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The end to the recent Canada Post strike came as welcomed news to many businesses but it has inevitably raised concerns about the reliability of one of Canada’s primary delivery services.

While strikes are not uncommon, the disruption they cause can have lasting effects on stakeholder confidence. For many businesses, especially small and medium enterprises (SMEs), this disruption may have eroded trust in Canada Post as the overall impacts continue to be tallied. 

“This has been totally devastating to us and our 900 customers,” says Frank Mosey, owner of Tstone Mailing Inc., a Cambridge-based direct mailing business. “Currently, we have lost about 250K in revenue and that pales in comparison to what our customers are experiencing.”

He is not alone. According to Canadian Federation of Independent Business (CFIB) President Dan Kelly, smaller firms had been losing $100 million per day with a total damage of $1.6 billion since the month-long strike started Nov. 16.

“Nearly three-quarters of small firms report they will reduce their dependence on Canada Post going forward, making it even more challenging for the corporation to operate in the future,” he was quoted by the Financial Post.

Reliability an issue

To restore confidence, Canada Post will need to demonstrate its reliability in the months ahead. Proactive measures, such as transparent communication, operational improvements, and compensatory programs for affected businesses, could help mitigate lingering concerns.

“There’s no question about it, there is a lot of Canadian businesses that aren’t going to have faith in the Canadian postal system any longer and they are going to try and find alternative solutions; whether it’s through technology or whether it’s through other services that are available,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “I think the message to Canada Post is ‘you’d better fix what’s wrong’. Canada Post can't keep losing $750 million dollars a year and continue to operate and really needs to figure out how to do things better.”

While he believes Canada Post workers deserve a wage increase and to participate in a fair negotiation, he says the impact of this labour dispute reached the critical stage very quickly and that support for the 55,000 striking Canada Post workers rapidly waned as the strike dragged on. 

Key bargaining issues have centred around potential expansion into weekend deliveries, with the two sides at odds over how to staff the expansion, plus wage increases, a cost-of-living allowance, and more job protections. Canadian Union of Postal Workers (CUPW) members resumed operations Dec. 17 under the terms of the current collective agreements until May 22, 2025.

Businesses need predictability

During the strike, the Canadian Chamber of Commerce network sent two letters to Labour and Seniors Minister Steven MacKinnon and Public Services and Procurement Minister Jean-Yves Duclos, calling for intervention from the Federal Government to end the walkout. The letters were signed by Chambers and Boards of Trade nationwide, including the Cambridge Chamber.

“According to Statistics Canada’s Canadian Survey on Business Conditions, 90 percent of businesses that recently experienced supply chain obstacles expect those difficulties to either persist or worsen over the coming three months,” the second letter dated Dec. 11 stated. “Businesses need predictability in our supply chains, and yet another labour disruption has unfortunately continued the alarming trend of work stoppages limiting Canada’s ability to deliver goods. This issue extends far beyond gifts and holiday cards; it affects the viability of small businesses and families’ livelihoods.”

Greg agrees and says Canadian businesses should not be held responsible for Canada Post, especially if talk of a potential bailout surfaces if the Crown corporation can’t make the necessary repairs to its financial house.

Shipments continue to shrink

“I think Canada Post has to be responsible for itself. Canadian businesses will support it if it takes that responsibility and does the things it needs to do in order to become profitable, or at least break even,” he says.

In terms of finances, according to its 2023 Annual Report Canada Post recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022 and predicts larger unsustainable losses in the future unless structural challenges with its operating model are addressed.

Also, the postal service’s share of the parcel market has fallen to 29 per cent from 62 per cent before the COVID-19 pandemic, as Amazon and other competitors seized on skyrocketing demand for next-day doorstep deliveries. Canada Post’s shipments have shrunk by nearly a quarter since 2020 to 296 million parcels in 2023.

“Businesses are fed up with government agencies and institutions who leave them in a lurch at a very difficult time and they’re going to try find solutions that will give them a permanent fix to the problem,” says Greg. “I’m sure there are many Canadian businesses that have already done that.”

The race is on to determine who will represent Cambridge residents for the next term at City Hall.

Although the municipal election will be held Oct. 24, advanced voting begins Oct. 6 providing many of those seeking a seat on City Council a limited amount of time to garner support in their quest to make a difference in how our community remains a great place to live and do business.

