The Canadian Union of Postal Workers (CUPW) has intensified its criticism of Canada Post, accusing the Crown corporation of steering business toward Purolator — its profitable courier subsidiary — as the nationwide postal strike continues.
Purolator, which is 91 per cent owned by Canada Post, has remained fully operational throughout the strike, offering discounts to small businesses and hiring gig workers to handle surging parcel volumes. CUPW claims that while postal workers have been fighting for fair wages and better working conditions, Canada Post has been “enticing small business customers with steep discounts” through Purolator. “Canada Post needs to bargain, not drive customers to its subsidiary,” the union wrote in a recent online post.
To draw attention to the issue, striking postal workers have picketed Purolator facilities and blocked delivery vehicles. Labour experts say Purolator’s growing role has been a simmering point of tension in negotiations. “Throughout the nearly two years of contentious negotiations between Canada Post and CUPW, the question of Purolator has been lurking in the background,” said Adam King, an assistant professor of labour studies at the University of Manitoba. “For several years, the subsidiary has been profitably handling packages that might otherwise be processed by Canada Post, raising questions about the relationship between the two entities.”
CUPW launched its third national strike in less than a year on Sept. 25, following the federal government’s plan to overhaul postal services to address financial losses. Proposed measures include closing some rural post offices and phasing out daily door-to-door delivery. CUPW opposes these changes and is also seeking wage and workplace improvements.
Purolator, meanwhile, has been thriving. While Canada Post reported a record $841 million loss before tax in 2024, Purolator posted $294 million in profits, with revenues rising by $300 million year-over-year. Canada Post President and CEO Doug Ettinger, who also sits on Purolator’s board, has denied that the corporation is intentionally diverting business to its subsidiary. “Customers are seeking certainty and making their own decisions — without any involvement or influence from Canada Post,” a spokesperson said, adding that CUPW’s accusations are “false” and that the union’s strike is what’s driving customers elsewhere.
Teamsters Canada, which represents many Purolator employees, issued a statement expressing solidarity with CUPW. The union said it respects CUPW picket lines and refuses to pick up or deliver parcels from Canada Post facilities, though it acknowledged that Purolator — like other couriers such as UPS and DHL — naturally sees more business during postal shutdowns. “A strong public postal service remains essential to Canadians,” Teamsters Canada said.
Purolator declined to comment on the specifics of the dispute, saying it is not a party to the labour negotiations. Labour law expert Gilles LeVasseur from the University of Ottawa noted that while Purolator is an affiliate, there is currently no evidence that Canada Post is deliberately poaching its own clients. “Are they actually taking regular clients of Canada Post to create new accounts for Purolator? That needs to be demonstrated,” he said.
The strike, coupled with Purolator’s rising profile, underscores the growing tensions between traditional postal operations and the increasingly competitive parcel delivery market — a divide that CUPW argues is being exploited to weaken its bargaining power.