Thank you very much, Mr. Chair. It's a pleasure to be here today. It's nice to see many of you again for a second or third time.
My name is Cliff Groen. I'm the associate deputy minister of Employment and Social Development Canada, as well as the chief operating officer for Service Canada.
On behalf of ESDC, I appreciate the opportunity to appear before this committee today.
I would like to begin by acknowledging that the land on which we are gathered today is the traditional unceded territory of the Algonquin Anishinabe people.
I'm accompanied today by Danielle Lawlor, who is beside me. She's the director general of the financial management advisory services directorate within ESDC.
Our department strengthens Canada’s economic and social security and gives all Canadians a fair chance to succeed at every stage of their lives.
This means ESDC invests in programs like Canada-wide early learning and child care system and the national school food program.
ESDC also helps Canadians connect to good jobs and build the skills needed in a rapidly changing labour market. This includes supporting youth as they start their careers, advancing skilled trades and expanding opportunities for under-represented groups.
Our goal is to ensure Canadians are ready to seize the opportunities of the future.
And we continue to advance safe and fair workplaces by modernizing labour protections and fostering co-operative labour relations.
ESDC’s ongoing work also strengthens income security for aging Canadians, providing them with greater stability and peace of mind.
Furthermore, through Service Canada, we deliver programs and services directly to Canadians. This ensures they receive timely and accessible support whenever and wherever they need it.
Budget 2025 sets out a new direction for the public service by advancing the comprehensive expenditure review, or CER. Budget 2025 also reinforced the central role of the ESDC in supporting workers and families through economic disruptions and ongoing affordability challenges. With that direction in mind, our department will continue delivering high-quality services, including digital services and AI capabilities as priorities, and creating a more seamless Service Canada experience.
At the same time, we are committed to meeting the CER goals, which include reducing ESDC's funding by $780.5 million by 2028-29. Meeting this commitment does require workforce adjustments. ESDC is planning to reduce its workforce by 5,313 positions, plus 98 executive positions. It is important to note, however, that this includes 3,391 positions that were already reduced last fiscal year. The process related to the workforce adjustments is ongoing.
As part of these measures, 3,028 indeterminate employees received affected letters this past January, which is expected to result in the elimination of 931 positions, in addition to 39 executive positions. The remaining reductions will be achieved either through attrition or through the natural end of term positions. We expect final decisions to be made no later than this summer.
Regarding the future direction of ESDC, implementing these savings provides us with an opportunity to continue delivering high-quality services for Canadians while enhancing efficiency and sharpening our focus on the government's core priorities, such as spending less on operations to strengthen the economy and bringing down costs for Canadians.
ESDC is looking inward to ensure that organizational structures and resources are aligned with the program volumes and needs. This includes consolidating management and administrative support functions, reducing our reliance on external consultants, and limiting travel and conference attendance.
ESDC will also streamline program delivery through changes to the departmental grants and contributions programs, such as by merging Canada service corps and supports for student learning to lower administrative costs.
This will help us continue prioritizing spending on services to Canadians.
We look forward to working with this committee to advance our ambitious plans to deliver for Canadians and to strengthen our country's future.
I look forward to your questions. Thank you.