Small businesses gear up -- again -- for a possible Canada Post strike
A Canada Post worker fills his truck with mail in Montreal on Dec.17, 2024. (Christinne Muschi / The Canadian Press)
MONTREAL -- Small businesses and shipping firms are preparing for a possible Canada Post strike as early as next week, a disruption they warn could strain supply chains and freeze millions of parcels as well as billions of dollars in sales.
Mom-and-pop shops and e-commerce companies have started making alternative arrangements to get their packages to consumers and clients -- but many are already frustrated.
In Cape Breton, N.S., retailer Tracy's Rolling Yarn Shop has begun tallying the hit to its bottom line if it's forced to ship through a large courier, which typically charges more for parcels than Canada Post.
'People that just wanted one skein of yarn, I would ask them to wait to see what happened with Canada Post,' said Tracy Stubbard, who owns the store-on-wheels operation.
She explained that the cost of small shipments outweighed sales during last year's Canada Post strike that shut down postal operations for more than a month during peak shipping season ahead of the winter holidays.
For those in rural areas -- where Canada Post is usually the most accessible option -- there's also the inconvenience of finding an alternative courier.
'I shipped through Purolator because it was the closest and easiest spot for me to get to, which was still a 20-minute drive. But their office can only hold maybe two or three people. So we were lined up outside in the cold for 45 minutes to get in to ship stuff,' Stubbard said.
While a burgeoning crop of last-mile carriers and shipping platforms saw their volumes surge during the 2024 strike, many were caught off guard and found they could handle only a fraction of the demand.
Jarrett Stewart, in charge of commercial operations at delivery startup GoBolt, said a Canada Post work stoppage would mean more customers but also more headaches if the big couriers it relies on cap freight volumes.
The Toronto-based company, which counts 500 employees and 12 warehouses across Canada and the U.S., carries out fulfilment services for the big players: storing, packing and shipping items for Canada Post, UPS, FedEx, the United States Postal Service and others.
'That helps relieve the reliance on a single carrier like Canada Post,' Stewart said, noting that a diverse range of clients eases the blow of a disruption at one of them.
'However, when it's your national carrier, it's quite impactful, because there are some areas that only they can access.'
Stewart is trying to head off basic logistics problems faced by customers during the last work stoppage. For example, he's had to remind them to write an address rather than a PO box -- a lockable box at a Canada Post site that other couriers can't access -- in the event of a strike.
He said a second problem is carving out capacity in the shipping ecosystem as part of it shuts down: 'We moved your volume from Canada Post to FedEx, but then FedEx says, 'Hey, no, no, we can't take all this, we're now capping your volume,'' Stewart said.
A strike would stall billions of dollars in e-commerce revenue and leave rural shoppers waiting for essential goods, according to alternative shipping company Stallion Express.
The last work stoppage resulted in an estimated $1.6 billion in losses for small businesses, according to Merchant Growth, a small business financing company. Since then, FedEx and Purolator have raised their freight rates.
Canada Post employees could be headed to the picket line as early as Thursday, with an extension on existing deals between the Crown corporation and the union expiring on May 22.
A strike or lockout would mark the second time in under six months that the postal service ground to a halt after 55,000 employees walked off the job for 32 days in November and December.
Organizations from financial institutions to non-profits are warning of potential disruption. Bank of Montreal tells customers online it has mailed credit cards early and encourages online statements; many banks have sent warning emails. ALS Canada is reminding donors that e-transfers and gifts via phone or website are an option, noting that donations dipped during the last strike.
Some shipping customers looking to make last-minute arrangements may be out of luck, with courier vans already filled to the brim.
'We cannot start shipping for someone overnight,' said Jean-Daniel Gervais, who heads business development at Montreal-based courier Intelcom, known outside Quebec as Dragonfly.
'It takes time because we need to understand their needs, how much volume we're talking about. And then we need to connect the systems so we can flawlessly work with them accepting their orders, picking up their parcels where they are or managing an injection in our network.'
This report by The Canadian Press was first published May 16, 2025.
