Lou Laforet still can't believe the successful service he runs is being put out of business in Canada -- by a Crown corporation. 

"It's outrageous when you sit there and you look a customer in the eye that you have had for over twenty years and they tell you they can't continue to use your service anymore," said Laforet.

He heads up the Canadian operation of Spring Global Mail -- a joint venture between several international postal companies. It ships bulk mail exclusively to destinations outside of Canada -- more quickly and economically than Canada Post -- according to Laforet. 

International business mail is sent directly to foreign post offices, such as the U.S. Postal Service -- where it is then distributed, with postage, to its final destinations. Several large Canadian organizations, including the federal government, use Spring's services. 

"I mean it's not like we just started this up," said Laforet. "We've been doing this for 20 years. We've developed this over the years."

Even so, Canada Post has taken legal action to put Spring out of business.  The Crown corporation went to court -- arguing it has a legal monopoly over all Canadian mail.

The courts agreed. The Crown corporation is now trying to enforce that ruling -- seeking an injuction that would effectively close Spring's international mail operation in Canada -- and put 100 people out of work.

"It eats at you," said Laforet. "It takes a little bit of your heart to be quite honest with you."

Mark Madarang has worked for Spring for 10 years, and is upset at the prospect of suddenly being unemployed. 

"A lot of good people are going to lose their jobs and it's just not fair," said Madarang. "I have a nine month old and right now I'm bringing home the bacon. It will be hard, it will be tough."

Canada Post started going after Spring and others like it in 2002.  It based its legal argument on a few words in the Canada Post Act. In English, that law states Canada Post has "exclusive privilege" over mail "within Canada."  However, the French version of that same law makes no reference to geography. 

Canada Post used the French version to make its case.

"We tried to ask them to please stop -- that what they are doing is against the law," said Peter Melanson, Senior Vice President of Transaction Mail for Canada Post. "Ultimately we felt we had no other recourse (than to take legal action)."

Melanson insists Canada Post is not concerned about the competition -- rather, he said, the issue is what he calls illegal activity.

"It's not the fact that it is a significant portion of our business its more the fact that we believe what they are doing is against the law," said Melanson. "This is our business and we will defend the business because we have to service all of Canada."

Melanson is referring to Canada Post's obligation to distribute mail to all locations within Canada, no matter how remote and no matter what it costs. He said it needs the revenue derived from international mailing to make up the difference.

"It's going to result in thousands of jobs lost and its going to result in millions of dollars lost to the economy and I don't think they fully appreciate this," said Garth Whyte of the Canadian Federation of Independent Business (CFIB).

According to the CFIB, other small and medium sized businesses that do business with the international mail companies -- like envelope suppliers and direct marketers -- could also be driven out by a Canada Post monopoly.

"It's got everything to do with Canada Post wanting to increase its revenue and market share," said Whyte. "And they don't care what the casualties are. They don't care about who goes out of business or how many jobs are lost."

CTV asked for an interview with the federal minister responsible for Canada Post, Lawrence Cannon. His office responding by saying "The Minister does not comment on issues relating to Canada Post because it is a Crown Corporation with a full fledged board and they are financially accountable."

Garth Whyte believes the new government should be the held accountable, for the jobs and businesses lost.

"I would like the Conservative government to tell us whether this is their policy."

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