Federal Budget: Deep Public Service Cuts and Weakened Workers’ Rights
The Public Service Alliance of Canada (PSAC) has expressed strong concern over the federal government's Budget 2025, which proposes significant reductions to essential public services. The plan includes cutting more than 40,000 federal public service jobs and limiting collective bargaining rights for hundreds of thousands of workers.
Addressing Ottawa on November 5, 2025, PSAC highlighted that despite the demands of a growing and aging population, the government intends to eliminate crucial programs and replace workers with artificial intelligence through its Comprehensive Expenditure Review (CER) over the next three years.
"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."
Rather than investing in frontline services and supporting the workforce that sustains the country, the government is intensifying job cuts and deploying AI chatbots, which threatens to weaken Canada’s social safety net.
Key Concerns Raised by PSAC
- Elimination of vital programs affecting millions of Canadians.
- Over 40,000 public service job cuts projected.
- Undermining of workers’ collective bargaining rights.
- Increased reliance on artificial intelligence to replace human roles.
- Expected delays and reduced service quality in key areas such as passports, employment insurance, and child care benefits.
Impact on Canadian Communities
The proposed budget cuts will directly affect service delivery, creating longer wait times and reduced assistance for families and individuals in critical need. Public health measures and food safety initiatives are also anticipated to suffer significant setbacks.
Summary
The government's 2025 budget prioritizes cost-cutting through workforce reductions and AI integration, risking the quality and availability of essential public services for Canadians.
Author's summary: The 2025 federal budget threatens critical public services and workers’ rights by cutting over 40,000 jobs and replacing staff with AI, risking longer waits and weaker social support across Canada.