Federal Government Issues Layoff Notices to Thousands of Workers
In a significant development affecting the federal workforce, thousands of public servants have received layoff notices across Canada. The Public Service Alliance of Canada reported that 1,775 notices were given to its members last week alone. Since the release of the federal budget in November, a total of 2,273 notices have been issued.
Impacted Departments and Agencies
The layoff notices affect workers in various departments, including:
- Public Services and Procurement Canada
- Shared Services Canada
- Statistics Canada
- Treasury Board Secretariat
The Professional Institute of the Public Service of Canada also reported that 1,849 of its members received adjustment notices last week. PIPSC contends that the situation resembles a “Hunger Games-style fight for jobs” within the public service.
Government Spending and Workforce Adjustments
Concerns have escalated among union leaders regarding the juxtaposition of layoffs and significant spending on external consultations. PIPSC President Sean O’Reilly highlighted that despite layoffs, consultants continue to operate alongside laid-off employees. In the current federal budget, Canada allocated over $19 billion for external services, marking an increase of nearly $2 billion from the previous year.
The cuts are part of a broader plan to reduce program spending and administration costs by approximately $60 billion over the next five years. This comprehensive expenditure review will entail restructuring operations and consolidating internal services.
Projected Job Cuts and Voluntary Retirement Program
As part of these adjustments, the government aims to cut around 40,000 jobs from a peak of 368,000 in 2023-24. So far, about 10,000 positions have already been eliminated, with the plan including a reduction of 1,000 executive positions over the next two years.
The government has also initiated an early retirement program, targeting approximately 68,000 public servants for eligibility. This voluntary program allows workers to retire early without facing pension penalties. However, the specifics regarding which departments will be affected remains unclear, raising concerns among employees about job security.
Union Reactions and Employee Concerns
Sharon DeSousa, national president of the Public Service Alliance of Canada, expressed frustration over the lack of transparency in the layoff process. She noted that uncertainty about future cuts is impacting the mental health of public servants and creating anxiety for those dependent on government services.
Statistics Canada has already stated intentions to reduce its staff by 850, alongside cuts to its executive team. Other departments, such as Immigration and Climate Change, are also expected to share information regarding potential job cuts in the near future.
As the situation develops, unions are committed to advocating for their members, seeking to preserve as many jobs and services as possible amidst significant federal government layoffs.