Article written by Christopher Reynolds, The Canadian Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
29 minutes ago
- National Post
WSIB Rejects Unions Latest Offer
Article content TORONTO — After hearing nothing from the employer for over a week, the union and employer met to exchange proposals, but remain far apart on wages, workload, and employer cuts to seniority rights. The union has made significant movements to try and find a fair compromise, but after significant setbacks, the mediator made the decision to call-off the mediation. Article content OCEU is deeply disappointed that the employer rejected our proposal and hasn't presented their own in over a week. The union amended our proposal in the spirit of negotiation to bring the employer closer to addressing the workload issues which are impacting our members health and well-being. Despite our reasonable offer, the employer still refused to counter our proposal. Article content Article content OCEU/CUPE 1750 remains available to negotiate but needs to see a meaningful move by the employer to meet our members core needs. Picket lines will continue until a fair deal is reached. Article content mb/cope491 Article content Article content Article content Article content Article content Contacts Article content Article content Article content
National Post
2 hours ago
- National Post
BCI Invests in KKR Tower Platform Pinnacle Towers
Article content Article content SINGAPORE & VICTORIA, Canada — KKR, a leading global investment firm, British Columbia Investment Management Corporation ('BCI'), and Pinnacle Towers, an Asia-based digital infrastructure platform with a focus on the Philippines, today announced the signing of definitive agreements under which BCI will acquire a minority stake in Pinnacle Towers from KKR, which will remain the majority shareholder. Article content Pinnacle Towers was established in 2020 to serve the rapidly increasing demand for connectivity and quality telecommunications infrastructure in the Philippines. Led by a highly experienced management team, the platform specializes in executing on Build-to-Suit ('BTS') telecommunications tower projects, optimizing the use and management of Sale-and-Leaseback ('SLB') assets with leading mobile network operators, and providing ancillary management services to industry players. In the span of five years, Pinnacle Towers has scaled to become the largest independent tower company in the Philippines with around 7,000 towers. 1 Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources, BCI, said, 'We are excited to work closely with KKR and Pinnacle's management team to support the growth of the business. The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services. This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines.' Article content Projesh Banerjea, Managing Director, Infrastructure, KKR Article content , said, 'We are very proud of the success that we have achieved with Pinnacle Towers to serve the Philippines' connectivity needs. Since our initial investment, we have collaborated closely with Pinnacle Towers' outstanding management team to deepen the platform's capabilities and scale its presence organically and through bolt-on acquisitions. We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners and look forward to building on Pinnacle Towers' strong growth momentum.' Article content Patrick Tangney, Chairman and CEO of Pinnacle Towers Article content , said, 'Over the last five years, with the support of KKR, Pinnacle Towers has grown to become the leading independent tower company in the Philippines. BCI's investment marks an important milestone in our journey and is a strong endorsement of our mission. With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region.' Article content BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a leading communications tower company in India), and Cube Highways (the largest toll road operator in India). The program continues to expand its presence in the region with the addition of this minority stake acquisition in Pinnacle Towers. Article content KKR made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. KKR's Asia Pacific infrastructure platform was established in 2019 and has since organically grown to approximately US$13 billion in assets under management. Article content The transaction is expected to be completed by Q3 2025, subject to customary regulatory approvals. Article content About BCI Article content British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia pension fund and institutional clients. Learn more at Article content About KKR Article content KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at Article content Pinnacle invests in, builds and operates telecommunications infrastructure with a focus on towers and related assets. Pinnacle is an Asia-focused digital infrastructure platform with a strong focus on the rapidly growing Philippines market. Frontier's leadership team includes founders of a number of highly successful tower companies and former C-level executives from some of the world's leading wireless operators. KKR first invested in Pinnacle Towers in 2020. Article content Article content Article content Article content Article content Contacts Article content Media Contacts Article content
CTV News
2 hours ago
- CTV News
Global streamers fight CRTC's rule requiring them to fund Canadian content
