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Canadian businesses are worried about the impact a potential Canada Post labour disruption will have on the country\u2019s economy.<\/p>\n
\u201cAs representatives of Calgary\u2019s 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,\u201d said Deborah Yedlin, President and CEO at the Calgary Chamber of Commerce<\/strong>.<\/p>\n \u201cSmall and medium-sized businesses \u2014 comprising 95% of all businesses in Calgary and 98% across Canada \u2014 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.<\/p>\n \u201cRising 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\u2019s economy, so businesses can thrive, and customers can count on reliable service.\u201d<\/p>\n The Canadian Union of Postal Workers (CUPW)<\/strong> said it has received notices from Canada Post Corporation<\/strong> that postal workers will be locked out of work as of\u00a08:00 am (EST)\u00a0on\u00a0November 15, if agreements cannot be reached for the Urban Postal Operations and Rural and Suburban Mail Carriers (RSMC) bargaining units.<\/p>\n These notices come eight hours after CUPW issued its own 72-hour strike notice.<\/p>\n \u201cOur 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,\u201d said\u00a0Jan Simpson, CUPW National President<\/strong>. \u201cCanada 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.\u201d<\/p>\n In a news release, Canada Post said: \u201cThe negotiations come at a critical juncture for Canada Post as the Corporation grapples with the significant financial and operational challenges of delivering in today\u2019s highly competitive parcel delivery market.\u00a0In the first six months of 2024, the company recorded a loss from operations of $490\u00a0million. From 2018 to 2023, it lost $3\u00a0billion.<\/p>\n \u201cIt 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\u2019s already serious financial situation, as customers move their holiday shipments to other carriers.\u201d<\/p>\n The Government of\u00a0Canada\u00a0said 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\u00a0My Service Canada Account\u00a0(MSCA) and\u00a0sign up for direct deposit\u00a0if 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.<\/p>\n \u201cOur government knows that Canadians count on receiving their benefits and accessing services smoothly, regardless of any disruptions. With the online service delivery infrastructure we\u2019ve 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\u2019s 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,\u201d said Minister of Citizens\u2019 Services,\u00a0Terry Beech<\/strong>. <\/p>\n On Tuesday, \u00a0the federal government finally stepped in and ordered binding arbitration to get the Port of Montreal and BC ports fully operational after their labour disruptions.<\/p>\n In a post on social media channel X, Dan Kelly, President and CEO of the Canadian Federation of Independent Business<\/strong>, said: \u201cSo 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!\u201d<\/p>\n Jasmin Guenette, VP of national affairs for the CFIB<\/strong>, said: \u201cMany 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\u2019t 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.\u201d<\/p>\n Prior to the federal government move, the Retail Council of Canada<\/strong> released the following statement: \u201cWith 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.<\/p>\n \u201cRetail 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\u2019t bear the brunt of these disruptions.\u201d<\/p>\n In August, Canada Post recorded a profit before tax of $46\u00a0million in the second quarter of 2024, as the divestiture of SCI\u00a0Group\u00a0Inc. and Innovapost\u00a0Inc. contributed to the segment\u2019s bottom line and offset a loss from operations of $269\u00a0million, it said.<\/p>\n \u201cA crowded and highly competitive ecommerce delivery market continued to impact Parcels revenue in the first and second quarters of 2024.\u202fTransaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up,\u201d said Canada Post in a news release.<\/p>\n \u201cThe Corporation\u2019s profit before tax in the second quarter improved by $300\u00a0million compared to a loss before tax of $254\u00a0million 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\u2019s loss before tax in the first two quarters was $30\u00a0million, compared to a loss before tax of $361\u00a0million in the first half of 2023.<\/p>\n \u201cCanada Post\u2019s revenue in the second quarter was relatively flat compared to the same period a year earlier. For the first half of 2024, Canada Post\u2019s revenue fell slightly by $48\u00a0million, or 1.4\u00a0per cent,1<\/sup>\u00a0compared to the same period of the prior year.\u202f<\/p>\n \u201cIn the second quarter and the first six months of 2024, total operating costs increased by 0.9\u00a0per cent and 1.9\u00a0per 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.<\/p>\n \u201cThe Corporation recorded a loss from operations of $269\u00a0million in the second quarter, compared to a loss from operations of $259\u00a0million in the same period of the prior year. In the first six months of 2024, the loss from operations was $490\u00a0million, compared to $371\u00a0million in the same period of 2023. The loss from operations excludes any dividends from the divestitures.\u201d<\/p>\n Related articles:<\/p>\n<\/div>\n![\"Deborah](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2024\/11\/Deborah-Yedlin.jpeg\")
![\"Terry](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2024\/11\/Terry-Beech.jpeg\")
![\"Dan](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2024\/11\/Dan-Kelly.jpeg\")
![\"Jasmin](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2021\/01\/1517588800699.jpeg\")