How business can deal with mail strike
Tips include online transactions, couriers, if July 2 walkout occurs
Unionized workers at Canada Post are in a legal strike or lockout position from July 2 if an agreement has not been reached.
Canada Post and the union have been in negotiations since December for its 50,000 delivery and plant employees.
Union president Mike Palecek said the union’s main issues are with Canada Post’s decision to offer new employees only definedcontribution pensions and what it calls a two-tier pay scale for urban and rural mail carriers.
Canada Post said the definedcontribution pensions would only apply to incoming workers, adding that the two sides also can’t agree on the hiring of temporary and part-time delivery employees for evenings and weekends.
What does a Canada Post strike mean for small business? “Where the rubber really hits the road is in terms of dealing with vendors and suppliers,” Richard Truscott, Canadian Federation of Independent Business vice-president for B.C. and Alberta said. “A lot of the business to business transactions are still conducted in paper form.” What can business owners do?
Set up bank accounts so you can transfer money electronically. “It could represent a cost savings,” Truscott said. “Interac e-Transfer is an easy way for business to conduct transactions at a low cost without involving snail mail.”
Think longer term. “This is not the first time we’ve seen disruption in postal service. It’s certainly not the last,” Truscott said. Moving your payables and receivables online will take an investment in time and effort to integrate bookkeeping and analytics systems, but “it can certainly be worth the effort,” Truscott said.
Checkout the CFIB’s Zoom Ship R. ca, a shipping aggregator that helps member businesses find the best courier service for a particular parcel. Couriers represent “a big cost increase for small business and “can be three or four times more expensive than Canada Post shipping, Truscott said. When was the last day for mail delivery? The last day was Thursday. Who can help?
If a Canada Post strike is confirmed, the CFIB will immediately contact banks and insurance companies to seek payment flexibility and some forgiveness on behalf of members. “In the past, they’ve extended terms, they’ve allowed grace periods, waived late fees,” Truscott said.
Courier companies like UPS are ramping up their services in anticipation of increased demand. “We do expect to see a spike in volume,” UPS Canada vice-president Strategic Alliances Nicolas Dorget said. “It’s like Christmas in July. Things are significantly different than they were back in 2011 (when Canada Post last had a labour dispute).”
UPS has almost 900 “access points” across Canada that serve as drop box or pick up locations. The company is also offering a 30 per cent discount to customers who drop off at an access point. UPS has been working with several larger businesses to provide long-term alternatives to Canada Post.