Federal Budget Cuts Threaten Public Services and Workers’ Rights
The Public Service Alliance of Canada (PSAC) has expressed serious concerns over the federal government's plan 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, PSAC highlighted that despite the demands of an expanding and aging population, Budget 2025 proposes to cut vital programs and services over the next three years. The government intends 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 the workforce that sustains the country, the government is prioritizing job cuts and AI chatbots, risking the weakening of Canada’s social safety net.
Key Concerns Raised by PSAC
- Elimination of critical public service programs despite increasing demand.
- Job cuts exceeding 40,000 federal public service positions.
- Reduced efficiency and accessibility in services like passports, employment insurance, and child care benefits.
- Decrease in public health and food safety efforts.
- Undermining of collective bargaining rights for a large number of workers.
- Increased reliance on artificial intelligence to replace human jobs.
Impact on Canadian Communities
The cuts are expected to lead to longer wait times and diminished government responsiveness, directly affecting families and vulnerable populations who depend on these services.
PSAC's Stance
PSAC urges the government to reconsider its approach, recommending investment in public service jobs and programs critical to national wellbeing rather than widespread cuts and automation.
“A sustainable social safety net requires skilled workers, not just technological replacements,” emphasized Sharon DeSousa.
Author’s summary: The federal budget’s substantial public service cuts and job eliminations threaten essential programs and workers’ rights, risking wider social harm across Canada.
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