Five thousand public service jobs will be cut over the next four years, while underused federal office buildings, Canada Post properties and the National Defence Medical Centre in Ottawa could be turned into new housing units, as the federal government looks to find billions of dollars in savings and boost the country’s housing portfolio.
The federal government’s 2024 budget outlines several initiatives for “responsible government spending” and turning federal properties into homes in the national capital region and across the country.
The 416-page document also proposes new disconnect rules for workers in federally regulated sectors to limit “work-related communication” outside of scheduled work hours.
CTV News looks at the federal government’s plans for the public service and its office portfolio outlined in the budget.
The federal government is looking to eliminate 5,000 public service jobs through attrition over the next four years and requiring departments to cover increased costs within the budgets, as part of the “second phase of refocusing government spending,” which looks to save $4.2 billion over four years, starting in 2025-26, and $1.3 billion moving forward.
“Budget 2024 announces the government will seek to achieve savings primarily through natural attrition in the federal public service,” the document says.
The budget calls for the “public service population” to decline by approximately 5,000 full-time equivalent positions over the next four years, down from 368,000 public service positions as of March 31, 2024. There were 357,274 federal public service employees as of March 31, 2023, according to federal officials.
Federal officials describe the elimination of the positions as a “modest” cut to the public service. There was no specific numbers mentioned for job cuts in the national capital region.
As part of the spending plans, all federal departments and organizations will be required to cover a portion of their increased operating costs within their existing resources, starting April 1, 2025.
“This measure will not impact the delivery of benefits to Canadians and will be implemented in a way that continues to support regional representation and a diverse public service workforce,” the federal budget says. “Going forward, the government will continue to review spending across departments and on key initiatives to ensure the government operates effectively and efficiently for Canadians.”
The Canadian Centre for Policy Alternatives warns the job cuts may impact services.
“I think what’s new about this is there’s an impact on staffing,” David Macdonald, senior economic with the Canadian Centre for Policy Alternatives, said.
“Previously, the promise was no impact on service levels. That’s always the promise when you’re cutting government jobs – that no one will see the result. Now we’re seeing that, oh it will impact staff levels and may well impact service levels as a result.”
The 2023 budget and fall economic statement outlined plans to find $15.4 billion in public sector spending reductions by requiring departments and agencies to cut spending by three per cent, but there were no concrete plans on how to achieve it.
In the 2024 budget, the government says the first phase of its “refocusing government spending” identified areas of duplication, low value for money, or “lack of alignment with government priorities.”
The federal government is moving to give federal employees the “right to disconnect from work,” outside of their regular work hours.
The budget proposes spending $3.6 million over five years to amend the Canada Labour Code to require employers in federally regulated sectors to establish a right to disconnect policy, “limiting work-related communication outside of scheduled working hours.”
“Everyone needs some downtime; it is essential for well-being and mental health,” Budget 2024 says.
“As the nature of work in many industries has become increasingly digital, workers are finding it increasingly difficult to disconnect from their devices and inboxes after hours and on weekends.”
Up to 500,000 employees in federally regulated industries would fall under the new right to disconnect from work policy.
Public Service and Procurement Canada is being directed to reduce its office portfolio by 50 per cent, enabling federal office buildings to potentially be turned into homes in Ottawa and across Canada.
The budget provides $1.1 billion over 10 years, starting in 2024-25, for PSPC to convert underused federal offices into homes, with a focus on student and non-market housing.
“This funding will help accelerate the ending of leases and disposal of underused federal properties, and address deferred maintenance,” the budget says.
The government says reducing the federal office footprint will generate “substantial savings,” expected to reach $3.9 billion over the next 10 years.
PSPC has over six million sq. m. of office space, with an estimated 50 per cent of the space underused or vacant, according to the government.
In May 2023, the government announced it was disposing of 10 buildings in the national capital region through a sale or transfer. The buildings included the Jackson Building on Bank Street, the Sir Charles Tupper Building on Riverside Drive and L’Esplanade Laurier.
The National Defence Medical Centre in Ottawa could be converted into housing, as part of a plan to divest 14 surplus Department of National Defence Buildings.
The budget says DND will work with Canada Lands Company and other partners to divest the properties that have potential for housing. The properties include:
The National Defence Medical Centre on Alta Vista Drive in Ottawa was a former full-service hospital built to care for military personnel and their families. The hospital officially opened in 1961 and ceased operations in the early 1990s.
As part of the budget, the federal government will provide “additional investments” for the Department of National Defence to build and renovate housing for Canadian Armed Forces personnel on bases across Canada.
The plan would support building 1,400 new homes and renovating 2,500 existing units for members on military bases in Ottawa, Petawawa, Kingston, Borden, Trenton, Valcartier, Gagetown, Esquimalt and Edmonton.
Canada Post properties in Manotick and Rockland could be available for housing, as the federal government looks to reduce the office footprint of the crown corporation.
The budget says the government will take steps to enable Canada Post to prioritize leasing or divestment of post office properties and lands with “high potential for housing.”
Six Canada Post properties assessed for housing development are:
The budget also mentions 33 properties that could be unlocked for housing across Canada, including Canada Post buildings in Manotick and Rockland.
