Federal Budget: Government Plans Major Cuts and Restricts Workers’ Rights
Ottawa, November 5, 2025 — The Public Service Alliance of Canada (PSAC) has expressed serious concern over the federal government's decision to impose deep reductions in public services, remove more than 40,000 federal employees, and limit collective bargaining rights for hundreds of thousands of public service workers.
According to PSAC, the government’s Budget 2025 introduces a Comprehensive Expenditure Review (CER) that will replace many public service jobs with artificial intelligence, despite growing demands linked to Canada’s aging and expanding population. The organization warns that this approach undermines the stability and quality of essential services.
“These deep public service cuts will hurt workers, families and communities across Canada,” said PSAC National President Sharon DeSousa.
DeSousa emphasized that Canadians may soon experience longer delays for passports, employment insurance, and child care benefits. She also noted that reduced staffing could lead to weaker public health measures, decreased food safety oversight, and limited access to vital support from agencies such as the Canada Revenue Agency.
Rather than funding frontline operations and supporting the workforce that sustains national services, critics argue the government is prioritizing cost-cutting and AI automation, further eroding the country’s social safety net.
Author’s Summary
The 2025 budget shifts focus from people to automation, sparking alarms over job losses, weakened public services, and reduced worker rights across Canada.