Navigating the 2025 Canada Post Strike: What Small Businesses Need to Know

Possible Canada Post Strike

As a small business owner in Canada, you’re likely aware of the looming Canada Post strike set to begin on May 23, 2025, unless a last-minute agreement is reached. The Canadian Union of Postal Workers (CUPW) issued a strike notice on May 19, 2025, following stalled negotiations with Canada Post. With the collective agreements expiring on May 22, 2025, this potential work stoppage could disrupt your operations, especially if you rely on affordable shipping or physical mail. Here’s what you need to know and how to prepare.

Why Is a Strike Happening?

The strike threat stems from unresolved disputes between Canada Post and CUPW, representing over 55,000 workers. Key issues include:

- Wages and Benefits: CUPW is demanding a 24% wage increase over four years and enhanced benefits, while Canada Post, facing over $3 billion in losses since 2018, has offered 11.5% and pushed for cost-saving measures like flexible staffing for weekend deliveries.

- Job Security: The union is concerned about job protections amid Canada Post’s financial struggles and declining letter mail volumes.

- Failed Talks: Negotiations broke down after sessions on May 14–15, 2025, with Canada Post pausing discussions to develop new proposals. An Industrial Inquiry Commission report delivered on May 15 offered no public breakthroughs to avert the strike.

The 2024 strike, which lasted 32 days and cost the economy $1.6 billion, serves as a reminder of the potential impact. If no deal is reached, disruptions could last weeks, with backlogs extending into June or July 2025.

How Will This Affect Your Small Business?

While email and private couriers like Purolator, FedEx, or UPS offer alternatives, a Canada Post strike will still hit small businesses hard, particularly those in e-commerce, rural areas, or reliant on physical mail. Here’s how:

1. Shipping Disruptions:

   - Higher Costs: Canada Post’s affordable rates are a lifeline for small businesses, especially for small parcels and international shipping. Private couriers often charge 20–50% more, squeezing your margins.

   - Rural Challenges: Canada Post’s universal service reaches remote areas where private couriers may not deliver or charge exorbitant fees. If you serve rural customers, you could lose sales or face delays.

   - E-Commerce Risks: Delayed deliveries can lead to unhappy customers, negative reviews, and lost sales on platforms like Shopify or Etsy, where Canada Post is a go-to option.

2. Mail Delays:

   - While email handles much communication, many businesses still send invoices, checks, legal documents, or marketing materials (e.g., flyers) via mail. A strike could disrupt cash flow or promotional campaigns, especially for businesses serving older customers or those with limited internet access.

3. Backlog Effects:

   - Even after a strike ends, backlogs could delay services for weeks, as seen post-2024 strike when delays persisted into January 2025. This could frustrate customers and harm your reputation.

4. Customer Expectations:

   - Customers expect timely deliveries. A strike could force you to explain delays or offer refunds, impacting trust and revenue.

Is Canada Post Outdated?

You might wonder if email and private couriers make Canada Post obsolete. While digital communication and competitors reduce reliance on postal services, Canada Post remains critical:

- Affordability: Its subsidized rates are unmatched for small businesses.

- Reach: Its 6,200 post offices and universal service obligation ensure delivery to every Canadian address, unlike private couriers that may skip remote areas.

- E-Commerce Integration: Canada Post’s systems integrate seamlessly with e-commerce platforms, streamlining shipping for small businesses.

However, if businesses and consumers adapt well to a month-long strike, it could fuel perceptions that Canada Post is less essential, potentially accelerating calls for privatization or restructuring. This could lead to higher costs or reduced services, especially in rural areas, in the long term.

How Long Will the Strike Last?

No official duration is confirmed, but historical strikes offer clues:

- The 2024 strike lasted 32 days, paused by a Canada Industrial Relations Board order.

- The 1981 strike, Canada’s longest, ran for 42 days.

- Government intervention, as seen in 2018 and 2024, could shorten the strike to 2–6 weeks if economic impacts escalate.

Backlogs could extend disruptions beyond the strike, so plan for delays into late June or July 2025.

What If the Impact Is Minimal?

If businesses and consumers cope well using private couriers or digital solutions, Canada Post could face:

- Lost Market Share: You might establish long-term relationships with competitors, reducing Canada Post’s parcel revenue.

- Financial Strain: A month-long strike would halt revenue while fixed costs persist, worsening Canada Post’s $3 billion deficit.

- Privatization Pressure: Minimal disruption could strengthen arguments for privatizing or reforming Canada Post, potentially raising costs for small businesses in the future.

How to Prepare Your Business

To minimize the strike’s impact, take these steps now:

1. Diversify Shipping:

   - Set up accounts with Purolator, FedEx, UPS, or local couriers. Negotiate rates early to secure capacity, as demand may surge.

   - Explore regional options for urban deliveries to cut costs.

2. Go Digital:

   - Shift to e-invoicing and digital contracts to reduce reliance on mail.

   - Use email or social media for marketing instead of flyers.

3. Communicate with Customers:

   - Inform customers of potential delays via email or your website.

   - Offer tracking or local pickup options to maintain trust.

4. Plan Inventory:

   - Stock up on critical supplies to avoid shipping delays.

   - Prioritize local or in-store sales to bypass postal disruptions.

5. Stay Informed:

   - Monitor Canada Post’s website (canadapost.ca) or CUPW’s updates for negotiation progress.

   - Follow news or X posts for real-time insights on strike developments.

The Bottom Line

A Canada Post strike starting May 23, 2025, could disrupt your small business through higher shipping costs, delayed mail, and customer dissatisfaction. While email and private couriers help, they can’t fully replace Canada Post’s affordability and reach, especially for rural or e-commerce businesses. A month-long strike might highlight alternatives, but it could also harm Canada Post’s long-term viability, potentially leading to costlier services down the line.

Act now to diversify your logistics, embrace digital solutions, and communicate with customers. By preparing for a 2–6-week disruption, you can protect your business and keep operations running smoothly.