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Canada  + Office  | 

Some Federal Departments Won’t Meet RTO Deadline

Some federal departments will miss the government’s July 6 deadline requiring most public servants to work in the office at least four days a week because of ongoing office space shortages, The Globe and Mail reported.

The federal government confirmed to the Globe that Ottawa is maintaining the July 6 return-to-office deadline for non-executive employees, although deputy ministers will have flexibility to stagger implementation where workplace constraints exist. Executives have been required to work onsite five days per week since May 4.

Mohammad Kamal, a spokesperson for Treasury Board President Shafqat Ali, told the Globe that departments facing space limitations will be permitted to phase in the policy.

“In certain cases, deputy heads may stagger their implementation schedules to match their workplace realities, while aiming to maximize the on-site presence of employees beginning July 6,” Kamal told the Globe.

Large departments including Global Affairs, Immigration, Refugees and Citizenship Canada, and National Defence have acknowledged they will require additional time to fully comply because of limited office capacity and ongoing renovations, according to the Globe.

National Defence told the Globe that managers may approve exceptions on a case-by-case basis.

“The department is preparing for increased on-site presence and will do so in alignment with Treasury Board direction and operational requirements,” Pamela Hogan, a National Defence spokeswoman, told the Globe.

“National Defence has limited capacity in certain locations, including in the National Capital Region.”

Global Affairs said many non-executive employees will continue working onsite three days a week until renovations at its Ottawa headquarters and other locations are completed, while Immigration, Refugees and Citizenship Canada spokeswoman Julie Lafortune said a similar arrangement will remain in place “until we have sufficient office space,” the Globe reported.

Sean O’Reilly, president of the Professional Institute of the Public Service of Canada, told the Globe that many workplaces remain unprepared for the increased office attendance.

“People are still going to be hunting for desks, and it’s not productive,” he told his interviewer.

“You want to go to the office and get to work. You don’t want to go to office and figure out where the hell you’re sitting for the day.”

He warned that conditions would worsen after summer vacations.

“We’re going to see increased chaos,” he told the Globe.

O’Reilly also criticized the government’s workplace strategy.

“It feels like it’s a real estate strategy and not a workflow strategy,” he told the Globe.

“And what blows my mind the most is that the government’s trying to reduce the costs of the public service. This is only increasing costs.”

The return-to-office initiative coincides with the federal government’s effort to reduce the size of the public service through attrition, early retirement incentives and workforce adjustments. The core public administration and separate agencies employed 345,282 people as of March 31, down from 357,965 a year earlier, with the government targeting a workforce of about 330,000 by the 2028-29 fiscal year, the Globe reported, citing annual population data for the public service released this month.

In 2024, the federal government began to reduce its office portfolio as part of an effort to save $3.9 billion over 10 years. Public Services and Procurement Canada sought to sell and repurpose older office assets, particularly in Ottawa amid a hybrid-work movement.

But the Globe reported that the plan has since been revised and PSPC has been announcing plans to buy or lease new office space for public servants.

Pictured: Federally owned buildings in downtown Ottawa.

Photo:  Iryna Tolmachova/Shutterstock

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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