Strike hurting local businesses

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This article was published 03/12/2024 (329 days ago), so information in it may no longer be current.

Businesses in Brandon are continuing to feel the brunt of the ongoing postal strike, with many reporting increased shipping costs, declining sales and frustrated customers.

Morgan James, owner of Leatherwood Custom Workwear — a Brandon-based company specializing in custom clothing and hats — told the Sun the strike has upended the company’s shipping processes.

“We ship over 100 orders monthly across Canada, from Vancouver to Halifax and even the Northwest Territories,” James told the Sun in an interview on Monday. “We’ve always offered free shipping through Canada Post, but now we are forced to use UPS, and the (cost) difference is staggering.”

In an email sent to the Sun on Monday, Canadian Federation of Independent Business (CFIB) Prairies spokesperson Brianna Solberg said the strike, now two weeks in, is costing the small- and medium-sized business sector in Manitoba a lot.

“Small businesses have lost around $34.3 million or $3.43 million each business day. But some businesses have indicated they think their losses are much greater,” she added. “One MB business indicated they were losing about $3,000/day in what should be the busiest time of year for them, because they are unable to mail out flyers, and they are unable to receive inventory, or ship orders out to customers.”

The Canadian Union of Postal Workers (CUPW) began a national strike on Nov. 15 after failing to reach an agreement with its employer Canada Post. The dispute, which centres around wage increases, pensions and medical leave, started last year.

Over the weekend, Canada Post said it’s waiting for a response from CUPW, which represents some 55,000 striking workers, after it offered a new framework for negotiations.

James recounted a recent instance where shipping a package to the Northwest Territories cost an additional $155, compared with Canada Post rates — a shipping cost that wasn’t quoted to the customer initially. With each month’s shipments often weighing 50 to 60 pounds, the cumulative cost impact is significant.

“While I haven’t experienced direct monetary losses, increased shipping costs and missed delivery timelines have resulted in lost sales,” he added.

Christine Steele, owner of Blush Silks, which sells luxury silk pillowcases and accessories, told the Sun the disruption has jeopardized her business model.

Previously, Steele was able to send packages through letter mail at a minimal cost, allowing her to offer free shipping to customers.

“Now, every package must be sent as a parcel, which raises the cost from $3.50 to $11 or more,” Steele told the Sun. “The higher shipping rates have driven away customers because nobody wants to buy a $30 product and pay $13 for shipping.”

Steele estimated that sales have “dropped by 40 per cent since the strike began,” with many customers abandoning their online purchases at checkout due to high shipping fees.

“Some packages end up costing me more to ship than (what) I charge for them, even with a flat shipping rate,” she added.

For some local businesses, the strike may represent a turning point in their relationship with Canada Post.

However, James pointed to the prolonged strike having a silver lining: improved service quality from UPS.

“UPS charges more, but they ship faster, and the staff are much more accommodating than Canada Post,” he said. “Unless we’re shipping to PO boxes, there’s no way I’m going back.”

Like James, Steele said she would return to letter mail for items that fit through a mail slot.

“I can go back to offering free shipping to my customers by using stamps for some of the items I sell,” she said. “But would likely not return to traditional parcel delivery because I have discovered a smaller courier company, whose parcel rates are comparable or even slightly cheaper.”

In addition to cost and sales concerns, businesses are also dealing with considerable logistical challenges. Steele recounted the recent challenges faced by a Portage la Prairie boutique, whose packages are stuck in transit or their orders have been cancelled due to delays. “It’s a widespread problem.”

CFIB’s Solberg also said the ongoing strike has negatively impacted 77 per cent of small businesses in the province. She added that among the businesses impacted, a third reported cost impacts totalling around $2,500 in lost orders, more expensive delivery alternatives, late payments and an inability to promote their business at what is typically a crucial time of year.

“Nearly 73 per cent of Manitoba small business owners want the government to introduce back-to-work legislation,” said Solberg.

» aodutola@brandonsun.com

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