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Royal Mail strikes are putting small businesses at risk of going bust as vital letters and parcels pile up in warehouses after strike days, business owners have warned.
Small businesses that use the postal service have been struggling in recent weeks, with thousands of orders delayed as well as complaints and negative reviews from disappointed customers.
Business owners have called for the Government to step in and resolve the bitter ongoing dispute between Royal Mail and the Communication Workers Union (CWU) over pay and conditions.
Many small businesses have been relying on a busy Christmas period to help boost revenues amid soaring energy costs and inflation as well as the fallout from the pandemic. However, Paula Weaver, who runs handmade gift shop Little Bun Designs UK said the strikes have made “a bad year even worse”.
She told i: “The Royal Mail strikes have been an absolute nightmare,” she said, explaining that she has over 200 parcels to send out for delivery before Christmas. She added that she “daren’t use Royal Mail due to the backlogs” and has been forced to look into other options.
She said she has the “upmost respect and support for posties” since her father used to be one, but now she feels her business is unfairly impacted. “This is not our fight and yet we’re the ones suffering,” she said.
Ms Weaver now plans to switch away from her contract with Royal Mail in order to save her business from going bust. She said: “I know many others who are closing now until January because of the strikes which makes me sad and angry.”
Albert Larter, the co-founder of Wakuda – an online marketplace for black-owned businesses – said there is a “huge risk” of businesses going bust due to the strikes, with many expecting the “worst Christmas sales period ever”.
He said: “Christmas is usually the time they get most of their sales, however with the recent strikes and more to follow, this has not been the case.
“Businesses are struggling to even get the raw materials they need in order to create the products. With the delays filtering through the supply chain it’s almost impossible for them to complete or accept orders.
“Some are currently being inundated with refund requests because they have not been able to fulfil orders within a set time. The longer this goes on a number of small businesses will have their worst Christmas sales period ever.
“There is a huge risk of them going bust. Some small businesses run on a tight scale, a good number of orders a month keeps them afloat. Some have opted to put business on pause until the New Year as the strikes have completely thrown things off for them.”
He called on the Government to “step in and help resolve the situation because small businesses will be hit the hardest” as they often cannot afford alternative delivery options.
When are the Royal Mail strikes?
CWU members who collect, sort and deliver parcels and letters walked out last week from Wednesday 30 November to Thursday 1 December.
The walkouts involve around 115,000 workers as the CWU asks for a pay rise that matches the soaring cost of living, with inflation currently at 11.1 per cent.
Royal Mail has offered a pay deal it says is worth up to nine per cent over 18 months, calling it its “best and final offer” but added “no talks are happening”.
The CWU has formally notified Royal Mail of a series strikes later in December, with the following dates affected:
- Friday 9 December
- Sunday 11 December
- Wednesday 14 December
- Thursday 15 December
- Friday 23 December
- Saturday 24 December
Natalie Quail, the founder of teeth-whitening company Smile Time, said the Government should help the two sides to “help reach a resolution and to move past the dispute in the interest of business stability”.
Her company sends over 3,000 orders per month and the Royal Mail strikes have caused thousands of parcels to be delayed, leading to customer complaints and bad reviews.
She said: “Royal Mail didn’t pick up on Black Friday, or the day before Black Friday, and also had strikes the week of Cyber Monday. And that has literally meant we’ve had thousands of orders delayed to our customers.
“Even when Royal Mail has finally picked up, it’s taking almost two weeks to get to our customers, I assume due to the backlog. That has resulted in many customers wanting to cancel, or get a refund, and effectively blaming us for the delay. And it’s really outside of our control.”
Ms Quail is now shopping around for other delivery services, having lost trust in Royal Mail.
She said she has sympathy for the strikers due to the difficult economic conditions but added that her “sympathy is being eroded with the scale of the impact” on her business.
Victoria Portwin, who runs a CBD oil business called CBD Angel, said she has resorted to ferrying orders around herself to customers who have almost run out of the alternative medicine which some people use to treat migraines, pain and seizures.
She said the strikes have been “catastrophic”, with orders delayed by up to 10 days, adding: “Whilst CBD is an alternative medicine, for some people, it is actually their medicine.
“I do end up driving around the country spending money on petrol on my own time to get the oils.”
Ms Portwin said she has given out around £200 of products for free to cover the Royal Mail delays over the past few weeks.
She said: “I want to make sure that my customers people are on a really good path, and that they do now sleep and they’re quite happy. I don’t want that to be disrupted.
“But all that said, I understand why they [CWU members] are striking. And I support their reasons for striking, and I support their right to be able to strike.”
Martin Gerhard – founder of online gift business Boostology – said he is currently £3,000 in debt on his personal credit card because his replacement business bank card has been stuck in the post since 30 November.
“I think postal workers generally do an amazing job and they deserve a fair wage but these strikes are costing small businesses who are also struggling too,” he told i.
Meanwhile, important legal documents have been among letters severely delayed, with Royal Mail employees telling i that tracked parcels have been prioritised over letters.
Thomas Tromans, 33, from Dudley, said the sale of his brother’s house risked being stalled after solicitor’s letters were stuck in the post for more than a week. He is a guarantor on his brother’s current flat so needed to sign the document in order for the sale to go through.
Sarah Dwight, a member of the Law Society’s Conveyancing and Land Law Committee, said “documents have been delayed” due to the strikes, forcing some clients to drive long distances to get them to the right place on time.
Tina McKenzie, policy and advocacy chair of the Federation of Small Businesses (FSB), urged unionised Royal Mail employees to meet with their employers to reach an agreement because small businesses are already struggling in the current economic climate.
“Disruption to postal services being added to the mix is not something that will be welcomed by small firms, especially during the festive period, when both receiving and sending out goods and products is crucial to margins,” she told i.
“Small businesses would be well-advised to plan ahead, to see if alternative methods of sending and receiving can be found. Customer communication will also be key – letting customers know as far in advance as possible when they should order by to avoid disappointment,” she added.
A spokesperson from the CWU said: “Postal workers appreciate the understanding that has been offered to them by the public.
“They don’t want to be on strike either but they are determined to resist the Uberisation of Royal Mail, which will represent a complete degradation of their working lives.
“Royal Mail CEO Simon Thompson did not turn up to the talks with the CWU that could have resolved these strikes – if he doesn’t want to meet, then the Board should take a more mature approach and thrash out a meaningful compromise to end this dispute.”
A Royal Mail spokesperson said: “The CWU is striking at our busiest time, cynically and deliberately holding Christmas to ransom for our customers, businesses and families across the country. We apologise to our customers for the inconvenience the CWU’s continued strike action will cause. Despite the CWU’s damaging industrial action, Royal Mail continues to enjoy a strong relationship with our customers. We thank them for their understanding.”
The company said that the delivery of most letters, except Special Delivery, would be suspended on strike days. Priority would be given to Special Delivery and Tracked24 parcels, as well as Covid tests and medical prescriptions “wherever possible”.
“Immediately following strike action, we have lifted the suspension of letter deliveries and prioritise the delivery of critical government mailings and NHS letters,” Royal Mail added.
The Department for Business, Energy and Industrial Strategy has been contacted for comment.
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