A Relationship in Ruins: Canada Post vs. CUPW
If Canada Post could file for divorce, it likely would. Its ongoing battle with the Canadian Union of Postal Workers (CUPW) has become so toxic, it’s difficult to tell who’s in charge anymore. The union behaves as though it owns the corporation—blocking progress, resisting reform, and now accusing Canada Post of betrayal for simply trying to survive.
As a Crown corporation deep in the red, Canada Post is fighting for its very existence. Yet CUPW, a privately-owned union, continues to make demands as if revenues are irrelevant and accountability optional. The irony? CUPW’s increasingly erratic behavior could accelerate Canada Post’s demise.
CUPW’s Latest Outburst: Attacking Purolator
In an effort to remain operational during a nationwide strike, Canada Post has allowed its subsidiary, Purolator, to absorb some parcel delivery volume. CUPW, seeing this as an existential threat, is now publicly attacking Purolator—a company 91% owned by Canada Post but run independently.
CUPW’s logic? They claim that by allowing Purolator to continue functioning, Canada Post is “undermining the strike.” In reality, Canada Post is hemorrhaging cash and has no choice but to lean on its only profitable division.
Even more bizarrely, CUPW workers have begun picketing Purolator warehouses, blocking delivery trucks, and accusing Canada Post of intentionally driving customers to the courier. From the outside, it looks like desperation. From the inside, it looks like CUPW is actively sabotaging any chance at recovery.
Profit vs. Loss: A Tale of Two Business Models
While Canada Post continues to bleed hundreds of millions annually, Purolator has quietly become a model of efficiency. Profitable, fast-growing, and increasingly competitive, Purolator is attracting new small business clients with lower prices and faster delivery.
This isn’t some underhanded tactic—it’s simple economics. Canada Post is losing customers not because of conspiracy, but because CUPW’s disruptive strikes have driven them away. Purolator is simply there to catch the fallout.
Yet CUPW refuses to accept this. Rather than acknowledging the damage their labor actions are causing, they’re creating a narrative of betrayal—accusing management of poaching their own customers. The union has even pressured other unions, like the Teamsters, to symbolically “stand in solidarity,” despite the obvious contradictions.
Mark Carney’s Government Is Being Tested
This entire saga now puts Prime Minister Mark Carney and his cabinet in an awkward position. On one hand, they’re trying to project fiscal responsibility and modernize outdated institutions. On the other, they need union support to stay in power. Carney’s public image is that of a brilliant technocrat—but so far, his real-world negotiations have been underwhelming.
Carney was supposed to bring credibility to Ottawa. But if his government caves to CUPW in this fight, it will signal incompetence, political weakness, and a deep misunderstanding of economics. Worse, it would affirm CUPW’s belief that they—not the federal government—set the rules at Canada Post.
The Hard Truth: CUPW Has No Leverage
In the private sector, a union that behaves this way would be ignored—if not replaced entirely. Even within the public sector, CUPW is quickly running out of allies. Canada Post’s financial collapse is not theoretical; it’s happening in real time.
Despite this, CUPW continues to act like a spoiled child who believes consequences don’t apply. They expect to make demands without offering solutions, dictate business strategy without generating profits, and now, criticize Canada Post for relying on the only tool keeping parcels moving.
Closing Thoughts
Canada Post is on life support. If Mark Carney’s government fails to bring CUPW to heel, the message to the world will be clear: Canada is not serious about fixing its institutions.
That may seem like a small issue now—but in an era of global capital, digital competition, and mounting debt, it could be a costly mistake.
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