Federal public workers should learn details about possible layoffs, the offer of early retirement packages and other details about plans to find $60 billion in government savings “shortly,” according to the president of Canada’s largest public sector union. The Liberal government passed its federal budget by a vote of 170-168 in the House of Commons on Monday night. The budget includes cutting another 28,000 positions from the federal public service as part of a plan to find $60 billion in savings over the next five years. Public Service Alliance of Canada (PSAC) president Sharon DeSousa says the union has not received any new information about possible job cuts since the federal government tabled its budget on Nov. 4. “The budget just passed; we expect that our members will be notified by their managers shortly,” DeSousa told reporters. The union is holding a national lobby day on Parliament Hill on Tuesday, with the union saying its members will be meeting with parliamentarians to “urge them to reject austerity and protect vital public services.” The Canada Strong Budget 2025 outlines the plan to reduce the size of the federal public service by 40,000 jobs through job cuts, attrition, and early retirements, from its peak of 367,772 employees in March 2024, to 330,000 by 2028-29. There were 357,965 federal employees as of March 31, 2025. As part of the Comprehensive Expenditure Review, the government will reduce 16,000 full-time equivalent positions, including 650 executive positions, while another 12,000 positions, including 350 executive positions, will be eliminated through attrition and early retirement packages. “The risk of this budget are real. Thirty-thousand job cuts that will devastate services and hurt families and communities,” DeSousa said Tuesday morning. “We want to work with this government; we want to help build a Canada that strengthens our country and our economy. In return, we expect a government that treats workers fairly. We expect a government that understands public services are the backbone of the country and we expect a government that listens to the people delivering those programs.” The federal budget includes $1.5 billion over five years to cover early retirements. A voluntary Early Retirement Incentive program will be available for public servants aged 50 or above for Group 1 and age 55 and above for Group 2 who have at least 10 years of employment, with at least two years of pensionable service in the plan. DeSousa said it’s unclear how many federal public servants will accept an early retirement package. “Right now, it’s difficult to tell what the government’s incentives are. We haven’t been contacted,” DeSousa said. “I do want to say we have strong collective agreements that are members have fought for. So, for us, they need to follow the collective agreements and making sure our members’ rights are protected. So, any incentives, who will take them - I don’t know anyone who could retire as early as 50 if they’re able to do so. 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.” The size of the federal public service increased from 257,034 in 2015 to 367,772 in 2024, before the size of the federal public service dropped by 10,000 by March 2025. The Public Service Alliance of Canada represents 245,000 workers across Canada, including 165,000 federal workers.
