As the Canada Post labor dispute enters its third week, British Columbia’s small business owners find themselves caught in an increasingly challenging situation, with many reporting significant disruptions to their operations and growing concerns about their financial stability.
The rotating strikes, which began after negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) broke down in late October, have created a logistical nightmare for businesses that rely heavily on postal services for everything from product deliveries to invoice processing.
“I’ve lost approximately $8,000 in sales this week alone,” says Marisa Chen, owner of Vancouver-based handcrafted jewelry business Coastal Designs. “Our holiday season pre-orders are sitting in warehouses while customers grow increasingly frustrated. Some have already requested refunds.”
The timing couldn’t be worse for BC’s retail sector. With the crucial holiday shopping season approaching, many small business owners had been counting on strong fourth-quarter sales to recover from earlier economic challenges. According to a recent survey by the Canadian Federation of Independent Business, nearly 68% of small businesses in BC report being “significantly affected” by the postal disruption.
For e-commerce businesses, which exploded in popularity during the pandemic and continue to represent a growing segment of BC’s economy, the impact has been particularly severe. Many have scrambled to find alternative delivery options, only to discover that private courier services come with substantially higher costs.
“Switching to private couriers has increased our shipping costs by nearly 300%,” explains Jamal Williams, founder of Surrey-based organic tea company Mountain Brew. “We’re faced with an impossible choice: absorb those costs and operate at a loss, or pass them on to customers and risk losing sales. Neither option is sustainable.”
The disruption extends beyond retail. Professional services firms report delays in receiving payments as mailed checks remain undelivered, creating cash flow challenges that threaten their ability to meet payroll obligations. Meanwhile, healthcare providers face difficulties receiving medical supplies and sending important documents.
In response to the growing crisis, some business organizations have called for government intervention. The BC Chamber of Commerce has urged federal officials to consider back-to-work legislation if an agreement cannot be reached soon, arguing that the economic impact of prolonged postal disruption could have lasting consequences for the province’s economy.
“Small businesses are the backbone of our communities,” says Eleanor Thompson, BC Chamber of Commerce president. “Many of these businesses operate on razor-thin margins and simply cannot withstand prolonged disruption to postal services, especially during the critical pre-holiday period.”
The federal Labour Minister has thus far resisted calls for legislative intervention, emphasizing the government’s belief in the collective bargaining process. However, pressure continues to mount as the economic toll rises.
In Victoria, small business owner Michael Dawson has taken matters into his own hands. His bookstore, Lighthouse Reads, has organized a local delivery network with other nearby businesses. “It’s not ideal, but we’re adapting,” Dawson says. “We’ve created a neighborhood delivery route where we take turns dropping off packages to local customers. It’s actually created a stronger sense of community among businesses.”
While such creative solutions offer temporary relief, they cannot fully replace the infrastructure and reach of Canada Post, particularly for businesses that ship nationwide or internationally.
As negotiations continue between Canada Post and the postal workers’ union, BC businesses are left wondering how long they can maintain operations under these conditions and what lasting impact the disruption might have on consumer confidence in small businesses that rely on the postal system.
The question now facing both the disputing parties and government officials is whether the broader economic damage caused by this labor dispute will ultimately outweigh the specific issues being negotiated at the bargaining table. And for thousands of BC business owners, the answer cannot come soon enough.
