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Postal strike a hit to small businesses: Federation Date: 6/3/2011 |
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A strike by Canada Post workers is likely to have a big impact on the country's small to medium-sized businesses and may cost as much as $250 a day per company, the Canadian Federation of Independent Business says. Despite the increasing use of email and private courier services, many small companies still rely heavily on Canada Post services. If the strike is prolonged, or if it spreads nationwide, rather than on a rolling region-to-region basis, the disruption will be major, it said. "Compared with postal strikes in the past, the cumulative effect will be less serious as there are now alternatives," said Dan Kelly, senior vice president of legislative affairs at the CFIB. "However there are still many sectors of the economy and many different types of firms that will be hit." The businesses likely to feel an immediate impact are those operating in package delivery, such as online retailers. But a significant number of smaller firms also still use the mail to send invoices and receive payments by cheque, which is still one of the most cost effective ways to do business. "There will be significant cash flow issues right away," he said. Canada Post workers walked out in Winnipeg late Thursday after unions and management failed to reach agreement over working conditions. The strike is scheduled to spread to Hamilton, Ont., Friday night. The Financial Consumer Association of Canada warns Canadians to pay close attention to any bills that are likely to come due in the next few weeks to avoid being landed with late payment fees or interest charges. "Consumers should take steps to ensure they are aware of the amounts owed and the due dates, and arrange to make the payments by the due dates," it said. The Office of the Superintendent of Bankruptcy also warned the strike would disrupt the delivery of notices and documents related to insolvency proceedings. It said during the strike period all notices must be served personally, by courier, fax or electronically. Although private courier services are likely to see a bump in business, they won't have enough capacity to make up for the gap left by the post office, Kelly said. "Some may be able to ramp up for existing clients, but not necessarily to take on new," he said. |
| Source: Winnipeg Sun |
