By William Crooks
Local Journalism Initiative
With Canada Post workers voting on a final contract offer from their employer, the Canadian Federation of Independent Business (CFIB) is warning that another strike could be the final straw for many of the small businesses that still rely on the Crown corporation.
According to new CFIB survey data, nearly two in three small- and medium-sized enterprises (63 per cent) say they would consider abandoning Canada Post permanently if another strike occurs. The vote, currently underway, is set to conclude by Aug. 1.
“We hope that this will lead to the end of the current uncertainty regarding a potential strike at Canada Post,” said Jasmin Guénette, Vice-President of National Affairs at the CFIB, in an interview with The Record. “The previous strike impacted most of the small businesses and cost them between 75 million to 100 million [dollars] each day in higher cost, loss of revenues, and so on.”
Guénette noted that Canada Post’s last major labour disruption in 2024 triggered significant changes in how small businesses managed shipping and communications. “When there’s a strike, some small businesses shift to other courier services and they don’t come back to Canada Post,” he said.
While four in five CFIB members surveyed still use Canada Post, most do so out of necessity rather than preference. Seventy-three per cent use the service to send cheques, and 61 per cent use it for other types of mail. Over half cite lower cost (58 per cent) and accessibility (50 per cent) as key factors. However, only 25 per cent said they choose Canada Post for reliability, and just 9 per cent highlighted customer service as a strength.
Guénette warned that unless changes are made to how Canada Post operates, it will continue to lose ground to private sector competitors. In 2019, Canada Post held 62 per cent of the parcel delivery market in Canada. According to its most recent annual report, that share has dropped to just 24 per cent. Meanwhile, 73 per cent of small businesses now rely primarily on private companies for parcel delivery.
“There are certain things that private couriers do that Canada Post don’t—for example, they can deliver on the weekends,” Guénette said. “If Canada Post doesn’t change its business model and the way that they service the customers, unfortunately for them, they will continue to lose market share.”
The CFIB is calling for a wide-ranging overhaul of Canada Post’s operations, urging flexibility from both the Crown corporation and the union representing its employees.
“The union needs to show some flexibility,” said Guénette. “Maybe delivering a mail letter every day is not needed anymore. There’s a lot of things that should be reformed within Canada Post.”
Among his suggestions were evening or weekend delivery options and adjusting routes based on customer demand. “Hopefully the employer and the union will deal with this to ensure that the service remains,” he said.
Guénette also pointed out that many businesses in large urban centres, including Montreal and Sherbrooke, have access to multiple courier services. “But in remote communities, often Canada Post is the only service available,” he said. “Hopefully the union and the employer will find some middle ground so that those who need to be serviced by Canada Post can rely on it.”
In the wake of the 2024 strike, many small businesses took steps to reduce their reliance on traditional mail. Seventy-one per cent encouraged clients to adopt online communications and payment tools. Forty-five per cent turned to private couriers, while 27 per cent delayed sending certain mail or packages. Thirteen per cent stopped using Canada Post altogether during the work stoppage.
The CFIB warns that Canada Post’s ongoing losses—currently pegged at $10 million per day—are not sustainable. In the press release accompanying the survey, CFIB Director of National Affairs Christina Santini stated, “Canada Post’s current business model needs a thorough overhaul. It’s high time the federal government allowed Canada Post to implement the necessary changes so that it can be profitable and relevant.” She added that small business owners need long-term reliability and affordable rates in order to continue using postal services.
The CFIB survey was conducted online between June 26 and July 10, 2025, with responses from 2,317 member businesses. For a comparable probability sample, the margin of error would be plus or minus 2.04 per cent, 19 times out of 20.
Founded in 1971, the CFIB is Canada’s largest small business advocacy organization, representing over 100,000 members in every sector and region. The federation provides policy representation, business resources, and exclusive discounts to help small businesses succeed.
As the union vote wraps up in the coming days, Guénette said he is watching the outcome closely. “It’s going to be interesting to see the result and what it means for the future of Canada Post.”