The Canadian Union of Public Employees (CUPE), the largest union in the country representing over 700,000 public sector workers, has officially thrown its support behind the New Democratic Party (NDP) — an unsurprising move given CUPE’s long-standing relationship with the party. However, this endorsement comes at a crucial time for NDP leader Jagmeet Singh, who is struggling to hold onto relevance in the face of rising support for both Mark Carney’s Liberals and Pierre Poilievre’s Conservatives.
But while the political drama unfolds, there’s a deeper economic reality Canadians need to understand:
Public sector workers don’t actually pay taxes in the way private sector workers do.
Here’s why: The money used to pay public sector salaries comes entirely from the private sector — either through taxation or borrowed funds from the Bank of Canada. Yes, government employees get taxed like everyone else (because the law requires it), but the funds they are taxed on come from the same public pool. In other words, it’s money cycled through the system, not newly created through value-added labor like in the private sector.
As an economic entity, the public sector does not generate its own income. Its tax contributions are symbolic at best — essentially a recycling of private-sector productivity or national debt. This is an uncomfortable truth that’s rarely discussed, but it’s critical to understanding the long-term sustainability of Canada’s economy.
CUPE’s Political Loyalty & the Current Landscape
CUPE’s latest move to back Singh and the NDP isn’t surprising — the union has long aligned itself with the NDP’s pro-labor agenda. But this endorsement comes as Singh fights to stay politically relevant.
The NDP has been losing ground to the Liberals, especially with Mark Carney’s rising influence and his appeal to centrist voters. At a recent campaign stop in Toronto, Singh lashed out at both Carney and Conservative leader Pierre Poilievre, claiming both are aligned with the interests of billionaires.
Singh took a shot at Carney’s past in private banking, accusing him of “making rich people richer on the backs of working-class people.” He also criticized Poilievre, who has been gaining traction with blue-collar voters and private-sector unions, saying:
“His plan is to cut services to you and your family — cut health care, cut child care, dental care.”
CUPE’s Celebration of Government Dependency
On its website, CUPE highlights several NDP policies that were implemented through its supply-and-confidence agreement with the Liberals, including:
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Dental care -
Pharmacare -
Disability benefits -
“Anti-scab” legislation
These are all publicly funded programs — in other words, paid for by the private sector, or borrowed against Canada’s future.
While these programs may benefit many Canadians in the short term, it’s important to recognize the economic dynamic: Public sector unions are advocating for increased government spending, funded by taxpayers who work in profit-driven businesses — the true engine of the economy.
Final Thoughts
The CUPE-NDP alliance isn’t just about labor rights — it’s about which sectors of society should carry the economic burden. CUPE members work in roles that are funded entirely by taxpayer dollars or national debt, yet wield significant political influence through lobbying and endorsements.
As Canada faces record inflation, rising interest rates, and a looming economic correction, the question Canadians must ask is simple:
How long can we sustain a growing public sector that doesn’t actually produce value — but consumes ever more tax revenue and demands more political influence?
In 2025, political endorsements like CUPE’s shouldn’t just be taken at face value. They should spark serious conversations about economic sustainability, fiscal responsibility, and the real source of wealth in this country.