Prime Minister Mark Carney campaigned on a promise of “caps, not cuts” to Canada’s federal public service in the last federal election. But the sweeping 15% budget cuts announced as part of a spending review this week look and feel like austerity and will hurt everyone in Canada who depends on vital public services.  

More than 10,000 federal public service jobs were lost last year alone — many of them PSAC members — with no plans to maintain the services those workers provided. Thousands more cuts have already been announced — including at the Canada Revenue Agency and Employment and Social Development Canada — and nearly 2,000 PSAC members have already been given notice their jobs are at risk through workforce adjustment.  

“Canada’s public service isn’t a piggy bank we can dip into whenever the government wants to fund new projects,” said Sharon DeSousa, PSAC National President. “We’ve always been open to working with the government to find savings, but we need a government that is truly willing to work with workers and unions — not around them.” 

“A strong and united Canada relies on Prime Minister Carney keeping his promise of caps, not cuts. Cutting jobs means cutting services. Full stop. It means longer wait times for passports, parental benefits and EI cheques, shuttered programs, and a government that can’t deliver for people in Canada.” 

What we know so far 

At a briefing this week, PSAC raised our concerns directly with the government. We pushed for transparency, accountability, and meaningful consultation. 

Here’s what we heard: 

• Departments must submit their spending plans by August 28, with no final decisions expected until then. 
• The proposed cuts will be phased in: 7.5% for the 2026–27 fiscal year, up to 2.5% in the second year, and up to 5% in 2028–29 for a total of 15% over three years. 
• These spending reductions are a continuation of the previous government’s Refocusing Government Spending initiative announced last November but halted when Parliament was prorogued. 

PSAC pushing for real solutions 

PSAC has always been ready to help the government find real savings — without gutting the services people rely on. Public service workers know where improvements can be made because we’re the ones doing the work every day. 

Instead of cutting jobs, the government could rein in costly consulting contracts and reverse the expensive and ineffective return-to-office mandate — changes that would save billions without sacrificing service delivery. These are the kinds of practical solutions we’ll be putting forward. 

“Prime Minister Carney has a choice: work alongside workers to strengthen public services and protect good jobs or continue down a path of deep cuts that will hurt workers, hollow out services, and break public trust,” said DeSousa.