OTTAWA, January 13, 2026 — Federal departments are issuing workforce reduction notices on a scale not seen in decades, raising serious concerns about the federal government’s ability to deliver public services Canadians rely on. The Professional Institute of the Public Service of Canada (PIPSC) warns that the loss of experienced public servants will have lasting consequences for service quality, capacity, and accountability.

“These are not abstract cuts on the government’s balance sheet - they are real jobs, real expertise and real services at risk," said PIPSC President Sean O’Reilly. "Once this capacity is gone, it cannot be quickly or cheaply replaced. It’s a dark time for the federal public service.”

Today’s impacted departments include Statistics Canada, a cornerstone of the public service that provides the trusted data Canadians rely on to understand the economy, the labour market, inflation, and housing. That data underpins evidence-based decision-making across government, business, and communities, shaping economic policy, guiding investment, and supporting effective service delivery to all Canadians.

PIPSC notes that reductions at Statistics Canada are part of a broader wave of public-sector cuts that have already affected multiple federal departments, with more reductions expected in the days and weeks ahead. Together, these cuts represent a significant contraction of public service capacity across government, raising concerns about the federal government’s ability to deliver core services and functions, respond effectively to economic uncertainty, and implement its own ambitious agenda.

“If the government wants sound analysis to help retool the Canadian economy, it needs the right data and analysts who know how to interpret it. That capacity doesn’t exist without Statistics Canada experts. That capacity was slashed today,” said O’Reilly. “Given the challenges Canada is facing, this is the wrong decision at the worst possible time.”

The union also warned that workforce reductions are part of a broader pattern that will damage productivity and drive early departures, leaving departments increasingly dependent on private consultants to fill gaps.

“This is not happening in isolation,” O’Reilly said. “Public servants are facing a triple hit at the same time. Significant job cuts, forced return-to-office rules, and a wave of early retirement incentives. That is not a plan. It is a pile-on.”

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For more information: Johanne Fillion, 613-883-4900 (mobile), jfillion@pipsc.ca

The government of Canada has announced that, effective January 1, 2026, pension benefits for retirees under the Public Service Pension Plan will be increased by 2.0%. This automatic increase, known as indexation, is designed to help protect your pension against the rising costs of living.

Over time, indexation ensures that your retirement income continues to meet your needs, helping maintain financial security and stability in retirement, even as prices for everyday goods and services rise.

The Public Service Pension Plan is an employer sponsored, defined benefits pension plan that covers most PIPSC members working in the Core Public Administration or at separate employers. 

For full details, including how the indexing is calculated and what it means for your pension, please visit the PSPP indexation page. Indexing rate – Retired members

The following op-ed by PIPSC President Sean O’Reilly was published in the Ottawa Citizen on Dec 18, 2025.

Six weeks after the federal government unveiled Budget 2025, its implications for the public service are becoming clearer and more troubling.

At the Professional Institute of the Public Service of Canada, we’ve heard from members  that fighting outsourcing remains a top priority.

During the spring election, the Liberals promised to reduce the government’s reliance on external consultants, but it’s obvious that the budget moves Canada in the opposite direction. What was pitched as a plan for discipline, modernization and efficiency is instead accelerating a decade-long shift toward outside consultants and away from in-house expertise.

Rather than strengthening the public service, the federal government has chosen once again to double down on outsourcing — the practice of hiring private consultants to do work the public service can and should be doing. This is a bad habit that’s been quietly draining billions of dollars from federal coffers for years, all while weakening the very systems Canadians rely on.

Budget 2025 even claims it will “cut back” on private consultants, but the government’s own numbers tell a different story. Outsourcing has doubled since pre-pandemic levels, and spending on professional services is projected to hit $26.1 billion this year — a 37 per cent increase from last year and a record high.

Even if the government somehow achieves its promised 20 cent reduction, outsourcing would still be roughly double what it was a decade ago. Private contractors cost taxpayers up to 26 per cent more than public servants.

