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FOR IMMEDIATE RELEASE
Impact of the Canada Post strike on businesses surveyed by the Côte-de-Gaspé Chamber of Commerce on November 24, 2024
Gaspé November 27, 2024 - With 55,000 postal workers at Canada Post on strike since November 15, letters and parcels are not being processed, with the exception of government benefits. With negotiations temporarily suspended and the conflict likely to continue, the Côte-de-Gaspé Chamber of Commerce has been surveying its members since November 24 to assess the impact of the strike on their operations.
These are the four (4) main findings of the express survey:
1. Delay in customer payments
The strike has led to delays in receiving customer payments, which can affect companies' cash flow. These late payments can have a direct impact on companies' liquidity and hamper their day-to-day operations, leaving companies with few reserves or credit lines vulnerable.
2. Sending cheques
Some companies are still sending paper cheques, but these are being delayed due to the strike. Carrier charges can be high, depending on the frequency, volume and amount of cheques to be sent. Although the impact on relationships with partners and suppliers is significant, this can be resolved by alternatives such as bank transfers or other electronic means of payment. This option will force companies to make the digital shift that has not yet been made.
3. Impact on liquidity
Strikes affect liquidity, especially in cases where companies are waiting for payments by cheque or are still mailing invoices. The impact on liquidity is a critical issue, as it can affect the company's ability to cover fixed costs and maintain operations.
4. Online orders
The strike slows down the processing of online orders, especially over the holiday season. Although the impact on online orders during the holiday season is significant, it can be managed to some extent with alternative delivery methods (in person, in collaboration with another company used as a relay point of service, private carriers such as GLS, the bus, etc.). As the shortage of human resources is also an issue, these solutions will need to be properly communicated internally and externally. There is also an impact on companies that ship or receive small-format merchandise that does not necessarily need to be sent by private carriers before the strike, as they have an advantageous pricing system for packages of 5 lbs or more.
About the La Côte-de-Gaspé Chamber of Commerce
The Côte-de-Gaspé Chamber of Commerce is a non-profit organization (NPO) made up of a voluntary group of over 200 businesses and organizations in the Côte-de-Gaspé region (Murdochville, Grande-Vallée, Petite-Vallée, Cloridorme and Gaspé). It is a strong advocate of its members' interests with regard to public policy, and promotes business development in its community by contributing to the creation of an innovative and collaborative business environment. Its mission is to represent its members and to bring together, support and serve its members and partners through actions adapted to the socio-economic reality of its territory.
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For further information, please contact
La Côte-de-Gaspé Chamber of Commerce
Marie-Claude Brière, General Manager
direction@commercecotedegaspe.org
