Strike fears could push small businesses to leave Canada Post for good: CFIB

As Canada Post workers begin voting Monday on a final offer from the employer, the Canadian Federation of Independent Business (CFIB) warns that a potential strike could permanently drive away nearly two-thirds of small business users.

“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,” said CFIB president Dan Kelly. “Small business owners and other consumers need certainty. Thirteen per cent of small businesses permanently dropped usage of Canada Post during the 2024 strike and every time Canada Post goes on strike, more and more businesses leave forever.”

According to CFIB data, four in five small businesses still use Canada Post, with 73 per cent sending cheques and 61 per cent sending other letter mail. More than half (58 per cent) cite low cost as a reason, followed by convenience (50 per cent), reliability (25 per cent) and customer service (nine per cent).

The 2024 strike was estimated to have cost small businesses between $75 million and $100 million daily. In response, 71 per cent of businesses shifted customers to digital options, 45 per cent used private couriers, and 27 per cent delayed sending mail.

Canada Post’s share of the parcel delivery market has shrunk to 24 per cent, down from 62 per cent in 2019, according to the Crown corporation’s latest annual report. CFIB says 73 per cent of small firms now rely on private couriers for parcel delivery.

“The current model at Canada Post is in dire need of massive reform. It’s long overdue for the federal government to implement the well-studied changes that have been required for over a decade,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy. “Small business owners deserve a long-term plan and a postal service they can count on.”