As a nationwide Canada Post strike reaches the one-week mark, the federal government is being urged by some to immediately step in to end the labour disruption.
The call from the Canadian Federation of Independent Business on Friday came as the Crown corporation reported yet another multi-million-dollar loss in the third quarter while it braces for a seventh successive annual loss this year.
More than 55,000 Canada Post workers went on strike last Friday, halting mail and parcel services across the country. Some post offices have also been shuttered amid the job action.
The Crown corporation and the Canadian Union of Postal Workers are holding talks this week with a special mediator, appointed by the federal government. But there has been little indication of an end to the labour dispute.
The CFIB, which represents 97,000 small and medium-sized business (SME) owners across the country, said the strike is negatively impacting Canadian businesses and wants Ottawa to intervene.
“The holiday season is crucial for these small businesses,” the CFIB wrote in a letter sent to Labour Minister Steven MacKinnon that was dated Nov. 20.
“SMEs cannot bear the costs of work stoppages in federally regulated sectors each time negotiations between a union and an employer are at an impasse.”
“We therefore urge you to intervene, just as you have already done twice this year, by imposing either binding arbitration or back-to-work legislation.
“Small business owners would like to see you act with conviction for the overall good of the country.”
Most Canadians (57 per cent) are also in favour of the government intervening in the ongoing postal strike, according to a Leger poll released this week.
The federal government has urged both parties to reach a collective agreement. Ottawa has not indicated that it will consider back-to-work legislation or binding arbitration to end the strike.
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Speaking to reporters in Ottawa on Wednesday, MacKinnon said: “We only have one strategy with Canada Post, and that is intensive mediation and we hope to bridge the gap between the parties.”
MacKinnon’s press secretary told Global News Thursday evening that at the moment, the federal government is closely following the negotiations between the two parties.
The federal government has intervened in recent work stoppages.
Earlier this month, MacKinnon imposed binding arbitration to end shutdowns at Canada’s largest ports in British Columbia and Quebec. In August, he did the same to bring an end to the work stoppage at the country’s two largest railways.
Canada Post reports Q3 loss
The strike comes as Canada Post has been struggling amid steep financial losses.
On Friday, the national mailing service reported a loss before tax of $315 million in the third quarter of 2024 amid a decline in parcel revenue and volumes.
Canada Post’s Q3 revenue from parcels dipped by 5.8 per cent and volumes declined by six million pieces, or 9.6 per cent, compared with the same time last year.
“An increasingly crowded and highly competitive ecommerce delivery market continued to impact Parcels results in the third quarter of 2024,” Canada Post said in a news release.
“While Transaction Mail volumes continued to erode, revenue rose due to a regulated stamp rate increase.”
Canada Post is anticipating another “significant loss” this year, which would be the seventh successive annual loss for the company.
© 2024 Global News, a division of Corus Entertainment Inc.
