Canada Post strike has cost small businesses $765M: CFIB

The ongoing Canada Post strike is having a significant impact on Canadian businesses during the busy holiday shopping season, costing firms at least $76.6 million per day, according to the Canadian Federation of Independent Business.

After 17 days of a nationwide Canada Post strike, small- and medium sized businesses have lost out on an estimated $765 million in earnings, CFIB said in a statement on Monday.

If the strike continues, it will have cost the sector more than $1 billion by Wednesday, the group warned.

More than 55,000 Canada Post workers went on strike on Nov. 15, halting mail and parcel services across the country. Some post offices have also been shuttered amid the job action.

There are calls from some, including CFIB, urging the federal government to step in to end the labour disruption.

“It’s not Grinch who is about to steal Christmas,” Corinne Pohlmann, executive vice-president of advocacy at CFIB, said in a statement.

“It’s Ottawa sitting idly on the sidelines while small businesses are losing crucial revenue and sales due to circumstances outside of their control.”

CFIB wants the federal government to either impose binding arbitration or introduce back-to-work legislation.

1:14 Canada Post strike: Feds support negotiations ‘all the way’ as talks deadlocked

Last week, Labour Minister Steven MacKinnon pressed both Canada Post and the Canadian Union of Postal Workers (CUPW) to urgently find a solution after mediated talks were temporarily suspended Wednesday.

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MacKinnon told reporters on Nov. 27 that binding arbitration was “not in the cards” right now, but he did not rule out going that route if no progress is seen.

CFIB’s Pohlmann said MacKinnon “is the one who has the power to put an end to this mess.”

Three quarters of small businesses have been negatively impacted by the postal strike, CFIB estimates.

“Small firms have already missed the most important sales weekend of the year, with Black Friday, Small Business Saturday and Cyber Monday,” Pohlmann said.

“If the strike isn’t settled this week, Canada Post will not be a player for the entire holiday season given the backlog it will have to sort through before taking on new business.”

1:49 Canada Post labour action news strikes fear into online retailers

Meanwhile, online Black Friday sales in Canada have dipped by six per cent compared to last year, according to data from Salesforce, a U.S. cloud-based software company.

“The double whammy of the Canada Post strike and fewer enticing discounts is putting a chill on Black Friday fever up north,” said Caila Schwartz, director of consumer insights at Salesforce.

“With deliveries in disarray and bargains lacking bite, shoppers are hesitating—and online sales are feeling the sting.”

On Monday, the U.S. Postal Service also temporarily suspended Canada-bound mail due to the Canada Post strike.

U.S. customers are being asked to refrain from mailing items to Canada, until further notice.

Canada Post said in a statement on Sunday that it had presented the union with a “comprehensive framework for reaching negotiated agreements” and that it remained committed to finding a resolution to the labour dispute.

“It is our hope that these proposals will reignite discussions and, together with the support of mediators, help the parties work toward final agreements,” Phil Legault, a Canada Post spokesperson said.