“I think every level of government is important to business,” says Cambridge Chamber of Commerce President & CEO Greg Durocher. “There are federal, provincial, and municipal regulations that mitigate the growth of business and business owners need to pay very close attention to every level of government and participate by voting or campaigning, or supporting, or whatever they need to do to stabilize their business within the confines of Canadian democracy.”

In Cambridge, three new councillors will be seated at the table with the potential for several others if the incumbents fail to retain their positions. But whether the prospect of massive change around the council table is enough to sway more residents to vote remains uncertain since traditionally, municipal elections garner a lower voter turnout than provincial or federal races. In the last municipal race in 2018, voter turnout in Cambridge was 32.4% compared to the provincial average of 38.30%. Compare this to the recent provincial election which experienced a voter turnout of about 43.5%, one of the lowest in decades.

“Media tend to focus on national or provincial elections, and of course those are organized by political parties who are able to mobilize an enormous amount of activity and intention because they can spend a great deal of money and voters can easily identify who the political operatives are,” explains Dr. Dennis Pilon, Associate Professor, Faculty of Liberal Arts & Professional Studies – Department of Political Science at York University. “When you look at it from the point of view from the voters, the challenge they face is that it’s very difficult to get informed about what’s really at stake. For voters to work out what each individual (municipal) candidate represents without a party label is somewhat challenging.”

As well, Dr. Pilon is candid when he talks about the legislative controls at the municipal level, noting even their ability to determine land uses can be circumvented by developers through the Ontario Municipal Board process.

“When we look at how the founders of our country and current federal and provincial politicians look at local government, they deliberately made it the weakest level of government,” he says. “It has very little independent power and has almost no fundraising capacity and is completely controlled by the provincial governments.”

Despite that, Greg notes the fact municipal governments are responsible for many elements –waste collection, police, fire service, roads, water and sewer, snow removal – that provide business owners with the ability to operate their businesses.

“They make the community safe and habitable, so the people you need to run your business want to live in your community,” he says. “I think businesses should encourage their employees to get out and vote because local government is the one level of government that truly affects their everyday lives.”

But inspiring people to vote in a municipal election can be difficult.

“It’s not that people don’t care and are not passionate,” says Dr. Pilon. “But often it takes a huge issue to catalyze the public and give them a focus for their concerns.”

For example, he says the proposed construction of the controversial Spadina Expressway in Toronto in the late 1960s and early 1970s, and more recently the amalgamation plans outlined in former Ontario premier Mike Harris’ ‘Common Sense Revolution’ in 1995 mobilized an enormous amount of people.

“You have to have a big issue that’s going to affect the majority of people, and thankfully, we don’t have those big issues,” says Greg, adding even the approval of the LRT didn’t garner as much concern as expected. “When there are those neighbourhood issues, they generally don’t drive people to the polls.”

Dr. Pilon agrees and notes that even the current housing and homelessness issues facing most communities is likely not enough to inspire more people to vote.

“Historically, when we look over the 20th century, the market has had an uneven ability to respond to housing needs again and again. It’s not a new problem and not one that municipalities have the finances to deal with so there you’ve got this mismatch,” he says, adding it’s a difficult issue for local candidates to succeed with at the ballot box. “There will be no accountability on the issue because there’s very little that municipalities can do.”

Dr. Pilon says ‘dramatic events’ that rise above the ‘noise’ are needed to mobilize voters at the local level, which is difficult due in part to media cutbacks.

“A lot of local newspapers have taken a hit over the past decade, so people aren’t receiving as much local council coverage and that makes it difficult for them to find out what’s going on,” he says.

To encourage more voter participation, Dr. Pilon recommends several potential changes including allowing the formation of ‘slate’ parties in Ontario, similar in nature to what is allowed Vancouver, B.C., as well as reforming campaign finance laws to prevent developers from having too much ‘pull’.

“Another reform that would make a big difference is stop reducing the size of councils,” he says, referring to Premier Doug Ford’s reduction of wards in Toronto. “What kind of impact is that going to have on representation?”

In terms of representation, Greg says a party system is not the answer at the municipal level.

“People are there representing their neighbourhoods and community, their friends and family and the businesses they shop in,” he says, adding a party system doesn’t lend itself to this type of scenario and that leaving their own political ‘baggage at the door’ is key for a successful council candidate.

