It's actually even worse for government (or crown corps like Canada Post), since they pay way below Canadian market rate, which is already way below U.S. salaries. The government then isn't really in competition for the best talent who want the most money.
Not only that, most gov projects have to outsource (that's why we have such big consulting firms like CGI and LGS). This make project costs skyrocket. All that because they can't offer good wages (or condition - working conditions are pretty much set in stone).
