PSAC national president Chris Alyward reacting to the 2023 federal budget.
PSAC national president Chris Alyward and other labour leaders believe this year's budget doesn't support workers. Credit: PSAC / PSAC Credit: PSAC / PSAC

Two major public sector unions and the Canadian Labour Congress (CLC) warned that the federal budget announced on Tuesday, March 28 falls short of their expectations and threatens the viability of public services and jobs.

In particular, Chris Alyward, national president of the Public Service Alliance of Canada (PSAC) warned that he found the Liberal government’s promise to cut $15 billion in federal spending particularly concerning. Of the funding expected to be cut, $8.6 billion will be trimmed from federal departments, Crown Corporations and federal agencies. In addition, another $6.4 billion was cut by cancelling or delaying previously promised federal programs.

Alyward explained that the cuts would not only mean less services, but also will likely affect the livelihoods of those workers delivering those services.

“The last time we saw blanket reductions across the board, it meant major cuts to public services and the workers who deliver them,” said Aylward in a statement. “You can’t have it both ways. You can’t find $15 billion in cuts without slashing the vital services that Canadians depend on.”  

Federal budget only puts band-aids on affordability crisis

Several major social programs were announced or expanded in this year’s federal budget, including an expansion to the national Dental Care Program, as well as a new one-time “Grocery Rebate.”

The Dental Care Program, which originally only funded dental care for children, is being expanded to now include all uninsured adults who earn less than $90,000 a year.

While the CLC applauded this new measure, it said that more work still needs to be done to support Canada’s health care system and the health of Canadians.

“American-style, for-profit clinics drain resources from public systems, costing more and driving up wait times, with dire consequences,” said CLC President Bea Bruske in a statement. “Our healthcare system is being slammed by extreme staffing shortages. We need a fully funded workforce plan to retain care workers and recruit staff where they are needed, and direct investments to bolster public health care.”

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Bruske added that the so-called Grocery Rebate fails to tackle the main issue driving up food prices: corporate greed.

“The proposed grocery rebate will provide some relief, but it fails to tackle the root of the problem: corporations putting profits before people. While we welcome the introduction of a new 2% tax on share buybacks and a corporate beneficial ownership registry it doesn’t go far enough. Workers are tired of watching their budgets get stretched further while big business rakes in blockbuster profits,” said Bruske.

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No action on housing, pharmacare

The Canadian Union of Public Employees (CUPE) found what was not in the federal budget to be some of the most notable news.

“Measures like dental care and the GST rebate mean at least workers and families aren’t walking away empty-handed, but the Liberals could have done so much more,” said CUPE national secretary-treasurer Candace Rennick. “The budget was another missed opportunity to deliver on affordable housing, and long-awaited, long-promised services like pharmacare. It’s regrettable the government has once again failed to deliver on those promises.”

For Alyward in particular, he was disappointed that the federal budget did not address the fact that 165,000 PSAC members have been working without a contract for two years. PSAC is currently conducting a vote on whether or not to engage in a strike.

“Everyday costs have become unaffordable for Canadians, and workers are falling behind,” said Aylward. “As strike votes wrap up in the coming weeks, the real test will be whether this government is prepared to walk the talk by delivering a decent contract for workers that keeps up with the rising cost of living.”

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Nick Seebruch

Nick Seebruch has been the editor of rabble.ca since April 2022. He believes that fearless independent journalism is key for the survival of a healthy democracy. An OCNA award-winning journalist, for...