As the federal government prepares to table a budget in the fall, the Union of Taxation Employees (UTE) has launched a campaign against the deep public service cuts announced by Mark Carney and his government.
Since May 2024, more than 3,000 tax workers in call centres have lost their jobs. These workers are often the people Canadians rely on to help with Employment Insurance (EI), tax returns, parental leave, business support, and more.
The UTE, a member of the Public Service Alliance of Canada (PSAC), said cuts to Canada Revenue Agency (CRA) funding will only worsen the workloads of call centre workers. Canadians using call centre services are already experiencing wait times up to 3.5 hours long. As well, fewer than five per cent of callers are able to reach an agent because there are not enough staff to take calls.
“Instead of investing in the services that people across the country depend on to help them during tough times, the federal government is cutting jobs and weakening critical services already under pressure,” the UTE wrote on their website.
At the beginning of August, US president Donald Trump raised tariffs on Canadian goods to 35 per cent. Canada’s trade deficit has risen to $19.6 billion as a result. As manufacturers export less, their need for labour could decrease and job losses could rise, putting further pressures on the services provided by UTE members.
Since the outset of the trade dispute with Canada’s southern neighbour, labour organizations have been calling for stronger EI measures to support workers who may find themselves out of a job as trade chaos reigns.
“People in Canada deserve high-quality services delivered by a strong, well-supported public service,” the UTE wrote. “The government needs to invest in call centre workers and public services to make this a reality.”
Workers at the CRA are not the only public servants facing cuts. In July, Finance Minister François-Philippe Champagne directed his fellow cabinet ministers to find ways to save on public service spending.
Champagne is aiming to cut operational spending by 7.5 per cent in 2026-27, 10 per cent in 2027-28 and 15 per cent in 2028-29.
PSAC was quick to criticize this call, saying a thinning of public service could lead to burnout for workers. Last year, the federal public service lost 10,000 jobs. A report by the Canadian Centre for Policy Alternatives estimates that the proposed savings projects could cost the public service as many as 50,000 jobs.
As the summer draws to a close, Canadians can look ahead to the fall budget for clarity on how the public service could be affected by cuts.
The UTE will also begin bargaining a new collective agreement in the fall. The union has arranged to meet with the employer several times between September and December 2025. The first meeting is set for September 11.
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