Downsizing is on the horizon for federal public service
Posted Jan 10, 2012 11:12:47 AM.
This article is more than 5 years old.
Morale in the federal public sector is extremely low according to John Gordon, the head of the Public Service Alliance of Canada.
Last year, the Treasury Board announced that all departments were to find 5 percent in savings for each of the next two years to slay the federal deficit.
But Gordon tells 1310News that the discussions are closed and rumour mill is running rampant which is weighing on the minds of employees. Gordon is also hearing that those cuts could be even deeper than originally planned.
The spectre of job cuts raises the image of the largest public sector downsizing of 1997, which saw 80 thousand jobs eliminated.
Ian Lee at the Sprott School of Business tells 1310News that the cuts return spending to status quo of 2008 when the recession hit and the federal government launched it’s massive spending program to maintain the economy.
Lee also points out that Ottawa’s economy is larger and more diverse now than in 1997 and should be able to absorb the impact.
The final word on cuts will come in March in the federal budget.
