CANADA'S UNIONS WARN AGAINST AUSTERITY

Statement by Bea Bruske, President of the Canadian Labour Congress

OTTAWA, ON, July 9, 2025 /CNW/ - Prime Minister Carney's instruction to cabinet to identify deep operational savings is a dangerous step in the wrong direction, one that puts critical public services and the workers who deliver them on the chopping block.

We've already seen nearly 10,000 federal jobs lost in the past year, with thousands of more workers in limbo. Now the government is considering cuts of up to 15% in some departments, risking the most significant downsizing of Canada's public service at a time when the Prime Minister is committing to significant new spending on defence and tax cuts for the rich.

Public services can always be improved, and the workers who deliver those important services know how to make them better. However, across-the-board cuts will only harm the services Canadians rely on and the workers who provide them. Past rounds of austerity have undermined public services and increased government spending on costly external contractors.

Canada's public service is one of the most efficient public service administrations in the world. Measured as a percentage of the population, the federal public service is smaller than it was in the 1980s, despite providing more services and serving a significantly older population.

At a time when Canadian workers are bracing for the economic impact of Trump's reckless trade war, the federal government should lean in, not pull back. Trump's attacks will have real impacts in communities across Canada, especially in manufacturing, steel, aluminum, and supply chain jobs. These workers and their families will need more support, not less. Slashing public services in the middle of an economic downturn will only make things worse. Adding thousands more to the growing ranks of the unemployed will further weaken our economy.

Canada's unions will not sit idly while workers and public services are put at risk. The intended cuts to government spending are the worst round of austerity we've seen since 1995, when Paul Martin's budget slashed transfers for health care, killed affordable housing programs, and gutted support systems Canadians depended on. If we're facing a housing crisis, healthcare strain and woefully inadequate EI today, we can trace those problems back to Paul Martin's austerity budget.

We urge Prime Minister Carney and his cabinet to change course, protect public services, and ensure that workers and communities come first.

SOURCE Canadian Labour Congress (CLC)

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