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Businesses swap shipping companies while Canada Post work stoppage looms

Click to play video: 'Calgary businesses and people prepare for Canada Post job action'
Calgary businesses and people prepare for Canada Post job action
WATCH ABOVE: Global’s Sarah Offin takes a look at how businesses and people are preparing for possible job action at Canada Post – Jul 6, 2016

Local businesses and courier companies are making contingency plans to deal with a possible work stoppage looming at Canada Post.

Canada Post and the Canadian Union of Postal Workers are in the midst of negotiating a new contract.

READ MORE: Canada Post, union have no talks planned as deadline approaches 

Canada Post says a 72-hour notice delivered to the union on Tuesday does not necessarily mean it will shut down on Friday. CUPW has vowed to not go on strike and stay at the bargaining table.

But the uncertainty is taking a toll on both Canada Post and other companies they do business with.

Calgary company, routine., makes and ships natural deodorants across Canada and around the globe. It says the potential labour disruption has been a hard hit for the company’s bottom line.

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“Right now we’re paying almost four times as much with other shippers,” Neige Blair, the owner of routine. said Wednesday.

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For four years, routine. has shipped through Canada Post. But uncertainty with the country’s primary postal operator has them swapping couriers to make sure their products don’t end up in limbo.

“The costs are going to be exorbitant. When we’re shipping within Canada with small packages… [Canada Post] is quite a bit cheaper. It’s going to affect our retailers,” Blair said. “They’re not going to get their shipments as quickly. Also the cheque that they’re sending us – we’re going to have to set up new methods of payment – which is a headache.”

Other large retailers like Walmart and Hudson’s Bay Company have also found other shipping options.

“HBC is focused on maintaining service levels for our customers,” the company said in a statement.  “We have an alternate home delivery provider in place to continue serving thebay.com, however, there may (be) some delays to our regular shipping timelines.”

As a result, private courier companies are seeing a big increase in shipping volume.

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Customers calling Loomis Express will hear the following voice message: “Due to the Canada Postal strike, we are anticipating higher than average calls and wait times.”

Purolator and FedEx both said they have contingency plans to hire more staff and institute overtime hours, should a work stoppage occur.

UPS said it already hired 300 new staff.

The federal government has said it will stay out of a looming work stoppage for now. That leaves the onus on Canada Post and the union to come to an agreement quickly, before mail deliveries come to a halt.

-With files from The Canadian Press

 

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