Trade association the Retail Council of Canada (RCC) has called for federal government intervention to resolve the ongoing Canada Post strike, currently in its fourth week in early December 2024.
Representing more than 54,000 storefronts, the association highlights the detrimental effects on retailers’ ability to meet customer demands and maintain operations.
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As the strike by more than 55,000 Canada Post workers reached its 19th day on Tuesday 4 December 2024, the RCC expressed concern over its timing, coinciding with the closure of the Black Friday and Cyber Monday sales.
The RRC stated that the run-up to the holiday period is critical for the retail industry, and the work stoppage is threatening Canada’s economy, as well as disrupting consumers.
The congestion of alternative delivery services is exacerbating the situation. With many private carriers at full capacity, some are unable to guarantee timely deliveries. Small and medium-sized businesses are finding it difficult to ship products and receive payments, which is putting a strain on their cash flow and potentially leading to closures.
Large retail chains are not immune to the impact, as significant losses loom with consumers opting for international competitors that offer more reliable delivery options. Local retailers’ promotional efforts through flyers and discounts are failing to reach customers, affecting sales and leaving stores with unsold stock.
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By GlobalDataThe RCC estimates that the retail sector has incurred more than C$1bn in losses due to the strike, with the figure still rising.
RCC president and CEO Diane Brisebois said: “Retail knows that the best labour agreement is negotiated with both parties at the table, but that’s not happening and it’s time to end the strike. In the meantime, thousands of retailers and millions of consumers are paying the price.
“The strike is jeopardising Canadian jobs, and businesses of all sizes are taking a hit. Smaller retail businesses are struggling to ship products and receive payments, straining cash and threatening their survival. Promotional flyers and the best discounts of the year are failing to reach mailboxes, leaving stores with unsold goods. Large retail chains are facing significant costs for alternative flyer and product distribution, risking sales as consumers turn to international competitors with alternative delivery options.
“It’s a strange paradox: the government hopes to make holiday shopping more affordable with an HST [harmonised sales tax]-GST [goods and service tax] holiday, while a strike at its Crown Corporation Canada Post is making e-commerce impossible, keeping the best promotional deals out of consumers’ hands, and directing gifts to more expensive delivery methods.”
