The Alberta government is growing restless with the Canada Post strike and wants the federal government to step in – even if it means employing back-to-work legislation.
“The federal government must use every tool at its disposal and take immediate action to end this strike before it harms more Canadians and further damages the livelihoods of countless Albertans and Alberta’s economy,” said Alberta Jobs, Economy and Trade Minister Matt Jones.
The federal government has so far not openly entertained ordering striking workers back to work. The NDP has said it would oppose such a move, insisting that postal workers have a right to bargain their way through the impasse.
Earlier this year, the government imposed back-to-work orders to end port lockouts and rail strikes, triggering federal court appeals from the affected unions.
In a statement Wednesday morning, Jones specifically called out the strike’s effect on small- and medium-sized businesses and charities, especially with Christmas approaching.
“Each day this situation goes unresolved, it intensifies the long-term challenges for Alberta’s businesses, consumers, and the economy,” Jones said, pointing out how small and medium businesses make up 99.8% of Alberta companies, representing 13% of Canada’s small- and medium-sized businesses.
The Canadian Federation of Independent Business highlighted that the strike is costing small businesses in Canada $76.6 million daily. The total cost passed $1 billion on Dec. 4.
Jones said that as of Dec. 11, the cost has surpassed $2 billion.
He added that the strike has hindered charities from receiving donations and staying connected with their supporters.
For example, Hope Mission in Edmonton said that mailed-in donations have stopped amid their most critical fundraising season, putting the most vulnerable at risk.
Canadian Federation of Independent Business policy analyst Bradlee Whidden told True North that the strike could be the straw that breaks the camel’s back for many small businesses.
He said that three-quarters of small businesses have been impacted, and half of those reported costs of $2,000 or more in lost orders.
“This really does hurt small businesses who might see consumers go to Amazon or large shipping giants for more reliable service,” said Whidden.
He added that while businesses are dealing with the nightmare of retrieving their inventory from Canada Post warehouses, they also have to go through their inventory to earmark items for the GST/HST tax exemption, only to be forced to repeat the process in two months to undo it.
The Canadian Union of Postal Workers began a strike for its 55,000 workers nearly four weeks ago.
The union presented new proposals to Canada Post on Monday. Among them were wage increases of 19% over four years, additional medical leave, and improved rights for temporary workers.
Canada Post replied on Wednesday, saying that the offer would add billions in unsustainable fixed costs. They initially countered with an offer of an 11.5% wage increase over four years.
“Added up, all the demands in CUPW’s latest offers would cost more than $3 billion over four years, at a time when the postal service is already recording large financial losses,” reads Canada Post’s press release.
The Crown corporation added that it has lost more than $3 billion since 2018, resulting from seven years of consecutive losses.
A spokesperson for the federal Minister of Labour told True North that negotiated agreements are the best way forward.
“Canada Post and CUPW need to reach a deal to put an end to this dispute. In order to do that, parties must get back to the negotiating table and be ready to resume talks. Canadians are counting on them,” said the spokesperson.
The Canadian Union of Postal Workers was not immediately available for comment.
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