Shopify has released an open letter calling on the federal government to “do whatever is necessary” to get striking Canada Post workers back to work ahead of the Black Friday/Cyber Monday (BFCM) weekend.
Open letter claims at least 67,000 Shopify-powered small businesses rely on Canada Post.
In the letter addressed to Minister of Labour and Seniors Steve MacKinnon, Shopify claimed at least 67,000 of its associated small businesses rely on Canada Post to fulfill orders, especially to rural areas and what Shopify calls a “monopoly” on P.O. box deliveries. Shopify added that MacKinnon must immediately intervene to “prevent a devastating blow to Canadian small businesses at their most critical time of year.”
Shopify attached the above image in the letter, claiming it illustrates domestic urban and rural orders (in blue and red, respectively) from Shopify merchants that were fulfilled by Canada Post from Nov. 1, 2023 to Dec. 31, 2023. Shopify said a 2024 map “wiped clean” due to prolonged strike action would “devastate” the economy.
The open letter follows 12 days of striking since The Canadian Union of Postal Workers (CUPW) and Canada Post couldn’t reach a deal on a new collective agreement. The 55,000 striking workers have so far resulted in an estimated 10 million undelivered parcels, according to The Canadian Press.
“You must immediately step in and do whatever is necessary to resolve this dispute, including binding arbitration or legislation allowing Canada Post to operate while negotiations continue,” the letter reads. “Minister, show us the government has some backbone to protect entrepreneurs.”
The open letter aligns with prior communications from Shopify CEO Tobi Lütke and Shopify president Harley Finkelstein posted on X after the strike was first announced on Nov. 15.
“If there was ever a time for the Government to take action, it’s now. Canada Post going on strike 2 weeks before Black Friday devastates small businesses,” Finkelstein said in an X post on Nov. 15. “If small businesses are the backbone of our economy, the Canadian [government] needs to show that they have one and force this to end now.”
Like many small businesses across the country, Shopify is heavily incentivized to see the strike end. Last year, the company set a $9.3-billion sales record over the BFCM weekend, a 24 percent increase from the same record-setting period in 2022.
According to the CBC, Canada Post says it can’t afford strike demands since it has lost a total $3 billion CAD since 2018, with $490 million of that loss occurring in just the first half of 2024. Meanwhile, CUPW is saying that Canada Post executives are still accepting bonuses, and that it’s possible to earn more money by expanding its services to include postal banking, senior check-ins, and an e-commerce platform. In addition to a pay raise in line with inflation, the union is demanding 10 paid medical days, improved rights for temporary employees, and harassment protections.
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While the right to strike is recognized under the Charter of Rights and Freedoms, the federal government has the power to order disputing parties to binding arbitration under the Canada Labour Code. The federal government may be cautious to exercise this power again, as it has already disrupted the collective negotiations of Canadian air, rail, and port workers this year.
The Teamsters Canada Rail Conference (TCRC) appealed the binding arbitration order imposed on Canadian National and Canada Pacific Rail workers in August, arguing that Charter rights were violated as a result of the federal government’s actions.
“These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will,” TCRC president Paul Boucher said in an August statement. “The right to collectively bargain is a constitutional guarantee. Without it, unions lose leverage to negotiate better wages and safer working conditions for all Canadians.”
Feature image courtesy Shopify.