Canada Post have gone on a nationwide strike last Friday, and the retail industry in Canada might be impacted by the decision.
“This is the busiest time of year and a lot of Canadians do online shopping and rely on Canada Post to get those goods to them in time for the holidays. So it’s a big concern.” says Vice-President of marketing & member services of the Retail Council of Canada Santos Ligotti.
“We’re worried about a work stoppage because it’s one of the major parcel deliver players that retailers use especially small businesses and if you think about it, a lot of small retailers in rely on Canada Post to get their orders to their customers so, it changes the economics of a business model because then they have to start looking for alternatives that could be pricier.”
The Canadian Union of Postal Workers (CUPW), had issued a 72-hour strike notice with Canada Post earlier in the week, where Canada Post Corporation responded hours later with a lockout notice from offices if an agreement is not met, which led to the CUPW taking action Friday.
“We respect collective bargaining rights that organizations and individuals have, but our goal is to make sure that there’s pressure put to make this sort of resolution sooner rather than later.”
busy mall with groups of people Credit: Flickr
Ligotti continues to talk about alternatives that retailers should think about as the strike continues.
“Shopping in-store, perhaps ordering online and in-store delivery. If one store doesn’t have it, could it be delivered to another store so that the customer could pick it up? Virtual store shopping is something retailers do offer and some consumers can see what’s available in store and buy it or gift cards are even an option as well.”
The Retail Council also speaks to Canadians every year to ask them how they feel about holiday shopping and what should be done better.
“22% of Canadians have already begun their holiday shopping, with 12% shopping year-round. And November is the busiest shopping month, but, that takes us from all of November and into December. The largest proportion of their holiday shopping budget is done in store at 62%. 38% of Canadians have told us that they hold off until those final days of December to do their holiday shopping.”
“Encouraging driving traffic to the store, having the ability to pick up in store is a great way for the smaller businesses to have a more successful season withe strike.”
On Friday, the strike across the country saw an estimate of around 55,000 workers participating. The tough decision came after over a year of bargaining with little progress.
This strike does disrupt the season because retailers have to scramble to find alternative ways to get packages delivered, and consumers have expectations to get those packages delivered. It forces the retailers to look at more creative solutions which could cost more money, which is not always something that consumers want. It’s going to have to be sort of a balance between coming to the right resolution quickly and then being able to move those packages through, and then moving those packages quickly through.”
The workers participating in the strike are fighting for fair wages, safe working conditions, the right to retire with dignity and expansion of services at the public post office.
