Budget 2025 hints at pension cut for federal workers

PSAC is concerned the federal government may be preparing to claw back the hard-earned retirement benefits federal public service workers rely on.

Under the “Equitable Public Sector Retirement Benefits” section of the 2025 budget, the government suggests that federal public service workers are “overcontributing” to their federal pension plans and the Canada or Quebec Pension Plans (CPP/QPP). The government aims to correct the issue, promising this will save money both for the government and federal workers.

But this language hints that they plan to reduce pension plan benefits for workers to compensate for recent changes to CPP and QPP. Any proposal that reduces the value of members’ pensions – while framing it as a cost saving for workers – is unacceptable.

The federal government has already betrayed the trust of workers who contribute to the Public Service Pension Plan. Last year, the Liberal government raided $1.9 billion from pension plan, transferring the funds into the government’s own coffers. That decision directly undermined the retirement security of federal public service workers and set a dangerous precedent for treating the pension plan as a government piggy bank.

Combined with massive job cuts and sweeping changes to federal labour legislation included in this budget, the pension change is yet another red flag about how this government intends to treat its workers. PSAC will fight any attempt to undermine workers’ rights — including any move that threatens the financial security of our members in retirement.

Pensions are a core part of our members’ compensation – paid for and earned over a lifetime of service. Any change to pension benefits must be transparent, and should be brought to the unions at the bargaining table – not slipped into the budget as an accounting exercise.

Prime Minister Carney’s government still has an opportunity to show leadership by protecting and strengthening the pensions workers depend on – not weakening them.

PSAC is seeking immediate clarification from the federal government on the intent and impact of the pension language in Budget 2025. We will update members as soon as more information becomes available.

This article was first published on the PSAC website.

PSAC holds national lobby day to oppose austerity and protect public services

Public Service Alliance of Canada members from across Canada are meeting with parliamentarians in Ottawa today to urge them to reject austerity and protect vital public services and the workers who deliver them.

The federal government’s 2025 Budget will make life harder for people in Canada by cutting more than 40,000 federal public service jobs and impacting programs and services millions of people rely on.  Similar austerity measures in provinces and territories across the country are stretching public services to the breaking point.

“These cuts will mean fewer services for Canadians and more pressure on the workers who deliver them,” said Sharon DeSousa, PSAC National President. “Families will see delays in getting their old age security, childcare and veteran benefits, more frustration when reaching out to CRA, cutbacks to public health and food safety, and many other signs of a government stepping back at a time they need public services to step up.”

PSAC members are raising their concerns, proposing real solutions and demanding action on key priorities including public service cuts, labour rights, bargaining, and the Phoenix pay system.

“Public service cuts hurt our families, our communities, and our economy. You can’t build a better Canada without strong public services,” said DeSousa. “We’re ready to work with Prime Minister Carney’s government on real solutions to help everyone in Canada.”

This article was first published on the PSAC website.

Remembrance Day 2025

poppies flowers field landscape countryside

On November 11, we remember and honour the thousands of women and men who have laid down their lives for our country.

Remembrance Day presents us with an opportunity not only to recognize the dedication and sacrifices — past and present — of Canadians of all horizons, but also to reflect on how to build a better, fairer world where such sacrifices may no longer be necessary. To the women and men who have demonstrated courage and commitment in the face of adversity, we thank you.

In honour of all who have served, CIU will be half-masting the National Flag of Canada flying at the CIU National Office, in Ottawa.

CIU echoes PSAC-Quebec, condemns the Quebec government’s anti-union efforts

The Customs and Immigration Union joins PSAC-Quebec and the Fédération des travailleurs et travailleuses du Québec (FTQ) in condemning the Legault government’s Bill 3 (link in French), which aims to silence workers by weakening the foundations of the modern labour movement.

“It’s absolutely shameful,” said Yanniv Waknine, CIU’s third National Vice-President, responsible for the CIU Quebec region. “After muzzling Quebec doctors with Bill 2, François Legault and his government continue to reach new lows with Bill 3, which recalls last century’s union-busting attempts. By seeking to attack the Rand formula, the Quebec government is only confirming its inability to negotiate in good faith and, at the same time, its lack of integrity.”

