Federal Budget: Government Plans Deep Public Service Cuts and Weakens Workers’ Bargaining Rights
The Public Service Alliance of Canada (PSAC) expresses serious concern over the federal government’s intention to drastically reduce essential public services, lay off more than 40,000 federal workers, and weaken the collective bargaining rights of hundreds of thousands of employees.
In Budget 2025, Ottawa plans to cut vital programs and services over the next three years despite the increasing demands of a growing and aging population. These cuts will be accompanied by the replacement of workers with artificial intelligence as part of the Comprehensive Expenditure Review (CER).
“These deep public service cuts will hurt workers, families and communities across Canada,” said PSAC National President Sharon DeSousa. “People can expect longer wait times for passports, EI and child care benefits, more unanswered calls at Canada Revenue Agency, reduced public health and food safety efforts, and a government that isn’t there for ordinary people when they need it most.”
Rather than supporting frontline services and the workers essential to Canada’s operation, the government is intensifying job cuts and expanding the use of AI chatbots, which risks weakening the country’s social safety net.
Key Concerns Highlighted
- Over 40,000 federal public service jobs targeted for cuts.
- Elimination of critical public programs in coming years.
- Reduced service quality at agencies like Canada Revenue Agency.
- Longer wait times for essential services including passports, Employment Insurance, and childcare benefits.
- Increased reliance on AI technologies replacing human workers.
- Weakened collective bargaining rights for a vast number of workers.
PSAC warns that these measures will severely impact Canadian families and communities by eroding the public services they rely on daily.
Author’s Summary
The federal budget’s deep cuts to public services and worker protections threaten to degrade essential programs and worsen access to support for millions of Canadians.