national postal service, other courier services are already preparing for an influx of deliveries and making contingency plans.
FedEx said it is hopeful that negotiations between Canada Post and CUPW are resolved amicably.
“Anticipating that the circumstances at Canada Post may trigger an increase in demand for FedEx services, a comprehensive contingency plan is in place to manage volume demands,” James Anderson, a FedEx Canada spokesperson, told Global News in an emailed statement.
“We ask Canadians to plan ahead and understand that we may adjust some of our domestic services to accommodate.”
A UPS Canada spokesperson said: “As discussions continue between Canada Post and the Canadian Union of Postal Workers (CUPW), UPS remains dedicated and prepared to serve the needs of our customers.”
Purolator, which is owned by Canada Post, is also monitoring the situation and has contingency plans in place to manage a possible increase in volume.
Could holiday deliveries cost more?
If Canada Post customers switch to other courier options, they may end up having to pay a bit more, depending on the company, experts say.
Matt Poirier, vice-president of federal government relations for the Retail Council of Canada, said Canada Post is not only one of the cheaper mailing options, it’s also one of the biggest suppliers, particularly for small businesses that rely on it.
For instance, the flat rate charged by Canada Post for a small box is $19.99 and $24.99 for a medium box, according to prices that went into effect in July.
In comparison, the flat rate for FedEx’s small box is at least $20.26 and as low as $25.5 for its medium box.
Purolator recently introduced a flat rate box which starts as low as $15, plus taxes and fees, for provincewide shipping and $20 for the rest of Canada ground shipping. Purolator’s express boxes cost $22 for provincewide shipping and $52 for the rest of Canada.
Sylvia Ng, CEO of ReturnBear, which is an e-commerce platform that enables instant refunds and returns on products, said the switch to other courier companies may seem straightforward for consumers, but not for businesses.
“We can walk to a FedEx location or a Purolator location instead of a Canada Post and off we go. The reality is, it’s a lot harder for businesses to make that adjustment because of the sheer volume and also because of the systems that are in place that are already hooked into Canada Post tech directly.”
Canada Post said the looming job action could impact millions of Canadians and businesses who rely on their service.
The potential work stoppage has retailers worried ahead of the busy holiday season.
“This is one of the main suppliers for parcel delivery for retail, and it couldn’t come at the worst time during the holiday season,” Poirier said.
Ng said merchants are now scrambling to figure out how else they can ship with other courier options to minimize any disruption that could happen potentially starting Friday.
However, she said it’s difficult to plan ahead given that there is no clear indication of if or when the shutdown could occur and what it could look like.
“It’s the ambiguity of not knowing what might happen and at what time, like it’s almost like if you knew the exact timing of everything, you can plan better,” she said.
“When you don’t know … it’s a moving target, essentially.”
Poirier told Global News retailers can turn to alternative mailing companies, but those can be more expensive and consumers can also expect to see some of those cost differences being passed onto them.
“Retailers have options. However, they’re going to be more costly and if everyone’s jumping to the alternate sources of supply, it’s going to drive down availability and increase prices. So that’s the big concern we have in retail right now.”
Poirier said the holiday season is the “busiest time of year for retail” and a Canada Post work stoppage following twin shutdowns at Canada’s largest ports is going to be “really bad news” for the retail sector and for Canadians shopping during the holidays.
“It’s unfortunately the consumer that ends up paying for these delays and these disruptions,” he said.
— with files from Global News’ Anne Gaviola