When Crown Corporations Forget Their Purpose

Two of Canada’s most visible Crown corporations, Canada Post and VIA Rail, seem to have lost their way. Both were created to knit together a vast and sparsely populated country, ensuring that every Canadian, no matter how remote, had access to essential services. Yet today, both have turned their gaze inward toward big-city markets, downgrading or abandoning the rural, northern, and remote communities they were meant to serve.

The problem is not simply poor management. It is a deeper contradiction in how we think about these federal institutions. Are they public services, funded and guaranteed by the government for the benefit of all? Or are they commercial enterprises expected to operate like businesses, focusing on profitability and efficiency?

Canada Post was once the backbone of national communication. Its universal service obligation was understood as a cornerstone of Canadian citizenship: every town and hamlet deserved a post office, and every address would receive mail. But with letter volumes collapsing and courier giants competing for parcels, Canada Post has shifted its focus to the most profitable markets. Rural post offices are shuttered or reduced to part-time counters in retail stores, and delivery standards in remote regions are steadily eroded.

VIA Rail’s story follows the same pattern. Founded in the late 1970s to preserve passenger trains when private railways abandoned them, it was meant to provide Canadians with a reliable and accessible alternative to highways and airlines. Instead, successive governments have treated VIA as a subsidy-dependent business rather than a national service. The Québec–Windsor corridor receives ever more investment, while iconic transcontinental and regional services limp along on political life support. Communities once promised rail access now watch the trains roll past them, or disappear entirely.

This retreat from universal service runs against the spirit of equality that Canadians expect from their public institutions. The Charter of Rights may not explicitly guarantee access to mail or transportation, but the principle of equal citizenship surely demands more than a market-driven approach that privileges Toronto and Montréal while ignoring Thompson or Whitehorse.

What’s going wrong is simple: Crown corporations are being managed as if they were private companies, not public trusts. Efficiency metrics and financial self-sufficiency dominate decision-making. National obligations are left vague, unenforced, or quietly abandoned. Governments praise the rhetoric of service while starving these corporations of the dedicated funding that would allow them to fulfill it.

Canada is not a compact, densely settled country where commercial logic alone can sustain public goods. It is a nation stitched together across vast geography by institutions that recognize service as a right, not a privilege. If we want Canada Post and VIA Rail to serve all Canadians, we need to stop pretending they can behave like for-profit businesses and still fulfill their mandates.

That choice is ultimately political. Parliament must decide: either redefine these corporations as genuine public services with modern mandates and stable funding, or admit that rural and northern Canadians will always be left behind.

Until then, our Crown corporations will continue to forget their purpose, and with it, a piece of the Canadian promise.

Canada Post’s Red Flag Fumble: Why “Clarifications” Can Backfire

Canada Post has a knack for finding itself in the headlines for all the wrong reasons. This week’s rural delivery flap (pun intended) has all the makings of another avoidable PR bruise. The issue? Mail carriers in rural areas have been told not to raise the red flag on mailboxes to signal incoming mail. According to Canada Post, the flag’s intended use has always been one-way: customers put it up to show there’s outgoing mail for pickup. The new instruction, they insist, is simply a “clarification” of longstanding policy, not a change in service.

For many rural residents, especially those with long driveways or mobility challenges, that little red flag has been a simple, effective communication tool for decades. It’s the rural equivalent of the notification icon on your phone – no need to trek through the snow or heat just to find an empty mailbox. Taking that away may align with corporate guidelines, but it’s a practical step backward in terms of customer experience.

Canada Post’s position is that the flag’s misuse by some carriers created inconsistency across the country. Some postal workers raised the flag for incoming mail, others didn’t, and now they’re enforcing a uniform standard. That sounds fine in a policy manual, but in real life, it translates into removing a service habit people value, without offering a replacement. And while this might be a small operational tweak from their perspective, it has outsized symbolic weight in the communities it affects.

The reaction has been swift and pointed. Rural customers, already feeling underserved compared to their urban counterparts, see this as yet another example of Ottawa making decisions without understanding life outside the city. The Canadian Union of Postal Workers says it wasn’t even consulted before the clarification went out. That’s not just a failure of courtesy; it’s a failure of internal communication that risks alienating frontline staff, the very people who are the public face of Canada Post.

For a federal agency that has spent years trying to modernize its image and service model, this is a curious hill to die on. Public trust in Canada Post has already been dented by service delays, price hikes, and reduced delivery frequency in some areas. Now, they’ve added a decision that feels to many, like a needless reduction in convenience. The optics are terrible: instead of talking about new rural service improvements, the conversation is about a flag on a box.

Good public relations isn’t just about press releases and branding campaigns. It’s about anticipating how policy changes, even small ones, will land with the people you serve. A true customer-first approach would have looked for alternatives: maybe a text notification service for rural deliveries, or an opt-in program where carriers could continue flag use. Instead, Canada Post has doubled down on the technical definition of a mailbox flag, while ignoring the human element of how that signal has been woven into daily routines.

The irony is that the red flag rule may be correct in theory, but in practice, it’s a perfect example of winning the policy argument while losing the public. For rural Canadians, this feels like one more example of an institution not listening. And for Canada Post, it’s another case of stepping on their own toes – this time, with both boots planted firmly in the gravel of a country driveway.

Sources: CP24Halifax CityNewsCJDC TV