Union files grievance over federal government’s early retirement offers

A federal office building in Ottawa. (CTV News Ottawa)

A second federal union has filed a policy grievance over the federal government’s early retirement offer to thousands of public servants, saying employees are being pushed to “make irreversible career decisions without the full information or agreed safeguards.”

Thousands of federal public servants have until July 24 to apply for the Early Retirement Incentive (ERI) program, which will allow employees to retire with no financial penalties. The government began accepting applications for the program last Friday after the budget received Royal Assent.

The Professional Institute of the Public Service of Canada (PIPSC) announced Thursday it had filed a policy grievance over the Early Retirement Incentive program, saying the program “violates consultation obligations and undermines collective agreement protections.”

“PIPSC claims that rolling out ERI outside that framework creates confusion and uncertainty, and raises concerns that employees could be pressured into leaving without fully understanding the consequences.”

PIPSC is calling on the federal government to implement the Early Retirement Incentive program through the negotiated workforce adjustment agreement in the contract and to “fulfill its obligation to engage with bargaining agents under collective agreements.”

“We support early retirement as a way to avoid layoffs, but it must be implemented through the workforce adjustment framework set out in collective agreements,” PIPSC President Sean O’Reilly said in a statement.

“In this case, the federal government has bypassed that framework, acted unilaterally, ignored its consultation obligations, and put hard-won protections at risk. That’s a dangerous precedent.”

Last month, the Public Service Alliance of Canada (PSAC) filed a policy grievance over the early retirement packages, saying the program circumvents “key obligations under our collective agreements.”

“We’re calling on the employer to stop issuing ERI notices until it fully complies with workforce adjustment obligations and consult with the union before taking any further steps,” PSAC said on March 2.

O’Reilly says the Professional Institute of the Public Service of Canada has requested a meeting with government officials to “obtain full details of the program and its potential impacts.”

“Until there is full transparency and clear assurances that workers’ rights will be protected, this program should not move forward,” O’Reilly said. “We strongly urge members to speak with their union representative before making any decisions related to early retirement.”

In December, approximately 68,000 early-retirement notices were issued to federal public servants, saying they could be eligible for early retirement.

The Canada Strong Budget 2025, released in November, outlined a plan to cut the size of the federal public service by 28,000 positions by 2029, including 12,000 employees and 350 executive positions cut through attrition and early retirement packages.

A spokesperson for Treasury Board President Shafqat Ali told CTV News Ottawa that participation in the Early Retirement Incentive program is “entirely voluntary” for public servants.

“As proposed in Budget 2025, workforce reductions will be managed to the greatest extent possible through attrition and voluntary departures,” Mohammad Kamal said in a statement Thursday evening.

“The Early Retirement Incentive allows workforce reductions through voluntary departures by providing eligible employees the opportunity to retire early without penalty. Participation in the program is entirely voluntary and employees are encouraged to consider their individual circumstances and the options available to them.”

Kamal says the federal government does not comment “on matters related to ongoing grievances.”

The federal government says to be eligible for early retirement, you must meet the following parameters on the day you leave the public service.

Group 1: You joined the public service pension plan on or before December 31, 2012, and

• are at least 50 years old
• have at least two years of pensionable service
• have at least 10 years of employment in the public service

Group 2: You joined the public service pension plan on or after January 1, 2013, and

• are at least 55 years old
• have at least two years of pensionable service
• have at least 10 years of employment in the public service

“Under the Early Retirement Incentive program, eligible employees can apply to retire based on age and years of service with no reduction for early retirement,” the government’s website said. “The annual pension amount will be calculated using the total years of pensionable service up to the early retirement date.”

Federal public servants have until July 24 to apply for the Early Retirement Incentive program. If they are approved for early retirement, they must depart the public service by Jan. 20, 2027.

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