Small business alarmed by Canada Post price hikes

Toronto, December 11, 2013 – The Canadian Federation of Independent Business (CFIB) is alarmed to learn of massive price hikes at Canada Post as part of its Five-point Action Plan. 

“Introducing massive lettermail price hikes for residential and business consumers is not the way to rescue a failing government entity,” said Dan Kelly, CFIB president. “These hikes will have a significant impact on many small businesses that use the mail to connect with customers or invoice and pay suppliers.”

In an October 2013 survey of small business owners, it was found that 40 per cent send at least 50 pieces of lettermail per month and 98 per cent still use lettermail every month.

“61 per cent of small business owners said sending and receiving mail was very important to their business operations and a further 30 per cent said it was somewhat important,” Kelly said.  “Three quarters of small firms said they oppose significant price hikes like the ones announced by Canada Post today.”

With respect to ending door-to-door delivery, two-thirds of CFIB members supported a move to community mailboxes in the recent survey. 

“While electronic communication has undoubtedly created financial pressures for Canada Post, ridiculous wage, benefit and pension entitlements are the real root causes of the problem,” added Kelly.  “While the plan takes some baby steps on Canada Post’s cost structure, the corporation should be working far faster to address its wage and pension problems rather than driving more customers away from using its services through giant hikes. This should be a lesson for governments and public sector unions of the folly of ignoring massive unfunded pension liabilities and high wage structures.”

To arrange an interview with Dan Kelly, please contact Al Maggi at 416-222-8022 or   

CFIB is Canada’s largest association of small and medium-sized businesses with 109,000 members across every sector and region.