Public service job cuts loom as Ottawa misses spending and deficit targets

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Public service job cuts loom as Ottawa misses spending and deficit targets
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The Hill Times

Canada’s ballooning public service has been bracing for spending and job cuts, and now unions are sounding the alarm that they are coming. With the federal deficit larger than anticipated, budget cuts and layoffs increasingly appear to be unavoidable. Departments are scrambling to meet their latest spending targets set by Treasury Board , with a deadline later this month.

immediately issued a press release raising the alarm. Sharon DeSousa, national president of , speaks at a Sept. 9 rally for remote work rights. photograph by Sam Garcia Unions leaders left the meeting incensed they weren’t consulted earlier. They had previously been told the effort to restrain spending announced in the last two budgets was supposed to be managed by attrition. “We heard a very different story,” said DeSousa.

is freezing term-employee rollovers, which automatically convert them to permanent status after working three years. This will affect 3,345 term workers at . These measures, along with reducing contractors, are routine steps departments take before considering layoffs for permanent employees. “Anyone who didn’t think cuts were coming is living in a fantasy,” said one senior bureaucrat. A history of missing targets Treasury Board officials argue these cuts should come as no surprise. They were announced in the 2023 budget and fall economic update, and the 2024 budget.

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