CIU invites its members to visit the FTQ website to learn more about the unions’ response to the Legault government, such as the inter-union rally planned for November 29 (in French).

We are also resharing the reactions from PSAC-Quebec and the FTQ, below.

Reaction from PSAC-Quebec: Hands off union dues

“This attack on the labour movement is a smokescreen and serves neither our members nor the population as a whole,” said Sébastien Paquette, Executive Vice-President for PSAC-Quebec. “This is clearly a strategy to avoid talking about the real issues in the year leading up to the next election.”

Unions are duty-bound to negotiate collective agreements and ensure their members are fairly represented with an employer. Nothing prevents them from also taking political action on behalf of their members.

Article 1 of the Labour Code states that a union exists for “the study, safeguarding and development of the economic, social and educational interests of its members”. These goals can only be achieved through member communications and education, public awareness campaigns, political action with elected officials, and legal challenges.

Read more on the PSAC-Quebec website.

Reaction from the FTQ: “François Legault’s legacy: Division and chaos”

(translated from French)

“For months, this government has been looking for scapegoats in an attempt to make people forget its incompetence and failures and boost its poll numbers. Let the government, its ministers, and its members of parliament take note: the FTQ will never allow itself to be silenced,” said FTQ President Magali Picard.

“The people of Quebec, as well as the workers we represent, are not fooled. Bill 3 is a pretext to silence those who criticize François Legault’s government and the CAQ for their disastrous record,” added the president.

Read more on the FTQ website (in French).

Beyond CAQ ideology: the social contract built upon employer deduction of union dues

Before the 1940s, unions collected members’ dues by hand every month and could call a strike at any time.

Following a major strike in Ontario in the 1940s, Justice Ivan Rand ruled that employers would deduct and forward union dues monthly, free of charge. This ruling was called the Rand Formula. Everyone working in a unit would pay dues, regardless of whether they were union members. In exchange, Judge Rand ordered, unions would only be granted the right to strike after their collective agreement expired.

So began the social contract: while union fees were deducted by the employer, unions agreed not to strike while a collective agreement remained in effect.

To this day, the Rand Formula has been the cornerstone of all labour legislation in Canada.

Is the CAQ reneging on their Rand Formula obligations?

Source: https://afpcquebec.com/en/hands-off-union-dues/

Federal Budget: Government plans deep public service cuts and weakens workers’ bargaining rights

Ottawa, November 5, 2025 — The Public Service Alliance of Canada is deeply concerned about the federal government’s plan to slash critical public services, cut more than 40,000 federal public service workers, and undermine the collective bargaining rights of hundreds of thousands of workers.

Despite the needs of a growing and aging population, the government’s Budget 2025 will eliminate vital programs and services over the next three years while replacing workers with artificial intelligence through its Comprehensive Expenditure Review (CER).

“These deep public service cuts will hurt workers, families and communities across Canada,” said PSAC National President Sharon DeSousa. “People can expect longer wait times for passports, EI and child care benefits, more unanswered calls at Canada Revenue Agency, reduced public health and food safety efforts, and a government that isn’t there for ordinary people when they need it most.”

Instead of investing in frontline services and the workers who keep Canada running, the government is doubling down on job cuts and AI chatbots that will weaken Canada’s social safety net.

PSAC will do everything in its power to protect public services and the people who provide them by enforcing the provisions of our collective agreements and the rights enshrined in labour law.

“Prime Minister Carney talks a lot about how Canada will have to make sacrifices, but who is really making sacrifices in this budget?” asked DeSousa. “It’s not the mega corporations, the wealthy bankers or the CEOs – once again it’s working people in this country who will shoulder the burden.”

Changes to collective bargaining

We are also extremely concerned about the government’s decision to unilaterally change the labour laws that govern federal public service workers, and will be reviewing the legislation closely.

