Businesses warn of product shortages, rising costs due to possible postal strike | Globalnews.ca

A strike by the Canadian Union of Postal Workers could be devastating for small retailers at their busiest time of year, according to the Retail Council of Canada.

“We are really worried because as retailers, we are increasingly using online delivery to get goods to Canadians,” vice-president Matt Poirier said following news Tuesday morning that CUPW has filed a 72-hour strike notice against Canada Post.

For many small businesses, Poirier said, the holiday shopping season will determine if they survive financially.

“This is the busiest time of the year and a lot of Canadians do online shopping and rely on Canada Post to get those goods to them in time for the holidays. This is what makes their year.”

A strike would also have an impact on consumer prices, Poirier said, as businesses look for other ways to get their goods to customers.

“While there may be other alternatives, they are a lot more expensive and especially when everyone rushes to use the alternatives, the prices spike and go up even more,” Poirier added.

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“So when the margins are thin, as they are in the retail business, it really makes them unviable as an option, and Canadians end up paying for these costs (because) retailers have to recoup these costs in their prices.”

Canada Post says the threat of a strike is already having a significant impact on business.

In a statement, the Crown corporation said parcel delivery volumes have already declined by 28 per cent, following news the union had voted earlier this month in favour of possible strike action.

Canada Post estimates that amounts to 1.3 million parcels, or more than a day’s worth of deliveries.

After almost a year of bargaining, the two sides appear to remain far apart on many issues, including wages, benefits, health and safety, and scheduling.

Wycliffe Oduor, president of CUPW Local 710 in Calgary, told Global News that members “have been waiting for way too long to get a contract,” so the strike notice will “help extradite the issues that are on the table so we can get a negotiated contract.”

Asked about the impact of a potential strike, Wycliff said: “This is why we are in this position right now, it is to address service delivery for the public, and it is important that Canada Post comes to the table with a plan to actually proceed with that.”

The strike notice means CUPW will be in a legal position to strike on Friday at 2:01 a.m. MT (12:01 a.m. ET).

Canada Post said the union has also been notified that if new agreements are not reached by that time, the current collective agreements will no longer apply.

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