A workers’ strike could cause Canada Post to permanently lose 63 percent of businesses as customers, according to the “Special Survey: Canada Post Service, Disruptions and Reform” study conducted by the Canadian Federation of Independent Business.
Currently, four in five businesses use Canada Post, with 73 percent and 61 percent sending cheques and letter mail, respectively. Low cost and convenience were the main factors for 58 percent and 50 percent of customers, respectively.
However, just 25 percent found Canada Post reliable, and only 9 percent praised its customer service.
“Yo-yoing in and out of strike mandates is causing Canada’s small businesses – one of Canada Post’s last groups of profitable customers – to leave for good,” CFIB president Dan Kelly said in a statement. “Small business owners and other consumers need certainty. 13 percent of small businesses permanently dropped usage of Canada Post during the 2024 strike and every time Canada Post goes on strike, more and more businesses leave forever.”
Small businesses were estimated to have lost $75 million-$100 million daily due to the 2024 Canada Post strike. Seventy-one percent of businesses urged their customers to opt for digital options; 45 percent shifted to private couriers, and 27 percent delayed their mail.
Recent CFIB data revealed that 73 percent of small businesses generally deliver packages through private couriers. Canada Post said in its latest annual report that it held only a 24 percent share in the parcel delivery market.
The organization presently loses $10 million per day.
“The current model at Canada Post is in dire need of massive reform. It’s long overdue for the federal government to implement the well-studied changes that have been required for over a decade. Small business owners deserve a long-term plan and a postal service they can count on,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy.
Canada Post workers began voting on the final employer offer on Monday.
The CFIB conducted the “Special Survey: Canada Post Service, Disruptions and Reform” survey from June 26 to July 10 with 2,317 respondents.