Temporary workers among those who could lose jobs in Ottawa
The federal government’s multi-billion-dollar spending review could mean a number of federal workers lose their jobs, according to a report.
The review aims to slash $15.8 billion in savings by 2027-28 and $4.8 billion annually thereafter, according to the Ottawa Citizen.
Initially focused on reducing expenditures such as consulting and travel, the review now includes broader budget reduction measures – including layoffs.
As outlined in Budget 2024, the government plans to cut public service numbers by roughly 5,000 full-time positions over four years, primarily through natural attrition and hiring freezes.
Treasury Board President Anita Anand initially assured the Ottawa Citizen that these reductions would not involve layoffs, the publication said. However, in November, Treasury Board officials informed public sector unions that cuts to term and casual employees were imminent and permanent layoffs were “on the table.”
Plans for reductions are unlikely to be disclosed before March 2025, when the government tables its spending estimates in the House of Commons.
However, at the Canada Revenue Agency (CRA), an email signed by CRA Commissioner Bob Hamilton and Deputy Commissioner Jean-François Fortin detailed new hiring restrictions effective Nov. 7. These include halting promotions of temporary employees to permanent positions, freezing new term and student appointments for non-critical workloads, and reducing reliance on consultants.
About 600 temporary CRA employees will see their contracts terminated before Christmas, despite original end dates extending to March 2025, according to the Ottawa Citizen report.
Immigration, Refugees and Citizenship Canada (IRCC) also announced it would stop converting term employees to permanent positions as of Oct. 31, 2024. Similarly, Innovation, Science and Economic Development Canada confirmed measures that limit external hires and prevent temporary employees from becoming permanent. These changes will affect 356 workers within the department, according to the Ottawa Citizen.
The federal public service has expanded dramatically under the Liberal government, growing from 257,000 employees in 2015 to 368,000 as of March 31, 2024.
While the spending review applies broadly, some organizations are exempt. These include departments with annual budgets under $25 million, Crown corporations, and entities excluded for “public interest” reasons, such as Elections Canada, the Office of the Privacy Commissioner of Canada, and the Office of the Information Commissioner.
Previous reports noted that Tesla, McKinsey & Co. and Novartis also have plans to lay off workers in the near future.
