Janet Wright, the owner of FloorPlay Socks, a boutique sock shop with multiple locations in the Greater Toronto and Hamilton Area (GTHA), expressed relief at the news of a potential agreement between Canada Post and the Canadian Union of Postal Workers. This agreement pauses the ongoing strike action, which has been a significant concern for retailers, especially during the crucial holiday shopping season.
Wright emphasized the detrimental impact that strikes have on her business, recalling the previous Christmas when Canada Post was on strike. "I hope it stays and does not dissolve again over Christmas; we went through this once before at Christmas, where Canada Post was on strike, and it affected our business tremendously," she stated. The strike forced her to rely on more costly courier services, which strained her operational costs and delivery reliability.
On November 21, Canada Post and the Canadian Union of Postal Workers announced an agreement in principle as both parties work on finalizing terms for a tentative agreement. Although specific details about the agreement remain undisclosed, it signals an end to rotating strikes and any potential lockouts, which is crucial for ensuring uninterrupted mail and delivery services throughout the holiday season.
Retail analyst Bruce Winder pointed out that uncertainty poses the biggest threat to businesses. He noted that even though there is a tentative agreement in place, uncertainties linger. “The kryptonite for business is uncertainty. They need certainty to plan their business. And even now, it’s still a tentative agreement. What if it falls through?” he remarked.
As the holiday shopping season ramps up, many consumers along Toronto's Queen Street West are hesitant to fully trust Canada Post. Some shoppers stated they intend to favor in-store purchases instead. Winder noted that both merchants and customers may feel apprehensive about using Canada Post due to potential backlogs that could affect timely deliveries, warning, "Things, parcels that you may want to get delivered by the 25th of December may be arriving in January."
Despite the positive developments with the union, management, and government working together, experts caution that Canada Post remains at risk of alienating small businesses. Dan Kelly, president of the Canadian Federation of Independent Business, shared alarming statistics indicating a clear sentiment among small firms: “Over the course of the last year, our data has shown that about two-thirds of small firms have said that if there was another lengthy strike at Canada Post, then they wouldn’t return at all.” This statistic reflects the fragile relationship between small businesses and the postal service, intensified by the looming threat of further strikes.
Canada Post is also grappling with serious financial issues, having reported its highest quarterly loss in history. After beginning the year with a $1 billion federal loan, the Crown corporation is projected to need an additional bailout within one to two months as it continues to face significant financial strain.
Moving forward, Kelly expressed hope for a sustainable partnership between Canada Post and its union. “If Canada Post has worked out a model with its union that will allow it to reduce the cost pressure and add services like more delivery options, I do think that there’s a role for Canada Post,” he asserted, suggesting a path forward that could benefit both the postal service and businesses that rely on it.
