The Canada Revenue Agency (CRA) is expecting to cut approximately 600 temporary positions, primarily impacting its debt collection teams. This decision is part of broader cost-saving measures amid scrutiny over government spending, as outlined by the federal government.
According to reports, CRA representatives have communicated to various media outlets, including the CBC, about prioritizing resources for tax filing and scaling back on pandemic-era staffing practices. This announcement follows directives from the Treasury Board, which requested all departments to find ways to achieve $15 billion in savings over the next four years.
At the end of March, the CRA had around 59,000 employees, and around 12,000 of those were mental health workers on temporary contracts. The layoffs are scheduled to take place with some contracts ending as soon as November 29, with others following on December 13. Many of these workers were expected to be employed until March 2025.
Marc Brière, the national president of the Union of Taxation Employees (UTE), expressed strong discontent over these layoffs, emphasizing the disconnect between the staffing cuts and the continuing need for collection services. He highlighted the financial contributions of these workers, who reportedly generate between $1 million and $5 million annually for the agency. "A lot of people broke out crying on the premises yesterday, there were a lot of people who were distressed and they were shocked to find out,” Brière stated, underscoring the emotional toll this announcement has taken on employees.
Brière noted the important roles played by the debt collectors being laid off, asking rhetorically: “I don’t understand why the CRA is targeting collections and audit when it’s your bread and butter.” He noted some auditors would also be laid off but reassured the workforce about the stability of permanent positions within the CRA for the time being.
This move by the CRA is part of a larger trend of layoffs affecting numerous industries across Canada. Big names like AMD, Boeing, Visa, and IBM are among other companies facing similar cuts due to economic pressures. This has led to heightened worries among workers about job security across multiple sectors.
The CRA's approach to these layoffs has raised questions among employees about their rights. For non-unionized workers, it is important to understand the rights to severance pay when job losses occur. Generally, employees released due to downsizing or restructures are entitled to full severance pay.
Temporary employees, like those being laid off, may qualify for severance depending on the circumstances surrounding their employment. The CRA emphasized this point, stating they do not take these decisions lightly and are working to manage operations efficiently within their allocated budget.
“It is important to continue managing how we operate within our budgets, including making difficult decisions about contracts and positions,” said Nina Ioussoupova, another CRA spokesperson. She acknowledged the stress such announcements create, especially approaching the holiday season.
Earlier this year, the CRA had already made moves to reduce staffing when they announced the ending of contracts for 2,000 call centre employees, indicating this is not the first time the agency has trimmed its workforce this year.
Reports suggest anxiety among employees remains high, particularly with worries about the possibility of future cuts beyond those already announced. Despite reassurances about the status of permanent roles within the CRA, Brière noted employees are understandably nervous about their job security once more layoffs become inevitable.
Workers still have options, though. The UTE has made efforts to consult affected workers about their rights following the layoffs. Visitors to their website can find details on severance pay entitlements as well as resources for those needing legal assistance. This sort of outreach becomes extremely valuable to those left uncertain about their immediate future.
With 2024 approaching and the effects of economic shifts still playing out, many are left wondering how this situation will evolve. The upcoming weeks will likely bring additional developments for the CRA and its employees as they navigate this challenging time.
While permanent staff at the CRA are assured no immediate job losses, the situation still casts concern over employment trends across the public sector and beyond. The gradual shift to tighter budgets has employees reflecting on the stability of their roles and the necessity for financial efficiencies within the jobs they perform.