It’s not even close. At best, it’s a premium price tag for duplication, delay and dependency. At worst, it weakens the very systems Canadians rely on, such as food safety, emergency response, digital security and environmental protection.

The budget makes matters worse by cutting around 30,000 public service jobs  in addition to about 10,000 that were lost last year. Replacing skilled, permanent staff with contractors isn’t efficiency — it’s erosion. Fewer public servants and more outsourcing will leave departments stretched thin, less resilient, and increasingly dependent on private-sector firms to perform core government functions.

We’ve seen this play out before. Phoenix was sold as a cost-saving reform and became one of the largest administrative failures in federal history. Billions were wasted.  ArriveCAN began as a modest digital contract and ballooned into a $60-million fiasco. Both were built by outside firms. Both continue to cost Canadians.

Contrast that with what happened when emergency struck during the COVID-19 pandemic: it was public servants — not consultants — who designed and delivered the Canada Emergency Response Benefit (CERB)  system in just six weeks. There were no million-dollar contracts, no glossy branding and no chaos. That’s what real efficiency looks like.

If the government wants to balance the books, it should reduce contractor waste before cutting scientists, analysts and inspectors. Build capacity before buying another quick fix. Canadians want a government that works for them — not one that looks “efficient” on paper while paying more to get less.

If we want real results, we need to look at who’s actually doing the work. It’s not consultants in corporate boardrooms; it’s the public servants in labs, offices, and control rooms who keep the country running.

Budget 2025 was a chance to rebuild public capacity and chart a smarter, self-reliant course. Instead, it repeats the mistakes of previous governments.

Outsourcing doesn’t make government leaner — it makes it weaker. You can’t cut your way to competence, and you can’t outsource efficiency.

Toronto, December 13, 2025 — The Professional Institute of the Public Service of Canada (PIPSC) concluded its national AGM today. This event marked President Sean O’Reilly’s first year in office, and charted a focused path forward as federal public services face deep cuts, accelerating outsourcing, and rapid technological change.

Over 800 delegates, stewards and board members from across the country gathered to assess the year’s progress and set priorities for the months ahead. O’Reilly highlighted that, over the past year, PIPSC has invested in steward training and digital modernization, thereby creating a stronger foundation for the challenges ahead.

“This AGM marks a turning point,” said PIPSC President Sean O’Reilly. “We’ve rebuilt our internal strength, we’ve shown governments that we are a serious, solutions-focused voice, and we’re ready for the difficult period ahead. Our members deliver the critical services Canadians rely on every day, and we will defend that work with clarity, determination and unity.”

A major theme of the AGM was the union’s response to the federal government’s newly signaled cuts to the public service. PIPSC emphasized the real risks these cuts pose to Canadians, from slower inspections to weaker emergency response to delays in scientific and regulatory work. These decisions are not just reducing headcount; they’re weakening the systems that keep this country functioning. At the same time, new return to office (RTO) mandates are adding instability and stress.

Delegates reflected on the national Lobby Week that saw members meet MPs across the country to raise concerns about cuts, outsourcing, and workforce adjustment (WFA) pressures.The AGM also showcased PIPSC’s leadership on federal science and artificial intelligence. The union’s recent Science Roadmap report revealed significant strain in labs and research programs across government, while PIPSC continued pushing for responsible, evidence-based AI adoption that supports rather than replaces professional expertise.

PIPSC celebrated important member-driven wins this year, including the successful CRPEG strike — the union’s first in more than 30 years — and membership growth in specialized groups, such as Crown Counsel in Newfoundland and Labrador.

As the AGM closed, PIPSC reaffirmed its commitment to strengthening public service capacity, protecting evidence-based decision-making and advocating for the resources professionals need to serve Canadians effectively.

PIPSC represents over 85,000 public-sector professionals across the country, most of them employed by the federal government. Follow us on Facebook, on X (formerly known as Twitter) and on Instagram.

Learn more about the accomplishments and continuous work of Canada’s largest union of professional employees in this year’s annual report.

