Federal Budget: Government Plans Deep Public Service Cuts and Weakens Workers’ Bargaining Rights
The Public Service Alliance of Canada (PSAC) is alarmed by the federal government's proposal to drastically reduce essential public services, eliminate over 40,000 federal public service jobs, and weaken collective bargaining rights for hundreds of thousands of workers.
On November 5, 2025, Ottawa expressed concern that despite an aging and growing population, Budget 2025 will dismantle vital programs and services within three years. The government plans to replace many workers with artificial intelligence as part of 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 strengthening frontline services and supporting public workers who maintain Canada’s operations, the government opts to intensify job reductions and expand AI chatbots, thereby weakening the social safety net.
Key Concerns Raised by PSAC
- Cutting over 40,000 federal public service positions.
- Elimination of important programs affecting the public.
- Undermining collective bargaining rights of public workers.
- Longer delays and reduced quality in essential public services.
- Increased reliance on AI in place of human workers.
Author's summary: The 2025 federal budget proposes severe public service cuts and job losses, risking essential service quality and workers' rights amid rising demands.