MONTREAL — Last week, Justin Trudeau said out loud what many were wondering as the postal strike dragged into its fourth week. “It is endangering the long-term viability of Canada Post as a service that Canadians rely on,” the prime minister said. Speaking to reporters in Halifax on Dec.
9, Trudeau warned that the country could “go through a complete Christmas season and everyone figures out alternatives” to the national mail service. In effect, the strike may have pushed some customers away for good, leaving the cash-strapped Crown corporation in even worse shape and forcing a big shift in strategy. Set to end on Tuesday after a ministerial directive and resultant labour board ruling, the month-long work stoppage saw the daily shipment of millions of items lurch to a halt.
It prompted tens of thousands of small businesses and individuals to turn to private carriers for delivery of their packages. Lost customers Many companies will likely return to Canada Post due to its low shipping rates, but others who find efficient alternatives in regional couriers may never come back, said Ian Lee, an associate professor at Carleton University’s Sprott School of Business. “Those parcel companies will see this as an opportunity to gain new customers.
They may shave their pricing down a little bit to try to be a little bit more competitive,” he said, citing carriers ranging from FedEx and UPS to upstart electric bike couriers. “Canada Post is going to lose business.” I.
