Canadian businesses are worried about the impact a potential Canada Post labour disruption will have on the country’s economy.
“As representatives of Calgary’s business community, we are deeply concerned about the potential for strike and lockout action between Canada Post and the Canadian Union of Postal Workers. A strike at this time would create far-reaching disruptions for Calgary businesses, especially as we approach the crucial holiday season,” said Deborah Yedlin, President and CEO at the Calgary Chamber of Commerce.

“Small and medium-sized businesses — comprising 95% of all businesses in Calgary and 98% across Canada — depend on Canada Post for affordable, reliable shipping. A strike would create delays in deliveries, disrupt cash flow, add to debt burdens and hinder growth potential. For many, this season accounts for a significant portion of annual revenue, and a disruption now could prove costly. Increased operational expenses from turning to alternative courier services would only heighten existing cost pressures on small businesses.
“Rising costs are already a top barrier to growth, and we must do everything possible to support our business community through this critical season. We urge all parties to reach a swift, fair resolution, and we call on policymakers to explore contingency measures that protect Calgary’s economy, so businesses can thrive, and customers can count on reliable service.”
The Canadian Union of Postal Workers (CUPW) said it has received notices from Canada Post Corporation that postal workers will be locked out of work as of 8:00 am (EST) on November 15, if agreements cannot be reached for the Urban Postal Operations and Rural and Suburban Mail Carriers (RSMC) bargaining units.
These notices come eight hours after CUPW issued its own 72-hour strike notice.
“Our goal has always been to reach negotiated collective agreements that support the long-term success of our public post office, while addressing the real issues our members face daily,” said Jan Simpson, CUPW National President. “Canada Post has the ability to make that happen without any job action, but it needs to come to the bargaining table and resolve both new and longstanding issues.”
In a news release, Canada Post said: “The negotiations come at a critical juncture for Canada Post as the Corporation grapples with the significant financial and operational challenges of delivering in today’s highly competitive parcel delivery market. In the first six months of 2024, the company recorded a loss from operations of $490 million. From 2018 to 2023, it lost $3 billion.
“It is critical that both parties focus their energies on resolving outstanding issues to reach negotiated agreements. A labour disruption would have significant consequences for the millions of Canadians who rely on Canada Post while deepening the company’s already serious financial situation, as customers move their holiday shipments to other carriers.”
The Government of Canada said it understands how important it is for Canadians to continue to receive the benefits and services they need in the event of a Canada Post labour disruption. It is encouraging all Canadians to set up a My Service Canada Account (MSCA) and sign up for direct deposit if they have not done so already. Signing up for direct deposit will ensure the timely delivery of benefits, as the delivery of physical cheques by mail may be impacted in the event of a Canada Post labour disruption. Through MSCA, clients can access many services for the benefits they receive from home.

“Our government knows that Canadians count on receiving their benefits and accessing services smoothly, regardless of any disruptions. With the online service delivery infrastructure we’ve built, Canadians have more options to access these benefits and services quickly and reliably online. We are dedicated to ensuring every client can get what they need, whether it’s through direct deposit, online support, or our in-person centres. Our government is here to support you every step of the way, making sure there are no delays or added stress,” said Minister of Citizens’ Services, Terry Beech.
On Tuesday, the federal government finally stepped in and ordered binding arbitration to get the Port of Montreal and BC ports fully operational after their labour disruptions.

In a post on social media channel X, Dan Kelly, President and CEO of the Canadian Federation of Independent Business, said: “So small retailers will be . . . unable to use Canada Post to ship products to their customers. For many businesses, 25-40% of their annual sales are in the 6 weeks leading up to Christmas. We need to wake up the federal govt!”

Jasmin Guenette, VP of national affairs for the CFIB, said: “Many small businesses still use Canada Post to send payments and receive invoices. In the leadup to the holiday season, we also worry that many small firms won’t be able to ship their goods to customers, especially those in rural and remote communities as they may not have alternative options. The six weeks before Christmas is a crucial period for small businesses, and many count on it to end the year in the black. A postal disruption will be devastating for small businesses, and we urge all parties to quickly reach a deal.”
Prior to the federal government move, the Retail Council of Canada released the following statement: “With container traffic halted at the Ports of Montreal and Vancouver and a potential strike looming at Canada Post, Canadian retailers are bracing for an unprecedented triple-threat labour disruption. The impact is staggering: key holiday shipments are delayed, ships carrying essential goods are being rerouted across North America, and supply chain ripple effects are already causing trains to grind to a halt. All this is unfolding during the critical holiday season, when every delivery counts.
“Retail Council of Canada (RCC) is calling on the government to act swiftly. The stakes are high: without immediate intervention to resolve port work stoppages, retailers warn of empty shelves, severe product shortages, and rising costs for consumers. RCC is urging decisive government action to keep our transportation networks moving and ensure Canadians don’t bear the brunt of these disruptions.”
In August, Canada Post recorded a profit before tax of $46 million in the second quarter of 2024, as the divestiture of SCI Group Inc. and Innovapost Inc. contributed to the segment’s bottom line and offset a loss from operations of $269 million, it said.
“A crowded and highly competitive ecommerce delivery market continued to impact Parcels revenue in the first and second quarters of 2024. Transaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up,” said Canada Post in a news release.
“The Corporation’s profit before tax in the second quarter improved by $300 million compared to a loss before tax of $254 million in the second quarter of 2023, largely due to dividend income from the sale of SCI and Innovapost. As a result of the divestitures of SCI and Innovapost, the segment’s loss before tax in the first two quarters was $30 million, compared to a loss before tax of $361 million in the first half of 2023.
“Canada Post’s revenue in the second quarter was relatively flat compared to the same period a year earlier. For the first half of 2024, Canada Post’s revenue fell slightly by $48 million, or 1.4 per cent,1 compared to the same period of the prior year.
“In the second quarter and the first six months of 2024, total operating costs increased by 0.9 per cent and 1.9 per cent, respectively, compared to the same periods of the prior year. This was mainly due to higher employee benefit costs driven by lower discount rates. The increase in costs was partly offset by lower non-capital investments.
“The Corporation recorded a loss from operations of $269 million in the second quarter, compared to a loss from operations of $259 million in the same period of the prior year. In the first six months of 2024, the loss from operations was $490 million, compared to $371 million in the same period of 2023. The loss from operations excludes any dividends from the divestitures.”
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