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

Ottawa, November 5, 2025 — The Public Service Alliance of Canada is deeply concerned about the federal government’s plan to slash critical public services, cut more than 40,000 federal public service workers, and undermine the collective bargaining rights of hundreds of thousands of workers.  

Despite the needs of a growing and aging population, the government’s Budget 2025 will eliminate vital programs and services over the next three years while replacing workers with artificial intelligence through its Comprehensive Expenditure Review (CER). 

"These deep public service cuts will hurt workers, families and communities across Canada," said PSAC National President Sharon DeSousa. "People can expect longer wait times for passports, EI and child care benefits, more unanswered calls at Canada Revenue Agency, reduced public health and food safety efforts, and a government that isn’t there for ordinary people when they need it most.” 

Instead of investing in frontline services and the workers who keep Canada running, the government is doubling down on job cuts and AI chatbots that will weaken Canada’s social safety net.  

PSAC will do everything in its power to protect public services and the people who provide them by enforcing the provisions of our collective agreements and the rights enshrined in labour law. 

“Prime Minister Carney talks a lot about how Canada will have to make sacrifices, but who is really making sacrifices in this budget?” asked DeSousa. “It’s not the mega corporations, the wealthy bankers or the CEOs – once again it’s working people in this country who will shoulder the burden.”  

Changes to collective bargaining 

We are also extremely concerned about the government’s decision to unilaterally change the labour laws that govern federal public service workers, and will be reviewing the legislation closely.  

"These changes are yet another direct attack by this government on workers’ constitutionally protected collective bargaining rights,” said DeSousa. “Let me be clear: workers fought hard to secure these rights, and will fight tooth-and-nail to protect them.”  

Equitable retirement for frontline workers 

We welcome the commitment in the budget to provide public safety workers with equitable retirement benefits, allowing them to retire with dignity after 25 years of service, without penalty. This is long overdue.

November 4, 2025