As the threat of a Canada Post strike or lockout looms, Canadians are likely wondering if their Christmas mail will arrive on time, while businesses look for alternatives for their package delivery needs.
Canada Post issued a lockout notice Tuesday after the Canadian Union of Postal Workers (CUPW) served the Crown corporation with strike notices for both the urban operations unit and the rural and suburban letter carriers (RSMC) unit.
As labor negotiations continue, a Canada Post spokesperson told Global News the company does not plan to cease operations at this time, but could make changes to its operations as early as Friday.
Amid the uncertainty of a job action at the national postal service, other courier services are already preparing for an influx of deliveries and drawing up contingency plans.
FedEx said it is hopeful that negotiations between Canada Post and CUPW will be resolved amicably.
“Anticipating that circumstances at Canada Post may trigger an increase in demand for FedEx services, a comprehensive contingency plan is in place to manage the volume of demand,” FedEx Canada spokesperson James Anderson told Global News in a statement sent by email.
“We ask Canadians to plan ahead and understand that we may adjust some of our domestic services to accommodate.”
A UPS Canada spokesperson said: “As discussions between Canada Post and the Canadian Union of Postal Workers (CUPW) continue, UPS remains dedicated and prepared to serve the needs of our customers.”
Purolator, owned by Canada Post, is also monitoring the situation and has contingency plans to manage a potential increase in volume.
Could holiday deliveries cost more?
If Canada Post customers switch to other courier options, they may end up having to pay a little more, depending on the company, experts say.
Matt Poirier, vice-president of federal government relations at the Retail Council of Canada, said Canada Post is not only one of the cheapest shipping options, it is also one of the largest suppliers, especially for small businesses that rely on he.
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For example, the flat rate Canada Post charges for a small box is $19.99 and $24.99 for a medium box. based on prices that came into effect in July.
In comparison, the flat rate for FedEx the small box costs at least $20.26 and just $25.5 for the medium box.
Purolator recently introduced a flat rate starting at $15, plus taxes and fees, for province-wide shipping and $20 for ground shipping to the rest of Canada. Purolator Express Boxes cost $22 for provincewide shipping and $52 for the rest of Canada.
Sylvia Ng, CEO of ReturnBear, which is an e-commerce platform that allows instant product returns and refunds, said the switch to other courier companies may seem easy for consumers, but not for businesses.
“We can walk to a FedEx or Purolator branch instead of a Canada Post branch and that’s it. The reality is that it is much more difficult for businesses to make that adjustment due to the sheer volume and also existing systems that are already connected directly to Canada Post technology.”
Canada Post said the impending job action could affect millions of Canadians and businesses that rely on its service.
The potential work stoppage has retailers worried ahead of the busy holiday season.
“This is one of the leading package delivery providers for retail and it couldn’t come at a worse time during the holiday season,” Poirier said.
Ng said merchants are now scrambling to figure out how else they can ship with other courier options to minimize any disruption that may occur from Friday.
However, he said it is difficult to plan for the future given that there is no clear indication of whether or when and what the closure could happen.
“It’s the ambiguity of not knowing what could happen and when, as if you knew the exact moment of everything and could plan better,” he said.
“When you don’t know… it’s essentially a moving target.”
Poirier told Global News that retailers can turn to alternative mailers, but they can be more expensive and consumers can also expect some of those cost differences to be passed on to them.
“Retailers have options. However, they will be more expensive and if everyone opts for alternative sources of supply, availability will be reduced and prices will increase. “That is the big concern we have in the retail sector right now.”
Poirier said the holiday season is the “busiest time of year for retail” and a Canada Post work stoppage following two closures at Canada’s largest ports will be “really bad news” for the retail sector and for Canadians shopping during the holidays.
“Unfortunately, it is the consumer who ends up paying for these delays and these interruptions,” he said.
– with files from Anne Gaviola of Global News
© 2024 Global News, a division of Corus Entertainment Inc.
