Small businesses in Canada are losing an estimated $76 million per day due to the postal service strike at Canada Post, which has halted mail and parcel services across the country for more than two weeks.

That adds up to at least $765 million in losses since more than 55,000 Canada Post workers walked off the job on November 15, according to the Canadian Federation of Independent Business (CFIB).

  • Negotiations between Canada Post and the Canadian Union of Postal Workers (CUPOW) broke down over compensation, benefits and the company’s insistence upon hiring temporary workers to expand delivery service to seven days a week, BBC reported.


Furthermore, on Black Friday, the United States Postal Service (USPS) announced it was “temporarily suspending” mail destined for Canada due to Canada Post “indicating that they are unable to process or deliver international mail or services as a result of the ongoing national strike.”

“It’s not Grinch who is about to steal Christmas,” says Corinne Pohlmann, executive vice president of advocacy at CFIB. “It’s Ottawa sitting idly on the sidelines while small businesses are losing crucial revenue and sales due to circumstances outside of their control.”

Promo Perspective

Multiple Canadian suppliers in the branded merchandise industry, including Ontario-based firm Coaster Factory, have told PPAI Media that the strike has affected their receivables.

“A small amount of our clients pay via check, so we’ve had trouble getting those,” says Ted Tablante, head of sales and business development for North America at Coaster Factory.

“Most of the orders we produce are shipped via UPS, FedEx or freight – not with Canada Post – so our customers thankfully aren’t experiencing delays in receiving their orders due to transit. For other businesses that rely on the postal service more heavily, they’ll be forced to look at other mail/courier options, which are usually more costly in comparison.”

The impact has been noticeable, and we’re just doing our best to work around it.”

Brian Scott

President, Le Tour de Spice

Even promotional products suppliers who don’t rely upon Canada Post are still feeling the ripple effect, though. For example, Ontario-based firm Le Tour de Spice ships most of its orders through UPS. However, due to the strain of the strike, UPS has missed the occasional pickup, adding an additional day to delivery, according to Brian Scott, president of Le Tour de Spice.

“The impact has been noticeable, and we’re just doing our best to work around it,” Scott says.

In addition to having some checks stuck in limbo, Ontario-based distributor Northern Branding Studio is unable to retrieve a couple products from the post office that were shipped via Canada Post before the strike. Plus, the firm had to eat the cost of re-producing a couple custom products (woven labels) for a pre-holiday project so that it can be delivered to the client on time.

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“I don’t think anybody expected it to go this long, so I believe there are some businesses that were late to contingency planning,” says Jen Beldam, founder and president of Northern Branding Studio. “It seems the corporation and the union are far apart on some key issues, so it’s hard to say when it’ll end.”

Ultimately, Canada Post offers many advantages for promo firms, such as being the only carrier to deliver to post office boxes and rural locations across the nation, according to Aaron Moscoe, CEO of Ontario-based distributor TPS Promotions & Incentives.

“Without its service, there is no obvious alternative for cost-effective and practical means of distribution for most businesses,” Moscoe says.

This effectively means some campaigns are on hold and may eventually be cancelled if the strike isn’t resolved promptly…”

Aaron Moscoe

CEO, TPS Promotions & Incentives

Unlike many carriers in the U.S. that provide flat rate shipping options nationally, Canada Post is also the only carrier to provide a flat-rate service nationally in Canada (albeit with significant restrictions on size), he adds.  “As a distributor that manages direct mail campaigns for our clients, this effectively means some campaigns are on hold and may eventually be canceled if the strike isn’t resolved promptly and if more costly distribution methods aren’t within the client’s budget,” Moscoe says.

“Plus, if you’re a Canadian distributor or supplier employee with intentions of traveling, especially to The PPAI Expo 2025, and you’re one of the estimated 80,000-plus Canadians with passports in the mail, you’re really hoping the strike gets resolved quickly!”

Will The Canadian Government Intervene?

Three quarters of small businesses, such as Northern Branding Studio, have been negatively impacted by the strike, according to CFIB.

  • Among those, 41% reported cost impacts totaling $2,000 in lost orders, more expensive delivery alternatives, late payments and the inability to promote their business at a crucial time of year.
  • More than two-thirds (69%) of small business owners want the Canadian government to introduce back-to-work legislation.


Tobi Lutke and Harley Finkelstein, CEO and president, respectively, of Canadian company Shopify, which helps businesses set up online stores, urged the government to intervene to “prevent a devastating blow to Canadian small businesses at their most critical time of year.”

Labor Minister Steven MacKinnon announced last week that mediation between the company and the union had been suspended because both parties remained “too far apart” to make further progress.

On Sunday, Canada Post announced that it had presented the union with a “comprehensive framework” for reaching negotiated agreements, which included proposals to bring greater flexibility to the company’s delivery model.

“It’s our hope that these proposals will reignite discussions and, together, with the support of mediators, help the parties work toward final agreements,” Canada Post said in a statement on its website.

The union responded by saying both parties have “provided adjustments to demands to the special mediator in hopes that he will restart the mediation process.”

  • Just a few days before the Canada Post strike began, MacKinnon intervened in the dispute between the International Longshore and Warehouse Union and the British Columbia Maritime Employers Association, forcing Canadian ports to reopen for fear of further economic damages after a weeklong work stoppage.