National Capital Region could suffer from planned public service cuts

An austerity budget is hanging over many federal public servants’ heads as the first round of job cuts is expected to begin next week.

On Wednesday, the Public Health Agency of Canada (PHAC) announced it’s cutting roughly 10 per cent of its workforce, which expanded during the COVID-19 pandemic.

Since the Ottawa-Gatineau area is home to so many federal government workers, there are a lot of questions about what that move — plus a separate, larger 15-per-cent cut across the federal government — might mean for the region.

“It would be a hit to our labour market. We could see a lot of talent flight as well,” said Mallory Clyne, director of advocacy and economic development at the Ottawa Board of Trade.

She believes there are still a lot of unknowns about what the cost-cutting measures could mean for the region.

“We want to know what the plan is to ensure these residents are reabsorbed into the labour market or can transfer into new roles, or that our city is going to have a diverse economy that involves many different employers and different sectors outside of just the public sector,” Clyne said.

Thousands of jobs potentially on the line

With just under 154,000 public servants living in the National Capital Region, Clyne said a conservative five- or six-per-cent cut could affect around 9,000 people.

That type of dramatic job loss could take its toll on home sales, property taxes and transit ridership, among other things, Clyne said.

She expects if thousands of jobs are cut over the coming years, only 50 per cent of employees could be reabsorbed into other roles and industries, whereas people in the remaining half might leave the region.

At the same time, it’s a “wait and see” scenario because some departments may find administrative cuts and efficiencies in program spending which could lower the overall numbers, Clyne added. 

Professional Institute of the Public Service of Canada president Sean O’Reilly says he’s worried about what the cuts to the Public Health Agency of Canada could mean if Canada faces another public health crisis like the COVID-19 pandemic. (Sean Kilpatrick/The Canadian Press)

Sean O’Reilly, president of the Professional Institute of Public Service Canada, was left reeling after hearing about the coming cuts and said PHAC “helped us get through the pandemic.”

“You’re cutting the public health agency. Who is supposed to be our front line of defence?” he said. 

“I look just south of the border and I look at all the cuts that have been made down there and how some of those services have been impacted.”

François-Philippe Champagne, the minister of National Revenue, says there are difficult decisions to be made when it comes to employee cuts. (Justin Tang/The Canadian Press)’Everyone here is stressed’

On Thursday, François-Philippe Champagne, the minister of National Revenue, said there are some “tough choices ahead.”

“But at the same time,” he added, “we’re going to be a paddock to make sure that we’re always there for Canadians.”

Champagne wants to cut operational spending by 7.5 per cent for the 2026-27 fiscal year, 10 per cent the following year and 15 per cent in 2028-29.

With the announcement about the impending cuts, people who work at PHAC in Ottawa said there were worries all around.

“Everybody kind of knew something was coming, but I think until you get there you still feel a little bit shocked,” Carli March, a public servant who recently passed the five-year mark with PHAC, told CBC.

Sebastien Cloutier has been with the agency for the last three years and said he, too, is concerned.  

“Everyone here is stressed,” he said.