Read the report

Ottawa, December 8, 2025 — Reacting to news today shared by Prime Minister Carney that a new return to office mandate is coming in the next few weeks, the Professional Institute of the Public Service of Canada (PIPSC) is calling on the federal government to ground any Return to Office (RTO) decisions in evidence, service outcomes, and operational reality.

“Canadians want results, not roll calls,” said PIPSC President Sean O’Reilly. “When the government makes policies about optics instead of outcomes, it risks slowing service delivery, draining talent, and making it harder to recruit the next generation of professionals.”

“We’ve been clear for years: RTO must be about 'presence with purpose,’” continued O’Reilly. “Where in-person work improves innovation, training, or service delivery, that’s great. But forcing people back just to be seen and to sit in on video calls from another location is not leadership. It’s theatre.”

As unions return to the bargaining table, the timing of the Prime Minister’s comments raises questions that underscore the need for evidence, transparency and collaboration.

“The government has consistently told unions that RTO was not being considered, and its most recent budget made no reference,” said O’Reilly. “We can all agree that no one wants a repeat of past RTO Directives, which were announced without consultation and caused widespread disruption, confusion, and unnecessary strain on labour-management relations.”

PIPSC wrote to the government as recently as last week to reiterate the union’s clear expectations.

“RTO is not a workforce strategy. You can’t modernize government with a 20th-century workplace model.”

PIPSC represents over 85,000 public sector professionals across the country, with the majority employed by the federal government.

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For more information or a copy of the letter PIPSC sent to TBS please contact : Brittany Smith (416) 841-4325, smithb@pipsc.ca.

By Sean O’Reilly, President of the Professional Institute of the Public Service of Canada (PIPSC) 

“The federal government’s decision to cut critical research programs and scientific positions at Natural Resources Canada (NRCan) poses serious and avoidable risks to safety and security across the country.

Canada’s geography, natural resources, and climate vulnerabilities demand world-class science. Yet almost entire teams responsible for keeping Canadians safe are being eliminated – the vast majority not through attrition, not voluntarily, but via layoffs.

These are highly dedicated public service professionals whose forecasting and analysis play a critical role in ensuring Canadians are not put in harm’s way. Eliminating them makes Canadians less safe.”

Here’s just a snapshot of what’s at stake:

• These cuts decimate capacity at the Canada Centre for Mapping and Earth Observation and Remote Sensing. This threatens our capacity to track wildfires, floods, landslides, and other geohazards, and to monitor the size and threats to freshwater resources. These scientists provide the data that emergency responders and governments depend on to protect communities from disaster and to support responsible resource development.
   
• The cuts also undermine our Arctic sovereignty. Accurate geoscience, mapping, and monitoring of Canada’s vast northern landmass are essential for asserting territorial rights, protecting northern infrastructure, and ensuring responsible resource activity. Reducing this capacity leaves Canada less able to defend its interests as other nations increase theirs.
   
• Canada has already lost almost its entire capacity to detect and fight deadly forest diseases. Thirty years ago, we had 16 forest pathologists. If these cuts proceed, we’ll have just four left, and only one left to monitor the entire forestry system east of the Rockies. We’ve already seen the cost of looking away: Dutch elm disease wiped out millions of elm trees across North America. The Emerald Ash Borer is wiping out ash trees now. Without pathologists monitoring forests, dangerous pests and diseases will spread unchecked.

“We want to be clear. These cuts are not abstract. They do not just trim budgets on a spreadsheet; they increase risk. They are positions and programs that directly support disaster prevention, scientific monitoring, resource development, environmental protection, and arctic sovereignty.

At a time when Canada is facing increased threats, significant economic challenges, and big promises over resource projects, these programs are critical, not optional.

We urge the federal government to reconsider these cuts immediately. Canada’s safety, security, and scientific leadership depend on it.”

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Time-sensitive information: Now more than ever, there are important issues members need to know about, such as Work Force Adjustment (WFA), Return to Office (RTO), and bargaining a new collective agreement. Using a personal email address for PIPSC communications ensures you continue to receive these updates.