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Federal job cuts threaten public service capacity, union warns

by HR News Canada Staff
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Federal departments are issuing workforce reduction notices on a scale not seen in decades, according to the union representing more than 85,000 public sector professionals.

The Professional Institute of the Public Service of Canada said Tuesday the cuts risk long-term damage to service delivery and government capacity.

“These are not abstract cuts on the government’s balance sheet – they are real jobs, real expertise and real services at risk,” said Sean O’Reilly, PIPSC president. “Once this capacity is gone, it cannot be quickly or cheaply replaced. It’s a dark time for the federal public service.”

Statistics Canada among departments affected

Statistics Canada is among the departments issuing reduction notices. The agency provides economic data on the labour market, inflation and housing that supports policy decisions across government, business and communities.

O’Reilly said the cuts at Statistics Canada are particularly concerning given current economic uncertainty. “If the government wants sound analysis to help retool the Canadian economy, it needs the right data and analysts who know how to interpret it. That capacity doesn’t exist without StatCan experts. That capacity was completely slashed today,” he said.

The union said reductions at Statistics Canada are part of a broader wave of public sector cuts affecting multiple federal departments, with more expected in coming days and weeks.

Multiple pressures on workforce

PIPSC warned the workforce reductions are happening alongside other pressures on public servants, including return-to-office mandates and early retirement incentives.

“Public servants are facing a triple hit at the same time. Significant job cuts, forced return-to-office rules, and a wave of early retirement incentives. That is not a plan. It is a pile-on,” O’Reilly said.

The union said the combined effect will drive early departures and leave departments increasingly reliant on private consultants to fill gaps, according to O’Reilly.

PIPSC represents over 85,000 public sector professionals across Canada, most employed by the federal government.

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