On this blog, we’ve consistently defended Canada’s small and medium-sized businesses, and for good reason: they carry much of the tax burden that funds Canada’s public services. After crunching the numbers on Canada Post’s Defined Benefit Pension Plan, one thing becomes obvious. While the Canadian Union of Postal Workers (CUPW) is technically correct that phasing out door-to-door delivery won’t save much money, they’ve ignored the real reason Canada Post is insolvent—its Defined Benefit Pension Plan.
What Does Canada Post’s Bankrupt Pension Plan Have to Do With Alberta?
Based on the data we’ve reviewed, the Canadian dollar is on track for significant debasement. Even if Pierre Poilievre wins the next election, he hasn’t campaigned on austerity. His platform is largely a return to the Stephen Harper era—a period that ironically helped pave the way for Justin Trudeau’s spending habits.
Harper, in an effort to appear “balanced,” filled Canada’s courts with left-leaning judges. Justin Trudeau then doubled down, shaping a justice system and regulatory environment that is increasingly hostile to fiscal restraint. As a result, Canada’s finances are deteriorating rapidly.
CUPW Negotiator Jim Gallant Says “Government Can’t Be Insolvent”
CUPW negotiator Jim Gallant recently compared Canada Post to the RCMP, implying that as a government entity it can’t go insolvent. His point is clear: no matter how bad the numbers get, Canada Post will be bailed out.
But this is precisely why Albertans should pay attention. Pensions—especially Defined Benefit pensions—are essentially legalized pyramid schemes. Unlike Defined Contribution plans, which live or die based on individual contributions and market returns, Defined Benefit plans rely on the employer (and, by extension, taxpayers) to make up any shortfall. When the employer is a Crown corporation like Canada Post, that liability becomes public.
According to the “Canada Post Pension Plan Report to Members 2024,” no employer contributions were made in 2024. Why? Because Canada Post had to borrow $1 billion from Ottawa just to cover operating costs. In the private sector, no bank would loan money to a company for operations under these conditions. But as Gallant argues, “Government can’t be insolvent.” Translation: perpetual bailouts funded by the private sector.
Why This Matters for Alberta
Alberta has Canada’s largest private sector and already finances much of the country through transfer payments. Without private-sector growth, Ottawa can only print money. And while printing money isn’t automatically inflationary, doing so to reward inefficiency is. Gallant’s comments signal to investors: no matter how disruptive or inefficient, Canada Post (and CUPW) will get paid. The private sector will foot the bill.
That’s a flashing red warning sign to capital. It signals: stop investing in Canada.
Learning from the United States: The Teamsters and UPS
The United States faced a similar scenario with the Teamsters’ pensions. The federal government stepped in with the Butch Lewis Act to provide special financial assistance to underfunded multiemployer plans—but only in exchange for restructuring. UPS was forced to move toward a Defined Contribution plan. Under the Multiemployer Pension Reform Act (MPRA), even promised benefits could be cut to prevent insolvency.
It’s likely Canada Post’s pension will also receive a bailout. But, as in the U.S., Ottawa may demand restructuring. CUPW may believe “Government can’t be insolvent,” but that doesn’t mean the Defined Benefit plan can continue unchanged.
A Christian Perspective on Stewardship
As Christians, we are called to be good stewards of God’s blessings. Financing inefficiency voluntarily is a form of idol worship. Jesus taught in His parables that we are accountable for what we’ve been given. When governments or unions operate without accountability—living “high off the hog” at others’ expense—they violate this principle.
History shows that regimes hostile to property rights (like Castro’s Cuba or modern China’s state-sanctioned Christianity) may achieve short-term gains but struggle to attract capital and innovation. Canada Post and CUPW increasingly display the same disregard for capital and property rights.
What Albertans Should Consider
Alberta should seriously consider:
- Establishing its own provincial pension plan (APP), denominated in U.S. dollars if necessary.
- Exiting federal pension schemes that act as pyramid structures funded by the private sector.
- Creating a provincial police force to reduce federal dependency and increase accountability.
Alberta has the youngest population in Canada. Continuing to finance failing pension schemes elsewhere is equivalent to burning capital. Without reform, the Canadian dollar will debase, and Canada will be seen internationally as a property-rights violator.
Conclusion:
The evidence is clear. CUPW’s position signals more debt, more bailouts, and a weaker dollar. Albertans, in particular, should prepare now. Consider making Jesus Christ your Lord and Savior today, because in uncertain times, only stewardship rooted in Him can safeguard our future.