After months of speculation about the scope and scale of cost savings and job cuts, Budget 2025 was released yesterday, offering at least some sense of what’s ahead for the federal public service.

We recognize that news of job cuts in the tens of thousands will undoubtedly be a source of anxiety and worry for many of you. Rest assured that ACFO-ACAF stands ready to support any members who are affected.

Our Workforce Adjustment (WFA) resources page will be updated as more information becomes available but it already contains useful information on the WFA process and options for affected members. It also has information on the ACFO-ACAF Alternation Network, to help connect affected individuals with those interested in leaving the public service. We encourage you to check it out so you have a better sense of what you or your colleagues might expect over the coming weeks and months.

While the budget is a comprehensive document it remains short on key details about individual programs or teams that might be affected. The Clerk of the Privy Council has committed to sharing details in a timely manner once and if the budget is approved by Parliament.

In the meantime, though, here is what we can tell you based on what was released yesterday.

The workforce will be changing

The budget lays out ambitious expenditure reduction targets over the next several years that will see the size of the federal workforce reduced by 10% by 2028-29 for a total of 40,000 positions being eliminated. The first round of these reductions has already begun through the Comprehensive Expenditure Review and is expected to see 16,000 positions eliminated this year.

It’s our belief that any job losses in the CT Community are likely to come about due to programs being eliminated or consolidated or due to efforts to “modernize operations” through the adoption of new technologies and the elimination of redundant processes.

Members who are affected by these cuts will have access to the full suite of WFA provisions and some may have access instead to a new, temporary early retirement incentive laid out in the budget. We have already reached out to the employer for more details on that early retirement option and will share those when they are available. 

However, we’re also working hard to remind the employer that finance and audit professionals play a vital role in accountability and proper stewardship of public funds. As the government undertakes a major overhaul of its internal operations, our community will play a critical role in carrying out that work. While back-office efficiency is a laudable goal, it can’t come at the cost of accountability and public confidence in our institutions.

It’s also worth noting, as we prepare for collective bargaining next year, that the budget does not follow a pattern of other governments in different jurisdictions facing similar financial pressures by imposing unconstitutional wage caps and freezes. While we expect the next round of bargaining to be a challenging one, we appreciate that we will be able to meet the employer at the table in good faith. More information on the upcoming bargaining round will be shared early next year.

The nature of your work will also be changing

The budget also points at ways in which the nature of the work done by the CT Community will be changing.

There are many references to Artificial Intelligence (AI) and other new technologies being used to drive efficiencies and reduce redundancies in operations. A dedicated Office of Digital Transformation is being set up to lead much of this work and Shared Services Canada has been tasked with developing a made-in-Canada AI application for use by government.

While we have known for some time that AI and other new technology would change the way our community works, the level of ambition and dependency on technology to deliver cost savings suggests adoption will happen faster and at a larger scale than some have anticipated. ACFO-ACAF will work to ensure technologies will be implemented strategically and without compromising the vital control and stewardship functions our community play.

The budget also calls for regular, predictable expenditure reviews in the future. This is something ACFO-ACAF has been recommending for years and we believe the CT Community is the best placed to lead such reviews. We are already working with key stakeholders on new training offerings to support this work and look forward to partnering with the government to deliver on this vital commitment.

Similarly, the budget reiterates and expands the government’s commitment to reducing red tape in operations, adopting a more nimble approach to reporting and decision making while balancing the need for risk management. This too is an area where we believe the CT Community must play a vital role. While streamlining low-risk processes and eliminating unnecessary reporting requirements is a welcome development, it’s important to remember that some controls and regulations exist for very important reasons. The expertise of our community will be vital in telling the difference between a redundant checkpoint and a vital control.

What ACFO-ACAF will do now

While we await details on key items in this budget, we’ve already begun advocating for our community in anticipation of what’s to come. While this budget will obviously lead to challenging times for many, there are also opportunities to put the CT Community at the centre of some necessary changes to how government operates.

For those who are affected, we will make sure your rights are respected, the WFA process is followed and you are given every opportunity to decide your own path forward – whether that be by alternating with another member or taking one of the incentives to leave on your own terms.

For those whose future remains in the public service, we will do what we can to ensure you have an opportunity to meaningfully contribute to the renewal of government operations. While the budget mentions reductions in training, the employer has an obligation to provide training on any new technologies that are introduced. Critically, the funding for the Joint Career Development Program is secured in our collective agreement, so you’ll continue to have access to those programs at no cost to you or your department as well.

The next few months will be full of both challenges and opportunities. ACFO-ACAF stands ready to support our community through it all.