“These changes are yet another direct attack by this government on workers’ constitutionally protected collective bargaining rights,” said DeSousa. “Let me be clear: workers fought hard to secure these rights, and will fight tooth-and-nail to protect them.”

Equitable retirement for frontline workers

We welcome the commitment in the budget to provide public safety workers with equitable retirement benefits, allowing them to retire with dignity after 25 years of service, without penalty. This is long overdue.

This article was first published on the PSAC website.

‘We’re inundated with managers’: October winners

We’re pleased to announce the winners of the October round of our ‘We’re inundated with managers’ contest.

Congratulations to Tera Boettcher from Fort Frances, who won in the ‘absurdity of the employees/management ratio’ category with six (6!) managers for three employees.

And congratulations to a member from Victoria, who won in the ‘originality of the submission’ category. With a submission of 8 managers for 31 employees, they write: “Special shout out to our “CSI” unit in Victoria. Our “Corporate Strategy and Innovation” team that flips emails back and forth and runs out for a coffee every 45 minutes”.

We’ll be announcing the winners for the month of November early in December (previous submissions will also be considered, so no need to resubmit them).

Budget 2025: Initial reaction — A step closer to ‘25 and out’

With the tabling of the latest — and long-awaited — federal budget on November 4, 2025, the Canadian government proposes a number of measures directly related to border operations, all of which are likely to impact the work of our members.

While some of these initiatives are undoubtedly positive (such as improving the Canada Border Services Agency’s capacity to detect and intercept illicit goods, along with increasing the CBSA recruit stipend), others raise concerns, notably around language regarding preclearance as well as achieving ‘operating efficiencies’.

How these measures affect our members will depend on their implementation. The devil, as they say, is in the details, and we are hard at work to assess how this budget will impact Canada’s borders and the work our members do.

One thing is certain: The inclusion in the budget of ‘25 and out’ for public safety workers is, in and of itself, a monumental step forward for our union and our members. Together, we have fought tirelessly for years to see CBSA personnel have access to pension benefits in line with those provided by other law enforcement agencies, and this budget brings us closer than we’ve ever been to that goal.

With that in mind, here, too, questions remain, especially around eligibility. We are eager to work with the federal government to see the new ’25 and out’ pension provisions implemented as inclusively and expediently as possible following the adoption of the budget — we are committed to sharing any additional information as it becomes available.

CIU joins PSAC Prairies in denouncing the Alberta government’s attack on workers rights

In light of the United Conservative Party of Alberta’s unprecedented attack on workers and unions rights earlier this week, the Customs and Immigration Union expresses its full solidarity with the Alberta Federation of Labour and the Alberta Teachers’ Association.

By invoking the notwithstanding clause to send Alberta’s teachers back to work, the UCP is saying loud and clear that it will stop at nothing to strip hard-working people of their rights and protections” said Brea Baresinkoff, CIU 2nd National Vice-President, responsible for the CIU Prairies Region. “Other unions cannot sit idly by as the Alberta government signals to all provinces that it’s open season on workers rights, collective bargaining, and the democratic process.

CIU encourages all its members to visit the Alberta Federation of Labour’s website for more information on how to support the unions in their fight.

CIU also echoes the recent PSAC Prairies statement:

The Alberta government’s recent move to invoke the clause and steamroll the rights of teachers is not just wrong — it is undemocratic and sets a dangerous precedent in this province. We are urging our members and the public not to sit by as this government demonstrates it has no issue suspending the rights of Albertans. We strongly encourage you to join the Alberta Federation of Labour’s Ready to Resist campaign. Learn more and sign up for updates through the AFL website. Additionally, reach out to your local MLA and let them know this is unacceptable and as a constituent you do not support it. We are currently exploring all our available options to push back, including but not limited to, escalating direct actions and will be providing regular updates to members for ways to get involved.

‘Make no mistake, the use of the notwithstanding clause on teachers is the canary in the coal mine when it comes to the draconian and undemocratic moves of a government intent on trampling the democratic process and the rights of its citizens,’ said Marianne Hladun, Regional Executive Vice-President, Prairies.