A person browses a television menu showing icons for streaming services Netflix and Amazon Prime in a photo illustration made in Toronto on Friday, March 22, 2024. THE CANADIAN PRESS/Giordano Ciampini OTTAWA — Some of the world's biggest streaming companies will argue in court on Monday that they shouldn't have to make CRTC-ordered financial contributions to Canadian content and news. The companies are fighting an order from the federal broadcast regulator that says they must pay five per cent of their annual Canadian revenues to funds devoted to producing Canadian content, including local TV news. The case, which consolidates several appeals by streamers, will be heard by the Federal Court of Appeal in Toronto. Apple, Amazon and Spotify are fighting the CRTC's 2024 order. Motion Picture Association-Canada, which represents such companies as Netflix and Paramount, is challenging a section of the CRTC's order requiring them to contribute to local news. In December, the court put a pause on the payments — estimated to be at least $1.25 million annually per company. Amazon, Apple and Spotify had argued that if they made the payments and then won the appeal and overturned the CRTC order, they wouldn't be able to recover the money. In court documents, the streamers put forward a long list of arguments on why they shouldn't have to pay, including technical points regarding the CRTC's powers under the Broadcasting Act. Spotify argued that the contribution requirement amounts to a tax, which the CRTC doesn't have the authority to impose. The music streamer also took issue with the CRTC requiring the payments without first deciding how it will define Canadian content. Amazon argued the federal cabinet specified the CRTC's requirements have to be 'equitable.' It said the contribution requirement is 'inequitable because it applies only to foreign online undertakings and only to such undertakings with more than $25 million in annual Canadian broadcasting revenues.' Apple also said the regulator 'acted prematurely' and argued the CRTC didn't consider whether the order was 'equitable.' It pointed out Apple is required to contribute five per cent, while radio stations must only pay 0.5 per cent — and streamers don't have the same access to the funds into which they pay. The CRTC imposes different rules on Canadian content contributions from traditional media players. It requires large English-language broadcasters to contribute 30 per cent of revenues to Canadian programming. Motion Picture Association—Canada is only challenging one aspect of the CRTC's order — the part requiring companies to contribute 1.5 per cent of revenues to a fund for local news on independent TV stations. It said in court documents that none of the streamers 'has any connection to news production' and argued the CRTC doesn't have the authority to require them to fund news. 'What the CRTC did, erroneously, is purport to justify the … contribution simply on the basis that local news is important and local news operations provided by independent television stations are short of money,' it said. 'That is a reason why news should be funded by someone, but is devoid of any analysis, legal or factual, as to why it is equitable for foreign online undertakings to fund Canadian news production.' In its response, the Canadian Association of Broadcasters said the CRTC has wide authority under the Broadcasting Act. It argued streamers have contributed to the funding crisis facing local news. 'While the industry was once dominated by traditional television and radio services, those services are now in decline, as Canadians increasingly turn to online streaming services,' the broadcasters said. 'For decades, traditional broadcasting undertakings have supported the production of Canadian content through a complex array of CRTC-directed measures … By contrast, online undertakings have not been required to provide any financial support to the Canadian broadcasting system, despite operating here for well over a decade.' A submission from the federal government in defence of the CRTC argued the regulator was within its rights to order the payments. 'The orders challenged in these proceedings … are a valid exercise of the Canadian Radio-television and Telecommunications Commission's regulatory powers. These orders seek to remedy the inequity that has resulted from the ascendance of online streaming giants like the Appellants,' the office of the attorney general said. 'Online undertakings have greatly profited from their access to Canadian audiences, without any corresponding obligation to make meaningful contributions supporting Canadian programming and creators — an obligation that has long been imposed on traditional domestic broadcasters.' The government said that if the streamers get their way, that would preserve 'an inequitable circumstance in which domestic broadcasters — operating in an industry under economic strain — shoulder a disproportionate regulatory burden.' 'This result would be plainly out of step with the policy aims of Parliament' and cabinet, it added. The court hearing comes as trade tensions between the U.S. and Canada have cast a shadow over the CRTC's attempts to regulate online streamers. The regulator launched a suite of proceedings and hearings as part of its implementation of the Online Streaming Act, legislation that in 2023 updated the Broadcasting Act to set up the CRTC to regulate streaming companies. In January, as U.S. President Donald Trump was inaugurated for his second term, groups representing U.S. businesses and big tech companies warned the CRTC that its efforts to modernize Canadian content rules could worsen trade relations and lead to retaliation. Then, as the CRTC launched its hearing on modernizing the definition of Canadian content in May, Netflix, Paramount and Apple cancelled their individual appearances. While the companies didn't provide a reason, the move came shortly after Trump threatened to impose a tariff of up to 100 per cent on movies made outside the United States. Foreign streamers have long pointed to their existing spending in Canada in response to calls to bring them into the regulated system. Anja Karadeglija, The Canadian Press