“You’re not looking for someone with a platform of ideas as much as someone who has leadership and communication skills and can deliver on the interest of the neighbourhood. You want an individual who is compassionate and understanding and can also communicate well to upper levels of government to make sure that the community’s broader needs that may relate to provincial or federal issues are understood and addressed as best they possibly can.”

To learn more about the 2022 Municipal Election, visit the City of Cambridge.

The next Ontario election maybe three months away, but it’s more than clear political leaders have already begun to jockey for position as COVID-19 restrictions continue to lift and numerous announcements pertaining to proposed legislative changes surface.

Whether it is promising more money for transit projects or getting rid of licence plate sticker fees, these types of political announcements says Darrell Kennedy, a political science instructor at Conestoga College’s School of Interdisciplinary Studies, are part of our democratic process.

“They (politicians) are vying for our votes,” he says, adding this type of tactic is often framed in a negative way. “I tell my students we should be more concerned about holding them to their promises as opposed to why they are making promises.”

When it comes to the politics leading up to the June 2 election, Darrell says the key issues surrounding the campaign may hold a few surprises.

“I think there is a lot of noise surrounding this election and I think much of that noise involves COVID-19,” he says. “However, we underestimate how forward-thinking people are. They are tired of talking about COVID-19, and they want a way out.”

Darrell says despite varying opinions regarding how Ontario Premier Doug Ford’s Progressive Conservatives approached the pandemic, the electorate – as well as those in businesses impacted by it – have already made up their minds over the course of the last two years regarding this issue.

“I don’t think this election is going to be swayed either way on what your opinion is of how Doug Ford handled COVID-19,” he says, noting he expects it will still be used as a ‘weapon’ by the other parties. “I think it is going to be a war of attrition and as we approach June, we are going to see the Ford government use Ontario’s opening up as a way to take away votes from the other parties.”

Darrell says the opposition parties could almost be classified as ‘victims’ of their government position during the last two years because they have an obligation to oppose the government and have done just that – referring to COVID-19 as a political ‘hot potato’. 

“I think the stars of have kind of aligned for the PCs in that when this election occurs in the next three months, they are going to be able to offer things to voters,” he says. “I think the other parties right now only have a few tools in their toolbox they can use to attack Doug Ford and a lot of it is in the past.”

Darrell says there are many issues political contenders could be focusing on, noting that housing is a key concern for his students – most aged 18 to 25 - as opposed to COVID-19 or even the environment.

“They grew up with it,” he says, referring to concerns surrounding climate change. “A lot of the younger generation have a fear about not being able to own a house or even having adequate shelter.”

The Ontario Housing Affordability Task Force, which recently outlined more than 50 recommendations in a report, says housing prices have nearly tripled in the last decade in Ontario. According to the report, the average house price in this province at the end of 2021 was $923,000 compared to $329,000 10 years ago. The task force has called for the construction of 1.5 million homes in the next 10 years.

“I hope housing is the issue people latch on to because it affects business as well,” says Darrell. “If you can’t afford the house you are living in you can’t afford to spend money in the community you are living in.”

To be successful in the election, he recommends Ontario’s political leaders focus on housing and childcare and other ‘regular’ issues that may have been brushed aside during the pandemic but are very important to young families.

But just as important, Darrell says the party that does not spend the campaign ‘demonizing’ the others in the media could be very successful.

“I think people are starting to get a little bit more wary of how the media portrays different groups and we all have a sense of which parties they may lean towards,” he says. “I think we kind of underestimate the electorates’ knowledge of the difference between the parties.”

Darrell says forward thinking is the best tactic for a successful political leader to use.

“Ontario has a lot of things it needs to do better and solve,” he says. “But I think the party that focuses more on those sorts of things as opposed to how COVID-19 was handled is going to turn out to be the winner.”

Today Cambridge will Elect its Political Leadership for the next 4 years.

Get ready, they'll be knocking on your door looking for your vote. HOWEVER thisyear you don't need to go out and vote, you can vote in your jammies. That's right, ONLINE and Telephone voting is here in Cambridge. Odd that we are technically so far ahead of those other areas of our Region. Look, the internet is over 25 years old (in our homes), this is the 21st Century, I should be able to vote in my pajamas, its about time!