On October 27, Bill 2, the Back to School Act, was tabled and rammed through the legislature. Any attempts to meaningfully debate the bill were blocked. Any chance for public input was denied. Instead the government used their majority to push it through, to achieve its own ends, at the expense of the citizens of Alberta.

‘This is no longer just a fight for public education, this is a fight against a government determined to silence Albertans and strip away their rights. How much more will we allow before we say enough?’ continued Hladun.

More information

To find out more on how unions in Alberta are responding to the provincial government’s attack on workers rights, see:

FB bargaining: Tell us how to improve your next contract

PSAC is preparing for our next round of bargaining on behalf of 9,000 PSAC-CIU members at the Canada Border Services Agency (CBSA) — and the first step is hearing from you.

What changes or improvements do you want to see in the next collective agreement? This is your chance to shape our priorities at the bargaining table. Member participation is critical to our strength and to winning better working conditions.

 Submit a proposal

 What makes a good bargaining proposal

You can submit proposals using the online form until December 5, 2025.

Proposals will be reviewed and brought to the next FB bargaining conference — March 24–26, 2026 in Ottawa — where delegates from branches across the country will prioritize them for negotiations.

The current collective agreement expires June 20, 2026.

Please ensure your personal contact information is up to date to receive news and updates as we begin work on your next collective agreement.

This article was first published on the PSAC website.

‘Extremely good news’: Government of Canada confirms ’25-and-out’ pension reform for frontline workers as part of 2025 budget

The Customs and Immigration Union (CIU) and the Public Service Alliance of Canada (PSAC) are glad to see the federal government confirm that the amendments to the Public Service Superannuation Act required to expand early retirement eligibility for frontline workers, including border personnel, will be included in the 2025 federal budget.

On October 17, 2025, Prime Minister Mark Carney announced a series of measures seeking to strengthen Canada’s borders, including amending the Public Service Superannuation Act, which will ensure that frontline federal workers can retire with dignity after 25 years of service, without penalty.

CIU and PSAC have long called for fair pension treatment for frontline workers, in line with benefits provided by other law enforcement and public safety agencies across the country.

This is extremely good news for our members,” said CIU National President Mark Weber. “Border officers work in demanding roles and face similar physical risks as other law enforcement officers. I am happy to see the federal government listening to unions and addressing this long-standing inequality.

“We’re glad the government is following through on their platform promise to provide equitable retirement for frontline workers in the budget,” said PSAC National President Sharon DeSousa. “This must be one of the first orders of business after the budget passes so these essential workers can retire with dignity — now, not years from now.”

At a time when border services are in dire need of more personnel, amending the Public Service Superannuation Act will certainly help public safety agencies such as the Canada Border Services Agency (CBSA) attract and retain much-needed new employees.

“Frontline workers like border services officers, search and rescue technicians, firefighters, correctional officers, and paramedics risk their lives every day to keep our communities safe,” said DeSousa. “After being forced to work longer than their peers for far too long, it’s time to finally deliver on this long-overdue promise and show that Canada truly values the people who protect it.”

New border measures: A step in the right direction

The October 17 announcement also re-confirmed the government’s commitment to hire 1,000 additional CBSA officers. “This is a strong start towards reinforcing our border infrastructure,” said the CIU National President. “CBSA needs to return to a model emphasizing direct interactions between border officers and people who seek entry to Canada” explained Mark Weber. “Adding 1,000 officers to the frontline must be a priority, and allowing these frontline officers to patrol between ports of entry is the next logical step.”

The government also announced its intention to raise the stipend for CBSA recruits attending the Agency’s college in Rigaud from $125 to $525 a week. This, too, is a good start. While the pre-2005 model — where recruits were paid a salary as officers — would allow the Agency to attract an even wider diversity of candidates, an increase to the stipend has long been needed.

CIU and PSAC hope these positive steps forward signal that the federal government is ready to continue to invest in the people who protect our frontline, and ensure Canada can meet new challenges head-on.