The Canada Post strike, now in its fourth week, is not just disrupting mail services but creating a ripple effect on the broader logistics industry. Companies like Purolator and UPS, along with e-commerce shipping platforms such as eShipper, are feeling the heat during this critical holiday season.

The Current State of Negotiations

Although official mediation has yet to resume, Canada Post and the Canadian Union of Postal Workers (CUPW) are exchanging proposals via a federal mediator. CUPW President Jan Simpson expressed the union’s willingness to negotiate agreements that ensure job security and fair wages. Meanwhile, Canada Post stated its commitment to flexibility and urgency in reaching a deal.

The Strain on Purolator and UPS

Purolator, a subsidiary of Canada Post, and UPS have temporarily stopped accepting new orders from intermediary courier services like eShipper. This pause, initially expected to last 48 hours, may extend if the strike continues, compounding the difficulties for businesses relying on these services for holiday deliveries.

Dan Kelly, CEO of the Canadian Federation of Independent Business, voiced concerns over the mounting pressure on small retailers:

“First, there was no Canada Post. If private couriers aren’t an option either, our members are really in trouble. It goes from being a stressful situation to an absolute disaster.”

Impact on Small Businesses and Wineries

The strike has left many small retailers scrambling to fulfill orders during their busiest time of year. Ontario wineries, which often rely on specialized delivery services, are also overwhelmed. Michelle Wasylyshen, president of Ontario Craft Wineries, noted that many delivery services are struggling to manage increased volumes.

Key Issues in the Negotiations

Wages and Benefits: Canada Post has proposed an 11.5% wage increase over four years, while CUPW seeks a 24% hike.
Weekend Deliveries: Canada Post wants part-time staff to handle weekend deliveries, but CUPW insists full-time workers should cover these shifts.
Expanded Services: CUPW is also pushing for Canada Post to expand into banking services.

What’s Next?

As mediation progresses, businesses and consumers are urging a swift resolution to restore shipping services. However, with no formal talks scheduled, the holiday season remains precarious for retailers and shippers.