If we’re being honest about Canada Post, it’s still unclear what the organization would look like without the influence of the Canadian Union of Postal Workers (CUPW). While unions have historically played a role in protecting workers, the CUPW’s rigid stance is a major reason for Canada Post’s ongoing financial and operational challenges.
I often point out that many Canadian leftists demonstrate a remarkably low financial IQ — something we saw reflected in the last federal election. In contrast, those of us in the private sector are holding out hope that Mark Carney, despite his background, is simply using ideological rhetoric to rally support from the left — and that he might, in practice, lead Canada into economic strength. On paper, however, Carney appears poised to become one of the most controlling and centralizing prime ministers in Canadian history.
Privatization in Canada comes with serious complications
Privatization in Canada comes with serious complications, especially given our massive landmass and sparsely populated rural regions. Consider Bell Canada: it maintains near-monopoly power by pointing to its service to remote areas that would otherwise be unprofitable in a free market. The same logic applies to Canada Post.
If Canada Post were privatized or operated like a company such as DHL, it could simply refuse to service rural areas or charge the true cost of delivery — prices that would be unaffordable for many Canadians. While technology may eventually help close this gap, right now, CUPW is a major reason why Canada Post lacks operational flexibility and faces ongoing financial woes. Canada Post’s proposals often appear reasonable to any rational reader, but CUPW tends to reject them based on ideological grounds rather than sound financial logic.
CUPW is like a spoiled child – unsustainable price control models
From a negotiation standpoint, giving in to CUPW’s demands repeatedly has created a dynamic similar to spoiling a child. Once an organization or union is allowed to dictate terms without accountability, expectations become entrenched, and the incentive to act responsibly disappears.
To illustrate the dysfunction: imagine a child demanding candy for breakfast, lunch, and dinner. The parent, eager to avoid conflict, gives in. Eventually, the child refuses nutritious food altogether. Fast forward — that child grows into an unhealthy adult, shocked by the consequences. That’s the trajectory CUPW is putting Canada Post on — refusing discipline, accountability, or change.
CUPW benefits from Canada Post’s monopoly and price controls in a way that’s unique to public sector unions. When CUPW speaks about its mission, it cloaks itself in lofty goals like “change for good,” suggesting that their gains will somehow uplift private sector workers too. But that’s a fantasy. In the real world, their economic demands would bankrupt any private courier. No courier can afford to operate with CUPW’s philosophy — and if they tried, they’d either exit the market or pass costs to consumers who simply wouldn’t pay.
This is why I believe CUPW’s behavior is unsustainable, and something Mark Carney will have to confront early in his tenure. The question is how fast and how decisively he’ll act. Justin Trudeau let a previous strike drag on for months, damaging small and mid-sized businesses and accelerating their exit from Canada. That can’t happen again.
Donald Trump seeks to take more Market Share From Canada
Especially now — as Donald Trump aggressively seeks to absorb market share from Canadian businesses — a Canada Post strike would deal another blow. When Canada Post halts operations, private couriers raise prices, and foreign players are incentivized to enter the market. Canada Post is already struggling with volume declines and heavy losses on parcel delivery. This situation screams bankruptcy risk, and CUPW appears to be banking on a bailout — at the worst possible economic moment.
Although Carney talks about increased government spending, his reputation is that of a numbers guy. His handling of Canada Post will likely serve as his first real test. If he lets this issue linger for months, we’ll get a clear signal about his leadership style and his priorities.
My own position is clear: Canada Post should be stripped of its Crown corporation status and made directly accountable to voters. I witnessed firsthand in Ontario how teachers’ unions were reined in when voters had finally had enough. Crown status is a privilege — not a shield from accountability. CUPW is abusing that privilege.
Post offices don’t need to be wildly profitable, but they also shouldn’t be run with impunity. Reading CUPW’s positions, they come across as disconnected from economic reality — yet, because of Canada Post’s monopoly, there’s no voter mechanism to correct course.