Public Services and Procurement Canada (PSPC) has faced setbacks in its initiative to sell or lease surplus office space due to the government’s mandate for increased in-office workdays for public servants. A transition binder for Minister Joël Lightbound highlights challenges in achieving the target of reducing half of the office portfolio by 2034.
The federal budget in April 2024 outlined plans to decrease the federal office footprint, aiming for significant savings of $3.9 billion over the next decade and $900 million annually thereafter. However, the government now anticipates disposing of approximately one-third of its office space within the next ten years, yielding operational and maintenance savings of around $2.45 billion.
Factors affecting the original plan include the rise in employees requiring office space, revised rules on surplus asset transfers, and updated directives mandating the number of in-office days for public servants. Currently, federal employees must spend a minimum of three days a week in the office, with executives required to be present four days weekly.
Michele LaRose, a PSPC spokesperson, mentioned that the department’s analysis factored in 306,000 full-time employees working three days per week in response to the increased workplace presence requirement. LaRose emphasized the impact of hybrid work policies and public service growth on office space needs.
While the goal of reducing federal office space by 50% remains challenging, PSPC is exploring collaborative strategies across government to achieve this objective. Efforts include sharing office space among federal departments, optimizing space allocation and funding models, and expediting surplus asset disposals.
Despite plans to downsize office space dating back to 2019, a report by Auditor General Karen Hogan highlighted slow progress in office space reduction within the federal government. Resistance from larger departments to reduce their footprints poses a challenge, potentially leading to elevated maintenance costs for unsuitable properties. Hogan urged accelerated efforts to increase housing stock sustainably.
The briefing document stressed the importance of garnering support from across the public service to meet reduction targets. It noted that changes in government priorities could impact PSPC’s ability to achieve its objectives. Ontario Premier Doug Ford’s call for increased in-office work may influence federal and municipal decisions in the province.
The City of Ottawa announced a mandatory return to office work for its employees five days a week starting in the new year. However, there is no indication from the federal government or unions representing its workers regarding a similar move. The Treasury Board of Canada Secretariat confirmed that the directive on workplace presence remains unchanged, without disclosing ongoing policy discussions.
