Group calls on Ottawa to impose binding arbitration or introduce back-to-work legislation
$76 million per day. That’s how much the Canada Post strike is costing Canadian small and medium-sized businesses, according to the Canadian Federation of Independent Business (CFIB).
As of Monday – after 17 days of strike – SMBs have already lost $765 million due to the strike, according to the group.
Overall, the strike has negatively impacted three-quarters of small businesses. Among those, 41% report cost impacts totaling $2,000 in lost orders, more expensive delivery alternatives, late payments and the inability to promote their business at a crucial time of year.
"It's not Grinch who is about to steal Christmas, it's Ottawa sitting idly on the sidelines while small businesses are losing crucial revenue and sales due to circumstances outside of their control,” says Corinne Pohlmann, executive vice-president of Advocacy at CFIB.
Earlier in November, Canada Post issued a lockout notice, though it emphasized that it did not intend to enforce a lockout. Instead, the notice was positioned as a measure to adjust operations in response to the ongoing strike.
However, the Canadian Union of Postal Workers (CUPW) claimed that Canada Post is using layoffs as a "scare tactic" as the strike by more than 55,000 workers stretches into its second week. In a statement to members on Monday last week, CUPW said it is investigating the situation and condemned the Crown corporation’s actions.
Employers want back-to-work legislation for strike
Last week, negotiations between Canada Post and the CUPW reached a stalemate, and the special federal mediator decided to temporarily suspend mediation, according to the government.
Now, CFIB is calling on the government to put a stop to the strike.
Overall, 69 per cent of small business owners want the government to introduce back-to-work legislation.
“The Labour Minister recently said mediation talks have been suspended because the two parties remain too far apart to reach a deal and that a long labour conflict is a possibility, but he is the one who has the power to put an end to this mess,” says Pohlmann.
In August, the Canadian government intervened to bring an end to a nationwide rail strike, with Labour Minister Steve MacKinnon invoking Section 107 of the Canada Labour Code to impose binding arbitration on the dispute between Canadian National Railway (CN), Canadian Pacific Kansas City (CPKC) and the Teamsters union.
Reform to Canada Post system
Meanwhile, one business leader calls for a reform of the Canada Post system, saying the reticent strike “shines a light on much deeper issues within the organization”.
These issues include inefficiency, mismanagement, and an inability to adapt to the modern world, says Mike Szyszka, president, Red Deer & District Chamber of Commerce, via LinkedIn.
“From my perspective, this isn’t about wages. I’m sympathetic to the letter carriers who work hard and deserve to be paid fair, market wages. But union bargaining alone won’t fix the structural failures of Canada Post. What good is a wage increase if the organization collapses under its own weight?” he says.
“As Canadians, we need to protect Canada Post—it’s an essential service. But that means tough decisions. Reducing to a 3 or 4-day-a-week delivery schedule and phasing out individual home delivery in older neighbourhoods are logical first steps, but deeper reforms to their core business model are essential.”
