Manitoba small business anxious as Canada Post strike halts shipments

Some Manitoba small business owners say the Canada Post strike is already having an effect on their bottom line, with mounting anxiety as to what an extended labour stoppage could mean ahead of the holiday season.

About 55,000 mail workers across the country hit the picket line Friday morning, after their employer and the union that represents them failed to reach an agreement on a new contract after a full year of negotiations.

The Canadian Union of Postal Workers says it's seeking better working conditions, as well as a wage increase of 23 per cent over four years, well above the 11.5 per cent the Crown corporation has offered.

On Saturday, a spokesperson for the federal labour minister told CBC News a special mediator has been appointed to support negotiations between the Crown corporation and CUPW.

Canada Post has said letter mail and parcels won't be processed or delivered during the strike, and service guarantees for items already in the postal network will be affected. Some post offices will also be closed.

The stoppage comes just as Winnipeg businesses were gearing up for the peak holiday season, starting with Black Friday later this month.

"If you lose business in this next month, it's going to hurt for at least the next quarter," said Aimee Peake, owner of Bison Books in downtown Winnipeg. Anywhere from 30 to 50 per cent of her business comes from online, she said.

"It's a difficult situation because I do support the workers, but … in a case like this where so many businesses are so dependent on this government organization, it's really painful."

The bookstore is notifying customers about the delay and asking them if they'd like them a quote for a different parcel delivery service, but that's not ideal because couriers are more expensive, said Peake.

"Amazon has their own trucks," she said. "Those huge businesses aren't affected by this kind of a thing — only we are. And if our costs are going up, it makes us less competitive."

Mike Huen, owner of the antique and collectibles shop Mike's General Store, said he's halted virtually all shipments while the strike is happening.

"One of the big things with Canada Post is it will deliver to small towns — for a premium, but at least it will," said Huen, who shut his storefront last year but still sells items online and at markets.

"It's not going to cause a great difference in terms of my bottom line. But for a lot of people who run an exclusive mail business, who rely on Canada Post … [it's] really hard."

Hard hit before Christmas: business owner

Michelle Waldner, a stay-at-home mom, began running her own jewelry business three years ago. Almost 95 per cent of Hey Stud Co.'s business comes from online sales. 

Waldner, who is from the small community of Blumenort, just southeast of Winnipeg, said using a parcel service other than Canada Post would mean tripling shipping costs for customers. She's decided to take her business offline for the time being.

She's signed up for a lot of holiday markets last minute to help offset the losses, but that it's not a reliable source of income for her and her family, she said.

"We very much rely on my small business. It pays for our groceries and it pays for anything extra that comes up," said Waldner. "It's going to affect our ability to give our kids a good Christmas this year."

Waldner said she and other craft sellers are also struggling because a lot of their suppliers ship through Canada Post. If the strike drags on, she'll have about a month before she has to make any big decisions as to her businesses' future, she said.

"I might start offering other shipping options just in case somebody does want to spend the extra money," she said. "But with a rough economy, paying $20 to ship a couple pieces of jewelry, it's not practical for a lot of people."

Canada Post said in a statement Friday it's let the union know it would continue operating and maintaining service in the event of a rotating strike.

The statement said the company has lost $3 billion since 2018 and that losses continue to mount.

Huen of Mike's General Store, who has shipped exclusively with Canada Post for almost a decade, said the carrier seems to be a "losing proposition" every year.

"I sympathize with both sides," he said.

"Everything in this world has gotten to be a lot more expensive, [and] everybody needs more money to get by. At the same time … as soon as they negotiate this, I'm sure that all the rates will go back up again."