The Canada Revenue Agency (CRA) has told about 580 temporary workers, most of them debt collectors, that they’ll lose their jobs in about a month.
Details of the cuts come from two public sector unions, which say the cuts are happening across the country. About 15 of the jobs are in the Ottawa area.
CRA told Radio-Canada it’s prioritizing resources for tax filing, and reducing pandemic-era staffing levels. According to the Treasury Board, CRA’s workforce grew from 39,500 in 2016 to more than 59,000 as of March 31 this year.
Marc Brière, the national president of the Union of Taxation Employees, told Radio-Canada that debt collectors bring in much more than they cost, so cutting those positions doesn’t make sense.
Brière said CRA has told the union no more layoffs will come this year, and no permanent jobs will be affected in the foreseeable future.
Earlier this month, the Treasury Board updated public service unions about how it’s instructing departments to reduce spending to meet budget targets of $15 billion in savings over four years.
Finance Minister Chrystia Freeland projected in April’s budget that the federal government would post a $40-billion deficit this fiscal year.
The cost to finance Canada’s growing debt, which has more than doubled over the last nine years to $1.4 trillion, is eating up more and more taxpayer dollars as the government is forced to refinance its borrowing at higher rates.