As the CUPW votes on new deal, businesses are already leaving Canada Post
As Canada Post employees vote on a proposed new contract, many businesses have already given up on the crown corporation following a pair of work stoppages.
The Canadian Union of Postal Workers (CUPW), which represents 55,000 Canada Post employees, is being forced to vote on a new deal despite not reaching an agreement in 18 months of negotiations.
Canada Post has said its latest offer addresses employees’ major concerns and builds on previous offers, though the CUPW says it “outright ignored our positions” when it comes to the union’s big concerns.
These disruptions have taken a toll on Canadian businesses. In December, the Canadian Federation of Independent Businesses reported that the Canada Post strike was costing small- and medium-sized businesses about $76.6 million each day.
Now, many are considering walking away from the service all together.
The CFIB reported on Monday that 63 per cent of Canadian businesses are prepared to leave Canada Post permanently, and 13 per cent of small businesses already left the service during the 2024 strike.
“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 said in a news release. “Small business owners and other consumers need certainty.”
Currently, about 80 per cent of Canadian businesses use Canada Post for sending cheques and letter mail, according to the CFIB.
When it comes to packages, Canada Post holds a much smaller market share, which has dropped from 63 per cent in 2019 to just 24 per cent today, according to the corporation’s annual report.
The CFIB data shows that 73 per cent of small businesses now rely on private couriers for package delivery.
“The current model at Canada Post is in dire need of massive reform,” Corinne Pohlmann, executive vice-president of advocacy at CFIB, said in the news release.
“It’s long overdue for the federal government to implement the well-studied changes that have been required for over a decade. Small business owners deserve a long-term plan and a postal service they can count on.”
While businesses might be prepared to walk away from Canada Post, individual Canadians appear willing to support it further.
A recent poll from the Angus Reid Institute found that 61 per cent of Canadians would contribute a $20 annual subsidy to support Canada Post and its mandate of universal, cross-country service.
“Canadians do treasure their postal service, but at the same time, they are open to big changes,” Shachi Kurl, president of the Angus Reid Institute, said last month.
With files from Naimul Karim and Gigi Suhanic