Public service unions warn of job cuts after Treasury Board meeting

Public service unions are warning of likely layoffs across the federal government after meeting with the Treasury Board to hear how departments are being told to cut costs.

The Treasury Board updated public service unions on Thursday about how it was instructing departments to reduce spending to meet budget targets of $15 billion in savings over the next four years. 

The government has previously said it would reduce the public service by 5,000 jobs through "natural attrition" as it transitions away from pandemic operations, when programming swelled to provide relief to Canadians. 

But after their meeting on Thursday, public service unions said it's now clear that people will lose their jobs.

We've seen this horror movie before — and it always ends badly for families across the country- Sharon DeSousa, PSAC

"The government is now widening the net, looking to cut term and casual employees, and opening the door for departments to slash permanent employees through workforce adjustment," the Public Service Alliance of Canada (PSAC) said in a statement, vowing to fight back against cuts. 

"We've seen this horror movie before — and it always ends badly for families across the country," said Sharon DeSousa, PSAC national president. "Make no mistake — everyday people always pay the price when public services are cut." 

Not renewing fixed term contracts are "job cuts, pure and simple," said Nathan Prier, president of the Canadian Association of Professional Employees

"And then they'll start turning to permanent staff," he told CBC.

'Difficult decisions' ahead

In a statement to CBC, a spokesperson for Treasury Board President Anita Anand reiterated that departments should aim to make savings through "natural attrition," without "compromising programs and services."

"Wherever possible, they must focus on finding these savings without layoffs," the spokesperson said, adding that this was not comparable to austerity measures introduced under the former government of Stephen Harper. 

But memos sent to staff at various departments indicate that layoffs may be possible. Canada Revenue Agency told its staff in a memo Thursday that "difficult decisions" would need to be made as it looked to cut costs as it transitions away from pandemic operations.

The agency said it was introducing restrictions on hiring and non-critical overtime, and said "additional measures may be required … as this is an evolving situation."

Likewise on Wednesday, the Justice Department sent its staff a memo announcing cuts to its salary budget. 

"Our objective is to achieve savings through natural attrition to the greatest extent possible to minimize the impact on employees," it said, without ruling out redundancies. 

'It's a lose-lose situation'

The government's assurance that cuts will not affect services to Canadians was "unconvincing," according to the Professional Institute of the Public Service of Canada.

In particular, PIPSC is concerned that reducing temporary, casual, fixed-term and student positions would prevent young people from entering the public service.

"These cuts threaten to create a 'forgotten generation' in the public service at a time when there is a greater need for new talent and new perspectives than ever before," PIPSC president Jennifer Carr said in a statement. 

Marc Brière, the national president of the Union of Taxation Employees, warned that cuts would negatively impact services.

"The population will suffer and the employees too," he said. "It's a lose-lose situation."