The Professional Institute of the Public Service of Canada
The Professional Institute of the Public Service of Canada
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This open letter from President O'Reilly was originally published in the National Newswatch last month.

As Canada navigates a 30 day delay on a potential trade war with retaliatory tariffs, we find ourselves in a position of stunning contradiction. After threatening to impose tariffs on $155 billion worth of American goods, we continue to send billions of Canadian tax dollars south through federal outsourcing contracts to the very nation challenging our economic sovereignty.

The scale of this contradiction is staggering. In the midst of developing emergency support programs for Canadian industries affected by these tariffs, we're simultaneously paying premium rates to American consulting giants for work that could be done by Canadian public servants. Major U.S. firms like IBM consistently rank among the top five recipients of government IT contracts. At the same time, McKinsey & Company has been awarded hundreds of million of contracts over the last two decades – 70% of which were never put to tender. Data from the Parliamentary Budget Officer shows these outsourced contracts typically cost Canadian taxpayers 25% more than if the same work were performed by public service professionals – a premium that becomes even more questionable as we brace for economic turbulence.

The timing of this trade dispute brings into sharp focus the critical role of public service expertise. As the Department of Finance opens its remissions process for businesses affected by the trade war, it will be public servants who design and implement these crucial support programs. Yet paradoxically, we continue to hollow out our internal capacity by outsourcing core government functions to foreign companies.

The pandemic response demonstrated the irreplaceable value of our public service. When crises struck, it was public service professionals who developed testing protocols, managed vaccine procurement, and created and delivered the CERB program that supported millions of Canadians. Now, as we face potential economic disruption from tariffs that could shrink GDP by up to 5.6% and increase unemployment by 3%, we need these same professionals to analyze impacts, design mitigation strategies, and protect Canadian interests.

Consider the current situation: while provincial governments moved to remove American products from liquor stores and modify procurement practices with U.S. companies, federal procurement continues to favor American consulting giants. This creates a dangerous dependency at precisely the moment when we need to maximize our economic sovereignty and response capability.

Most troubling is how this outsourcing steadily drains Canadian knowledge and expertise southward to American firms. When we outsource government functions, we don't just lose money – we lose vital expertise and institutional memory. Critical information about government operations, security protocols, and strategic planning flows south alongside Canadian tax dollars. This creates vulnerabilities that extend far beyond immediate financial costs, potentially hampering our ability to respond to future crises independently.

The Fall Economic Statement announced $1.3 billion for enhanced border security, recognizing the need for stronger Canadian capabilities. That border package was further bolstered this month to meet Trump's latest demands – delaying the tariffs. Yet we continue to undermine these investments by outsourcing critical IT and operational functions to foreign firms. This isn't just about software development or system maintenance – it's about maintaining control over the digital infrastructure that powers our government's ability to respond to crises.

Canada needs a fundamental shift in how we approach government procurement and capacity building. We must  repatriate essential government functions to our public service, particularly in areas critical to national security and economic sovereignty. This isn't about protectionism – it's about peace, order, and good government. A strong, professional public service isn't just an administrative necessity; it's a strategic asset in maintaining Canadian independence and resilience.

The current trade tensions offer an opportunity to reassess our procurement strategies and investment in public service capacity. As we prepare to weather economic headwinds, we must ensure we're not undermining ourselves from within. It's time to invest in our public service, build Canadian capability, and ensure our nation's foundation remains strong, regardless of what economic storms may come.

It defies logic to fight a trade war with one hand while writing cheques to American consultants with the other. Canada needs a public service that answers to Canadians, not US shareholders. In this moment of economic uncertainty, the latter isn't just preferable – it's essential for our national resilience.

Sean O'Reilly 

President

The Professional Institute of the Public Service of Canada (PIPSC) 

 

Published on 1 March 2025

Happy Labour Day weekend 2024!

Every victory in labour rights, from the weekend to workplace safety standards, came from workers standing together. Today, we stand on the shoulders of those who came before us, and we're fighting for the future of work.
Published on 30 August 2024

 

It is unfortunate that some organizations are choosing to boycott Capital Pride as a result of statements made by the organizers. This backlash and the subsequent fallout are a distraction from the intended purpose of the Pride event. PIPSC will continue to support and advocate for our employees and members who are part of the 2SLGBTQI+ communities. The Pride parade is a family-friendly activity to demonstrate that support. We encourage those who feel comfortable attending to do so and we won't be withdrawing from the parade.


Between the 1950s and 1990s, under the shadow of Cold War anxieties, the Canadian government undertook a systematic campaign against 2SLGBTQIA+ individuals within the federal public service and the Canadian Armed Forces. 

These individuals were unjustly targeted and stigmatized as security risks, not for any genuine threat they posed, but purely because of their sexual orientation. The rationale was dangerously flawed—rooted in the prejudiced belief that 2SLGBTQIA+ individuals, by virtue of their identity, had 'character weaknesses' making them susceptible to blackmail.

The effects were devastating: careers ruined, lives shattered, and dignity stripped away. Many were fired, demoted, or forced to resign in secrecy and silence, often without any access to sensitive information. 

This purge was not only a betrayal of trust but a clear violation of basic human rights, reflecting a dark period of intolerance and discrimination that was legally and socially sanctioned.

Today, we stand at a similar crossroads, witnessing a resurgence of hate and vitriol directed at the 2SLGBTQIA+ communities not just in Canada, but globally. Our members in these communities are subjected to violence, threats, and discrimination simply for being who they are.

The narrative that being part of the 2SLGBTQIA+ community makes one a lesser part of society is not just hurtful; it's dangerously regressive. It’s a narrative we've heard before, and it's one we cannot allow to take root again. The policies emerging across provinces that discriminate against 2SLGBTQIA+ individuals, coupled with the alarming rise in organized transphobia, echo the injustices of the past. 

As public service professionals, we have a duty to combat these regressive attitudes and policies. We must drown out the voices of hate with messages of strength and solidarity, standing firm in our commitment to a workplace and a society that values diversity and champions equity. We cannot stand idly by.

The past has shown us the cost of silence and complicity. Let us ensure that our actions today reflect our commitment to justice and equity for all. Our history, as shameful as parts of it are, provides us with the knowledge needed to prevent a repetition of those injustices. Let us learn from it, not relive it.

Published on 21 August 2024

McKinsey contracts: just the tip of the contracting-out iceberg

On January 30, 2023 PIPSC President Jennifer Carr, accompanied by Jordan McAuley, our specialist on outsourcing, testified before the House of Common Standing Committee on Government Operations and Estimates (OGGO) about the now-infamous McKinsey contracts awarded by the federal government.
Published on 7 February 2023

Op-ed — Return-to-office policy puts Canada's public servants at risk

Any return to office policy must “consider the nature of each department’s work and the services they provide to Canadians.” Those are Treasury Board President Mona Fortier’s own words, and we urge her to heed them, said presidents of PIPSC and CAPE in an opinion letter published in The Ottawa Citizen.
Published on 16 January 2023

Jenn’s New Year’s Message to Members

The New Year is here and I want to take this opportunity to sincerely wish you all the very best in 2023. Our challenges can definitely lead to positive outcomes for our members.
Published on 4 January 2023

Strong words for the Standing Committee on Government Operations about the government's reliance on outsourcing good jobs

On October 24, 2022 President Jennifer Carr appeared before the House of Commons Standing Committee on Government Operations and Estimates (OGGO) to discuss the nefarious effects of outsourcing on our members, public services and Canadian taxpayers.
Published on 2 November 2022