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Government extends contracts of 750 pay centre workers to manage job cuts
PSPC says the extra staff will help process pay issues, severance and exit packages as the federal workforce shrinks.
Public Services and Procurement Canada is extending contracts for about 750 to 800 term employees at the Pay Centre through December 2026 to manage a surge in job-cut workload.
Prime Minister Mark Carney's spending review seeks to shed about 30,000 public service jobs, prompting the government to invest $36 million in "surge capacity" at the Pay Centre to process exit packages.
As of April 22, the Pay Centre faced a backlog of 214,000 unresolved cases, including 88,000 complaints pending more than a year, underscoring the urgency of staffing extensions.
Nicole Allen, spokesperson for Public Services and Procurement Canada, said the department is focused on smoothing the process for those losing jobs or leaving voluntarily.
The federal government committed to cutting about 40,000 jobs from a 2023-24 peak of 368,000 across Canada, with thousands of public servants having applied for early departure incentives since late March.