Ottawa, April 2, 2026 – Public service professionals are being pushed to make irreversible career decisions without the full information or agreed safeguards, as the government rolls out the Early Retirement Incentive (ERI) program outside the negotiated Workforce Adjustment (WFA) framework. In response, the Professional Institute of the Public Service of Canada (PIPSC) has filed a policy grievance stating that this approach violates consultation obligations and undermines collective agreement protections.
“We support early retirement as a way to avoid layoffs, but it must be implemented through the workforce adjustment framework set out in collective agreements,” said PIPSC President Sean O’Reilly. “In this case, the federal government has bypassed that framework, acted unilaterally, ignored its consultation obligations, and put hard-won protections at risk. That’s a dangerous precedent.”
Workforce Adjustment provisions exist to ensure job reductions are handled fairly, with clear rules, protections, and support for affected employees. PIPSC claims that rolling out ERI outside that framework creates confusion and uncertainty, and raises concerns that employees could be pressured into leaving without fully understanding the consequences.
“Workers are receiving WFA notices and being pushed to make life-changing decisions under an incredibly short timeline,” said O’Reilly. “That’s unacceptable.”
Adding to the concerns, the ERI program is being funded through pension surplus assets, raising serious concerns that workers are effectively financing the cost of workforce reductions themselves.
“Using pension assets to fund early retirement means workers are effectively financing their own layoff,” said Sean O’Reilly. “That’s completely inappropriate for a decision of this scale. It should be treated as an employer cost, not shifted onto employees.”
PIPSC is calling on the employer to implement the ERI through the negotiated WFA framework and to fulfill its obligation to engage with bargaining agents under collective agreements.
PIPSC has also requested a meeting with the employer to obtain full details of the program and its potential impacts.
“Until there is full transparency and clear assurances that workers’ rights will be protected, this program should not move forward,” said O’Reilly. “We strongly urge members to speak with their union representative before making any decisions related to early retirement.”
PIPSC represents over 85,000 public-sector professionals across the country, most of them employed by the federal government. Follow us on Facebook and on Instagram.
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For more information: Johanne Fillion, 613-883-4900 (mobile), jfillion@pipsc.ca
