Strike fallout prompts 63% of firms to consider cutting ties, says Canadian Federation of Independent Business
Nearly two in three Canadian businesses are prepared to permanently cut ties with Canada Post if strike disruptions persist, according to new data from the Canadian Federation of Independent Business (CFIB).
As reported by CFIB on Monday, 63 percent of businesses said they would leave the postal service for good, with 13 percent already having done so during the 2024 strike.
The CFIB estimates those work stoppages cost small businesses between $75m and $100m per day.
The vote on Canada Post’s latest contract offer, which began July 22 and runs until August 1, has intensified pressure on employers and service users.
The Canadian Union of Postal Workers (CUPW) is urging its 55,000 members to reject the proposal.
The offer includes a 13 percent wage increase over four years and the addition of part-time roles—positions Canada Post has said are essential to the Crown corporation’s financial viability.
The vote was initiated after federal Jobs Minister Patty Hajdu asked the Canada Industrial Relations Board to intervene.
“We hope our employees see these offers provide certainty for the road ahead and vote yes to make them their new collective agreements,” said spokesperson Jon Hamilton.
If accepted, the offer would take effect until January 31, 2028.
But Union National President Jan Simpson said a strong rejection would “protect the integrity of the bargaining process.”
The dispute follows more than 18 months of unresolved negotiations between CUPW and Canada Post.
The broader impact on Canadian enterprises remains a concern.
CFIB president Dan Kelly said the “yo-yoing in and out of strike mandates is causing Canada’s small businesses – one of Canada Post’s last groups of profitable customers – to leave for good.”
CFIB also reported that 71 percent of businesses turned to digital alternatives during disruptions, 45 percent used private couriers, and 27 percent delayed mail.
While 80 percent of businesses still use Canada Post—primarily for sending cheques (73 percent) and letter mail (61 percent)—CFIB data shows only 50 percent continue to use it for convenience, with 58 percent citing cost as a main factor.
Fewer businesses pointed to reliability (25 percent) or customer service (9 percent).
Canada Post’s share in parcel delivery has dropped from 62 percent in 2019 to 24 percent, as reported in its annual filing. CFIB data shows 73 percent of small firms now rely on private couriers for packages.
Corinne Pohlmann, CFIB’s executive vice-president of Advocacy, said Canada Post’s current model requires major reform and that the federal government has delayed implementing changes that have been identified for over a decade.
She added that small business owners need a long-term plan and a reliable postal service.
Meanwhile, a separate Angus Reid Institute survey found 61 percent of Canadians would be willing to pay a $20 annual subsidy to support Canada Post’s universal service mandate.
“Canadians do treasure their postal service, but at the same time, they are open to big changes,” said Angus Reid Institute president Shachi Kurl.
