B.C. business owners brace for second Canada Post strike
B.C business owners are facing the financial difficulties of another Canada Post strike, after postal worker unions delivered a strike notice to the company on Monday with plans to strike on Friday.
Emma May, owner of womenswear store Sophie Grace Designs, sells the bulk of her merchandise through online orders. However, when Canada Post strikes, she says she can't reach customers in rural areas.
"We service customers all over the country, we service them into the states too but that's a whole other issue with tariffs," she said.
"It's a big deal," she told CBC's The Early Edition.
May says that during last year's Canada Post strike, business owners in B.C. had to deal with the port strike at the same time – this year, it's tariffs.
"It's not cool that businesses here are looking at this again saying, 'Why are we going through this again?'"
When Canada Post workers go on strike, businesses must turn to private courier companies if they want to ship their goods. Typically, the couriers cost more than Canada Post.
Canada Post workers striked for 32 days starting in November 2024, but the government ordered them back to work on Dec. 17. Both the workers and company were told to come to a new agreement by May, but that hasn't happened.
May, who sells suits, silks and other higher-priced items, says her business can afford an increase in shipping. However, many of her business colleagues who sell items ranging from $10 to $30 will be heavily impacted.
Connally McDougall, the owner of another Vancouver-based clothing company, said she is not surprised to hear about the strike notice because postal workers did not get the changes that they were asking for during the previous strike in November.
WATCH | Small businesses brace for Canada Post disruption:
How should the federal government respond to this next round of the Canada Post labour dispute?
2 days ago
Duration 1:28
David MacDonald, a senior economist at the Canadian Centre for Policy Alternatives, says Prime Minister Mark Carney's Liberals could take a different approach from Trudeau's Liberals, who intervened in the previous Canada Post disruption in December of 2024. Speaking to BC Today host Michelle Eliot, MacDonald says Canada Post could look at improving its strategy instead of laying off workers to manage its dire financial situation.
McDougall's brand, Connally Goods, focuses on size and gender inclusivity and sells the majority of its items online. Using alternative shipping companies, such as UPS, FedEx and Purolator not only cost more money, but the logistics of switching over also costs her time.
"Sending a parcel to New Brunswick used to cost maybe $15 and now it's $22 because I have to use an alternate provider," she said.
"We do need Canada Post."
Tariffs don't affect her business as much because her products are locally sourced and made, but, the time spent keeping updated on postal strikes and having to educate customers on service delivery is costly.
McDougall says that some couriers are now charging an extra $2 per domestic parcel due to higher demand created by the Canada Post strike notice.
"I can't blame them, if anything I hope it incentivizes the corporation to make an agreement that's fair."
Fiona Famulak, president and CEO of the B.C. Chamber of Commerce, says that shipping disruptions, caused by the postal strikes and recent port and rail disruptions, create "unreliability in our supply chain."
In a press release B.C.'s Ministry of Social Development and Poverty Reduction said that it is taking steps to ensure that those who are receiving disability or income assistance from the province will still receive payment during the Canada Post strike.
In another press release, the Surrey Board of Trade and the South Surrey & White Rock Chamber of Commerce called upon the Canadian government and Canada Post to collaborate on a long-term solution that protects both service and workers' rights.
Canada Post presented a new offer to the Canadian Union of Postal Workers on Wednesday, which it says includes a 13.59% increase in wages over four years for current Canada Post employees.
Also under the new offer, future employees, who are hired after the new collective agreement is signed, will receive health and pension benefits after six months of regular employment.
CUPW has said it is reviewing the offer, but noted Wednesday that the offer is "short of our last demand for a 19 per cent increase to members' base wages to keep pace with the rising costs of living."
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Toronto Sun
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Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account RBC senior economist Claire Fan said in an interview that the effective tariff rate is an average of the import duties paid on goods heading to the United States that accounts for exemptions tied to the Canada-U.S.-Mexico Agreement (CUSMA) on trade. While U.S. President Donald Trump ramped up blanket tariffs on Canada to 35% at the start of the month, that move maintained an exemption for goods compliant with the CUSMA. RBC estimates the effective tariff rate on Canadian goods is closer to 6% today. BMO's calculations from the start of the month place that figure a little higher, at around 7%. Read More Your noon-hour look at what's happening in Toronto and beyond. 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