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Sharon DeSousa, National President of the Public Service Alliance of Canada, November 5, 2025. CPAC screen shot

Unions voice opposition to federal workforce reduction plans

By Randy Thoms Nov 5, 2025 | 3:57 PM

The unions representing federal employees are speaking out against the Carney government’s proposal to reduce the workforce.

Up to 40-thousand positions could be eliminated by 2029.

Public Service Alliance of Canada National President Sharon DeSousa says the public will feel the impact.

“It means longer wait times for your passport, employment insurance, child care benefits and pensions. More unanswered calls at Canada Revenue Agency and weaker public health and food safety programs,” says DeSousa.

The government is anticipating that most of the reductions will be done through attrition and voluntary departures.

The federal budget proposes a voluntary Early Retirement Incentive program, allowing early retirement to employees aged 50 and up in certain categories.

It says eligible employees will be able to retire with an immediate pension with no penalty for early retirement.

The unions say they have experienced staffing cuts before.

DeSousa says in each case, the government was forced to hire employees back because services were impacted.

“Just look at the Canada Revenue Agency and the call wait times that have been experienced. In fact, just last year, 10,000 positions were cut, term positions, and guess what? They had to rehire in various departments, including Canada Revenue Agency, because they can’t sustain it,” says DeSousa.

The unions are also concerned with the Carney government’s plans to change federal labour laws and will be taking a closer look at what is proposed.

“And so without a doubt, you better believe PSAC, along with our members and our legal team, will be looking at that legislation very closely. We have a right to strike. This is a constitutional right, and I’m very concerned based on the government’s past actions when it comes to CUPW, Canada Post, as well as the Air Canada flight attendants. I’m very concerned about how they’ve been treating bargaining,” says DeSousa.

PSAC and the other union leader say they will do everything in their power to fight against the job cuts before they come.