Canada

Wages have to rise for the market economy with positive baseline inflation level to not collapse. You want others' wages to also go up, not public employees' wages to not go up. Someone else's wage going up creates negotiating leverage for the rest to demand higher wage too. Most wages have little to do with skill or job difficulty and a lot to do with specific market conditions and leverages that people or firms use to drive wages up or down. And while you talk about certain public employees getting raises, you don't consider the wage freezes for tens of thousands of nurses in Ontario that lasted many, many years and were only removed after a long legal fight. So things aren't always good in the public sector and in fact there are more than a few jobs that are better paid in the private sector.

Public corporations are no different than private corporations in that they take money from people and they pay people to do work. Sure they take more of their income from taxes than Loblaw or TD, but that's not fundamentally different than the subscriptions, commissions and prices you pay for things you generaly can't afford not to pay. Of course most large private corporations also get paid from taxes in some part. But that's not the interesting bit. People lower than the very top of the income scale spend most of their wages in their local economy. That's the income of most local busenesses and the wages of their neighbours. Money collected from the profit margin of Loblaw disappears from the local economy of the store and it gets distributed to few at the very top of the income scale who own Loblaw. It disappears from the local economy geographically and functionally. It is not available to fund any other local business and labour. Of course thats even worse with Walmart where the money doesn't even stay in Canada. With this framework in mind, even if the prices of a public grocer are the same as Loblaw, the revenue would be flowing through higher wages of employees into the local buisness owners and their employees. This is why the two are not the same and why you might want a well paying public grocer over a Loblaw's.

Finally, at least in Ontario, the public LCBO stores are some of the best run retail stores and they're a joy to be in. Interacting with their staff is typically great.