Federal Budget: Government plans deep public service cuts and weakens workers’ bargaining rights

Federal Budget: Government Plans Deep Public Service Cuts

The Public Service Alliance of Canada (PSAC) expresses serious concern over the federal government's plan to significantly reduce essential public services, eliminate more than 40,000 federal public service jobs, and weaken collective bargaining rights for hundreds of thousands of workers.

Ottawa, November 5, 2025 — Despite a growing and aging population, Budget 2025 aims to cut vital programs and public services during the next three years. This will be accomplished by replacing many workers with artificial intelligence, as part of the government's Comprehensive Expenditure Review (CER).

“These deep public service cuts will hurt workers, families and communities across Canada,” said PSAC National President Sharon DeSousa.

DeSousa warned about longer delays for passports, employment insurance, and child care benefits, increased unanswered calls at the Canada Revenue Agency, reduced efforts in public health and food safety, and an overall government that fails to support ordinary Canadians when they need it the most.

Rather than strengthening frontline services and supporting public workers who keep the country functioning, the government is focusing on job reductions and deploying AI chatbots, which risks weakening Canada's social safety net.

Author’s summary: The latest federal budget proposes deep cuts to public services, significant job losses, and reduced workers' rights, endangering critical support systems for Canadians nationwide.

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Public Service Alliance of Canada Public Service Alliance of Canada — 2025-11-05

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