On the eve of the year’s busiest shopping day, Canada’s postal service remains far from resolving a strike that has dragged on for two weeks.
What happened: Negotiations between Canada Post and the union representing its 55,000 postal workers have broken off after a federally appointed mediator ordered the two sides to take a breather and reevaluate their positions. The two sides remain ways away from a deal.
- Talks have stalled over key issues including Canada Post’s plans to offer seven-day deliveries and demands for wage increases and expanded retirement benefits.
- Canada Post has missed out on delivering 11 million parcels since the strike began, while many businesses are turning to more expensive options like UPS or FedEx.
Why it matters: Over three-quarters of Canadian small businesses rely on Canada Post for crucial customer shipments, and many of them can usually expect to bring in up to 40% of their revenue during the holiday shopping season.
- Shopify VP Alexandra Clark tweeted that if the strike drags on through Black Friday, the impact would devastate 67,000 small merchants, particularly online businesses.
What’s next: Despite intervening to end rail and port strikes earlier this year, Labour Minister Steven MacKinnon said the federal government will not take similar action with Canada Post.
Get smarter about what matters. Sign up for The Peak, a free five-minute daily email on Canadian business, tech, and finance that you’ll actually enjoy reading.