Public Services and Procurement Canada (PSPC) has faced setbacks in its efforts to sell or lease excess office space due to the government’s push for increased in-office workdays for public servants. A transition binder for Minister of Government Transformation, Public Works, and Procurement Joël Lightbound highlighted challenges in achieving the target of reducing half of the office portfolio by 2034.
The federal budget in April 2024 outlined plans to shrink the federal office footprint, projecting substantial savings of $3.9 billion over a decade, with further annual savings of $900 million. However, the government now anticipates disposing of only about one-third of its office space within the ten-year timeframe, resulting in approximately $2.45 billion in associated operations and maintenance savings.
Factors such as a rise in the number of employees requiring office space, new surplus asset transfer regulations, and updated guidelines mandating the minimum number of office days for public servants have impacted the original plan. Presently, federal employees must work in the office for at least three days a week, with executives required to be present four days weekly, compared to the previous two to three days before September 2024.
Michele LaRose, a PSPC spokesperson, stated that a preliminary analysis based on 290,000 full-time employees spending three days weekly in the office was later revised to accommodate 306,000 employees and the increased in-office presence requirement. LaRose emphasized the direct influence of hybrid work policies and public service growth on office space needs.
While PSPC acknowledges the ambitious target of halving federal office space, the department is exploring collaborative strategies to achieve this goal. Initiatives involve sharing office space among various federal entities, optimizing space allocation and funding models, and expediting the disposal of surplus assets.
Despite plans to downsize office space since 2019, a report by Auditor General Karen Hogan revealed slow progress in reducing office space, with some large departments hesitant to decrease their footprints. Hogan stressed the importance of accelerating efforts to create sustainable, accessible, and affordable housing by repurposing surplus properties.
Ontario Premier Doug Ford’s announcement requiring full-time office return for Ontario civil servants by January has not been mirrored by federal government or municipal bodies in Ontario. The City of Ottawa mandated its employees to return to the office five days a week in the upcoming year. Discussions on updating workplace presence policies within the federal government remain ongoing, with no immediate changes foreseen.