"Too Little, Too Late": Small Businesses Frustrated as Ottawa Moves to End Canada Post Strike
The government’s decision to intervene in the ongoing labor dispute at Canada Post has been met with relief from some business groups, but frustration remains high among small businesses that have been severely impacted by the strike.
Strain on Cash Flow and Operations
For many small business owners, the halt in mail delivery has put a strain on their cash flow and operations. "The other impact is not receiving payments from some of our U.S. customers who pay by cheque," said Mallia, owner of a company affected by the strike. "There’s a fear that they might not come in at all, because we don’t know if the mail has been lost."
Long-Term Damage and Dependence on Alternative Solutions
The Canadian Federation of Independent Business (CFIB) expressed relief at the government’s decision but highlighted the lasting damage the strike has caused. "Small firms have been losing $100 million per day, with total damage of $1.6 billion since the strike began," said CFIB president Dan Kelly. "Nearly three-quarters of small firms report they will reduce their dependence on Canada Post going forward, making it even more challenging for the corporation to operate in the future."
Alternative Solutions Drying Up
The disruption has forced businesses such as Muscat’s to find alternative ways to manage payments and shipments, including relying more heavily on e-transfers and other digital solutions. However, these workarounds are drying up, leaving many small businesses vulnerable.
Government Intervention Welcome but Insufficient
While the CFIB welcomed the government’s intervention, Kelly noted that the strike’s impact has already been profound. "We can’t keep doing this," he said. "Canada Post needs massive reforms to ensure that even basic services to all Canadians can continue. And we need a better process to resolve major labor disputes among our key supply chain players, like ports, railways and Canada Post."
Small Businesses Feeling the Brunt
The only people this strike has been hurting is small businesses," said Muscat. "We had to say, ‘Sorry, we can’t do it.’" Her company had to turn away orders due to the disruption.
Canada Post’s Commitment to Service
In a statement, Canada Post acknowledged the minister’s announcement and said it is reviewing the details to comply with the process. "Our commitment has always been to reach negotiated agreements with the Canadian Union of Postal Workers that would help us better serve the changing needs of Canadians and provide good jobs to those who provide the service," the corporation said.
A Call for Reform
The strike highlights the need for reform within Canada Post, according to Kelly. "Canada Post needs massive reforms to ensure that even basic services to all Canadians can continue. And we need a better process to resolve major labor disputes among our key supply chain players, like ports, railways and Canada Post."
A Frustrating Experience for Small Businesses
The experience of small businesses during the strike has been frustrating, with many feeling that they have been left behind by the government’s decision. As Muscat noted, "The only people this strike has been hurting is small businesses."