In 2001, Canada Post invested $1 million to acquire a 50 percent ownership stake in Intelcom, then operating as Intelcom Express, a package delivery company. The purchase quickly stirred controversy because of Intelcom’s connections to the Liberal Party of Canada, prompting critics to question whether the Crown corporation’s decision-making had been influenced by political favouritism. In response, Intelcom bought back its shares from Canada Post six years later, in 2007.

At the time, Intelcom was a major Liberal donor. Its founder and CEO, Daniel Hudon, was both a fundraiser and a former member of the finance committee of the Québec wing of the Liberal Party. The president of that wing was none other than Clément Joly, father of Jean-Sébastien and Mélanie Joly, the latter of whom now serves as minister of industry in the Carney government.

André Ouellet, the Canada Post CEO who authorized the Crown corporation’s purchase of Intelcom, was implicated in 2004 by a Deloitte Touche audit report, which was commissioned in the wake of the sponsorship scandal. The report criticized him for “repeatedly intervening in the awarding of contracts totalling $35 million” and for “asking his subordinates to find work for more than 80 people.” It also highlighted his extravagant spending, including $2 million on travel and hospitality over eight years. Facing mounting scrutiny, Ouellet resigned later that year.

Jean-Sébastien Joly, former CFO at Mediagrif, joined Intelcom in 2007 as vice president of finance and operations. In 2017, he bought the company from its founder, Mr. Hudon, with the participation of the Caisse de dépôt et de placement du Québec (CDPQ) and the Business Development Bank of Canada (BDC). Those same institutions had previously supported Intelcom’s rapid expansion following its 2015 partnership with Amazon, which began as a limited pilot program before scaling nationwide.

With the support of the CDPQ—known for its disregard for workers—Joly began a major expansion of the company’s operations. Since his purchase of Intelcom, the company has built sorting centres in Montréal and Toronto, representing investments of $31 million. During this period, the number of employees grew from 300 to 2,500, plus another 3,000 “independent” contractors—a euphemism for precarious gig workers.

These drivers are typically paid between $1.60 and $3 per package delivered, amounts that fall below minimum wage once fuel and maintenance costs are deducted. Intelcom provides no vehicle insurance or health coverage, leaving workers to shoulder all the risks of injury, wear, and burnout. Intelcom’s subsidiary, Dragonfly Shipping, has faced legal action over unsafe working conditions. In 2024, more than 100 non-unionized delivery drivers in British Columbia walked off the job to protest unsustainable hours.

During the December 2024 strike, Canada Post hired strikebreakers and used subcontractors to deliver packages that would otherwise have been handled by striking workers. At the time, Intelcom operated more than 60 delivery stations across Canada and handled roughly 500,000 parcels per day, underscoring the company’s central role in Canada’s privatized last-mile logistics sector.

Until 2022, Mélanie Joly was not subject to any conflict-of-interest measures that would have prevented her from giving preferential treatment to her brother’s company. Three years ago, however, a so-called conflict-of-interest “filter,” overseen by Joly’s deputy minister and chief of staff, was implemented to ensure the minister would not favour her brother’s company.

But this safeguard was merely cosmetic. By taking measures to dismantle the public postal system, Joly and the Carney government are directly supporting private companies like Intelcom at the expense of Canada Post.

The Liberal government’s relentless effort to diminish Canada Post has nothing to do with profitability. Their campaign has two objectives: first, to transfer parcel delivery services to private companies generating huge profits, and second, to weaken workers’ rights and solidarity. Achieving these goals means greater profits for corporate executives and lower wages and poorer working conditions for employees. Above all, it undermines workers’ capacity to resist.

Meanwhile, the government has ignored opportunities to expand Canada Post’s revenue in ways that would benefit the public rather than private entities. Proposals such as postal banking, last-mile delivery consolidation, community hubs, and rural charging stations remain sidelined, blocked by political inaction and resistance from powerful financial interests.

The Carney Liberals’ current agenda is to weaken unions, wages, and working conditions in order to further enrich corporations. The case of Intelcom is a prime example. Intelcom does not operate its own delivery vehicles; the company subcontracts this work to small and medium-sized businesses that provide delivery services. This structure makes unionization difficult because employees are bound by individual contracts. Instead of unionized workers with decent wages and conditions, the work is shifted to fragmented companies whose workers have no collective bargaining power.

The Liberal government and Canada Post management have fabricated a narrative of financial crisis to conceal their real objective. Adding to the scandal, Canada Post admitted during a parliamentary question-and-answer session that it had paid millions of dollars in bonuses to senior management over the past two years. If the company is supposedly losing money and heading toward bankruptcy, why are its executives receiving bonuses?

Canada Post owns 91 percent of Purolator, a major player in the domestic parcel market. Over the past four years, Purolator’s revenues have averaged approximately $2.5 billion, indicating that Canada Post is far from broke. If Canada Post held exclusive rights to parcel delivery—as it does for letters—it would easily break even.

After a union was formed, Amazon closed its seven facilities in Québec, laying off roughly 2,000 people. Before the closures, Intelcom had already expressed its eagerness to take over. “We have a long-standing relationship with Amazon and will continue to work closely with them to balance their delivery needs in Québec,” the company said in a statement. However, since Intelcom does not operate its own delivery vehicles, the laid-off employees will not be rehired, and their jobs will remain precarious under subcontracting arrangements.

According to the Canadian Union of Postal Workers (CUPW), virtually nothing has changed in the employer’s offers since last May. The latest proposals, however, include new rollbacks: the abolition of job security, a redeployment zone of 60 kilometres during reorganizations, and direct job cuts. Union President Jan Simpson condemned Canada Post’s decision to make members wait 45 days only to present offers worse than those rejected in August. Canada Post fully understood that its members could not accept these new offers and is clearly trying to buy time.

Union members have shown determination and mobilized across Canada. In Montréal, they broke new ground by organizing a joint demonstration with the Syndicat des employées d’entretien de la STCUM (CSN), who are also on strike. In the face of a coordinated offensive by employers and the federal government targeting all unions, building an inter-union response is a welcome initiative—one that should become standard practice.

All progressive, left-wing movements and organizations should follow suit. Defending Canada Post is not only about protecting good jobs; it’s about preserving one of the last nationwide infrastructures capable of countering corporate monopoly and serving people where they live.

André Frappier is a regular contributor to CD and a member of the magazine’s coordinating committee. He also serves on the editorial board of the online weekly Presse-toi à gauche and has been a member of the FTQ Montréal Labour Council for many years.