With 55,000 Canada Post workers poised to walk off the job in days, business groups say another strike would have a devastating impact on companies already reeling from U.S. President Donald Trump’s global trade war.
Postal workers could strike as of 12:01 a.m. Friday which would resume the 32-day walkout which was paused in December.
The Crown corporation is expected to present another contract offer to the Canadian Union of Postal Employees ahead of the deadline, likely on Wednesday.
This time, the impact of a strike could be even harsher for retailers who are now also dealing with the impact of Trump’s tariffs, said Matt Poirier, vice president of government relations for the Retail Council of Canada.
“It’s funny how we thought last time it really couldn’t get worse,” said Poirier. “But the timing with the tariffs? We’re almost there.”
Last year’s walkout came during the busy holiday period when many retailers ship holiday gifts to customers across the country.
Over the weekend, the Canadian Union of Postal Workers launched an advertising blitz slamming a report from veteran mediator William Kaplan delivered last week, and also took to their own website to criticize the report.
“Commissioner Kaplan’s report of the Industrial Inquiry Commission skews heavily in favour of Canada Post’s positions and recommendations,” CUPW national president Jan Simpson said in an open letter to members. “We fundamentally disagree with the bulk of its recommendations and challenge some of the information on which it was based.”
Tuesday, the union said it still hoped to reach a negotiated settlement.
“We remain committed to negotiating collective agreements,” the union said in a notice on its site, “and urge the employer to do the same.”
Kaplan’s report said Canada Post was effectively insolvent, and suggested the use of community mailboxes, the elimination of home delivery except for parcels, and getting rid of some post office locations and replacing them with franchises.
Kaplan also suggested expanding parcel delivery to seven days a week, with the use of part-time employees.
Kaplan was also pessimistic about the prospect of a negotiated settlement between the two sides, and added that binding arbitration was also not likely to provide a lasting solution.
Ahead of Kaplan’s report, Canada Post paused negotiations, but said Tuesday it hopes to get back to the bargaining table.
“We have been using the pause to prepare comprehensive offers,” Canada Post spokesperson Jon Hamilton said in a written statement. “We are hoping to meet with the union this week to present the offers.”
Kaplan delivered the official report from his Industrial Inquiry Commission to the federal government, including Patty Hajdu, minister of jobs and families, and John Zerucelli, secretary of state for labour.
In December, Kaplan was appointed to run the commission by then-federal labour minister Steven MacKinnon.
At the same time, MacKinnon asked the Canada Industrial Relations Board (CIRB) to declare an impasse in contract talks.
The CIRB did just that, and workers were ordered back on the job Dec. 17, temporarily pausing a month-long strike.
While volumes of letter delivery have nosedived in recent years, many businesses still rely on Canada Post for everything from delivering packages to customers, to receiving and delivering payments, said Dan Kelly, CEO of the Canadian Federation of Independent Business.
“They send a paper invoice in the mail and then get a cheque back,” said Kelly. “One of the first things we hear when there’s a strike is that money has been frozen in the mail, that they need to pay their bills.”
Many small businesses also rely on Canada Post to send packages to customers, or deliver flyers as a low-cost marketing option, Kelly added.
“Many consumers have moved away from using Canada Post,” said Kelly, “but small businesses are some of their last reliable customers.”
Even though there are other courier companies available, in the event of a strike, those companies are more likely to service their existing clients, or large corporations, rather than new, small business customers, said Kelly.
“We saw it happen last time. They will opt first to fulfil their large, national contracts. And second, they’ll go to existing customers,” Kelly said.
The month-long strike last year cost small businesses at least $1 billion, said Kelly, citing CFIB studies.
With the economy already sputtering, another strike is something the country can ill afford, said Pascal Chan, vice president of strategic policy at the Conference Board of Canada.
“The economy is hurting and further work stoppages would be another blow to our supply chains,” said Chan. “Millions of Canadians and businesses, especially entrepreneurs and small businesses engaged in e-commerce, count on Canada Post. In rural, northern, or remote areas, in order to ship products, there can often be no alternative to Canada Post’s services.”
