Public Service Alliance of Canada National President Sharon DeSousa on the prospect of early retirement for federal civil servants: “Our members do not earn that type of money which will enable them to retire that early without having to seek other employment.”Adrian Wyld/The Canadian Press
Two weeks after the federal government announced budget plans to eliminate tens of thousands of public service jobs, union leaders say they are still in the dark about how the cuts will play out.
The Nov. 4 budget announced a plan to shrink the size of the public service by about 30,000 people over five years, in addition to a recent cut of about 10,000 jobs.
The job cuts are a key part of a broader plan to find nearly $60-billion in internal savings. But the budget document itself was light on details as to how these savings will be found.
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The budget did announce that $1.5-billion will be used to fund early retirement incentives over five years.
But Sharon DeSousa, national president of the Public Service Alliance of Canada, the largest federal public service union, said she’s concerned the buyout rules may pressure some public servants to retire before they are financially ready.
“I don’t know anyone who could retire as early as 50 … not in this economy. Not when you have children and you have elder support that you need to give. I just do not see a lot of people taking up on it,” she told reporters at a Tuesday news conference on Parliament Hill, where PSAC leaders took part in a lobby day to express their concerns to government officials and Members of Parliament.
“There’s this misunderstanding as to how big these pensions are. And all I can say to you is our members do not earn that type of money which will enable them to retire that early without having to seek other employment,” she said.
Unions warn federal budget proposal could lead to pension cuts for government workers
The budget said the Early Retirement Incentive program will be available in two forms: one for public servants who are age 50 or older, and a second option for public servants who are 55 or older.
As per the plan, implementation of the program would proceed by Jan. 15, 2026, or when the related changes to the Public Service Superannuation Act and Income Tax Regulations receive royal assent – which will likely be through an omnibus budget bill.
The government says the Early Retirement Incentive will be in place for one year.
The size of the core public service reached a peak of 367,772 employees in 2024 before falling to 357,965 this year, according to the Treasury Board.
The budget said the size will be further reduced to 330,000 by the 2028-29 fiscal year, which is about a 10 per cent reduction from the 2023-24 peak. That would still be above the 2015 level of 257,034 people, when the Liberals formed government.
Public service experts who spoke with The Globe and Mail had recommended the use of buyouts for older workers, saying it would ensure that the staffing reductions don’t disproportionately affect younger workers.
Collective bargaining agreements between unions and the government lay out a process called work force adjustments that apply when departments aim to cut jobs. The process can involve options like job swapping – known as alternation – as well as layoffs.
Striking Public Service Alliance of Canada workers walk a picket line around the front lawn of Parliament Hill in Ottawa in 2023.Adrian Wyld/The Canadian Press
The House of Commons approved a motion to adopt the budget in a 170-to-168 vote Monday evening. That will be followed by one or possibly two omnibus budget bills.
The Nov. 4 budget references 75 legislative changes to come, a higher number than those forecast in the past three budgets.
The Liberal government moved a motion Tuesday that is the initial step before introducing a budget bill. It was approved without a standing vote and the government then introduced C-15, a budget bill, in the afternoon.