{"id":5163,"date":"2025-09-03T01:19:35","date_gmt":"2025-09-03T05:19:35","guid":{"rendered":"https:\/\/employmenthero.com\/en-ca\/?post_type=news&p=5163"},"modified":"2025-12-03T05:55:29","modified_gmt":"2025-12-03T10:55:29","slug":"looming-canada-post-strike","status":"publish","type":"news","link":"https:\/\/employmenthero.com\/en-ca\/news\/looming-canada-post-strike\/","title":{"rendered":"Private couriers boom as Canada Post chaos drags on \u2014 SMBs pay more to keep customers happy."},"content":{"rendered":"\n
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Orders stalled. Parcels sitting idle. Customers chasing tracking numbers that haven\u2019t updated in days. That\u2019s the reality for thousands of Canadian SMBs right now. <\/strong><\/p>\n\n\n\n

Canada Post is deep in crisis. Since May, the Canadian Union of Postal Workers (CUPW) has enforced a nationwide overtime ban after contract talks collapsed. The impact? Deliveries are stalling, and Canada Post says volumes have crashed by about 60%, with its market share sliding from 62% in 2019 to just 26.7% in 2024, according to Reuters<\/em><\/a>. For an organization once seen as untouchable, this is uncharted territory.<\/p>\n\n\n\n

This week, Canada Post and CUPW are back at the bargaining table after union members rejected the Crown corporation\u2019s \u201cfinal\u201d offer in a government-forced vote. The package promised roughly 13%, as reported by Global News<\/em><\/a>, <\/em>in wage hikes over four years, more part-time roles, dynamic routing and no mandatory overtime. CUPW says it\u2019s not enough. The overtime ban stays in place, and Canada Post admits the uncertainty is driving customers \u2014 including thousands of SMBs \u2014 into the arms of private couriers.<\/p>\n\n\n\n

For small business owners, waiting for Canada Post to fix itself isn\u2019t an option. Every late delivery is a potential lost customer. Lisa Graham, founder of Calgary-based YYC Beeswax, made the switch early: \u201cAnything that\u2019s going to take over two days, we\u2019re spending extra to ship with private courier services. It\u2019s the only way to keep customers happy,\u201d via Reuters<\/em><\/a>. <\/em><\/p>\n\n\n\n

It\u2019s a tough trade-off. Private courier costs can be double what Canada Post charges \u2014 but for many SMBs, customer trust is priceless.<\/p>\n\n\n\n

Private couriers smell opportunity<\/strong><\/h2>\n\n\n\n

FedEx is in full growth mode \u2014 setting up temporary sorting hubs, adjusting delivery routes and offering special rates to win over frustrated businesses. UPS isn\u2019t spelling out its play, but it\u2019s clearly picking up displaced Canada Post customers.<\/p>\n\n\n\n

The numbers tell the story. Canada\u2019s courier, express and parcel market was worth $16.74 billion in 2024 and is expected to hit $21.55 billion by 2030.<\/em> If the postal strikes drag on, analysts say Canada Post\u2019s share could fall into the teens by late 2026, according to analysts at Mordor Intelligence<\/em><\/a>. <\/strong>This isn\u2019t just about postage fees \u2014 it\u2019s about predictability. Reliable delivery keeps inventory moving, cash flow healthy and customers loyal.<\/p>\n\n\n\n

Kevin Kliman, President of Canadian Business at 91±¬ΑΟ, has seen the same pattern in other markets. \u201cWhen national delivery services falter, SMBs are forced into survival mode. You either absorb the higher costs or risk losing your customer base. Neither is sustainable long-term \u2014 and it\u2019s why competition in delivery is critical for small business resilience.\u201d<\/p>\n\n\n\n

But long-term, paying more for private couriers without raising prices will squeeze margins. Many SMBs are having to choose between protecting profits and protecting relationships.<\/p>\n\n\n\n

Right now, standing still is the biggest risk. Three moves to make immediately:<\/p>\n\n\n\n