By Amanda Parriag, Principal, ParriagGroup & Susan Underhill, Principal, Connor Claire Group
When budgets tighten across the public sector, downsizing follows. These processes are governed by collective agreements, seniority rules, and structures designed for fairness and transparency. But following the letter of the rules alone does not guarantee equitable outcomes. It’s in the interpretation and application of those rules where equity, diversity, and inclusion (EDI) principles must be embedded to ensure the process doesn’t disproportionately harm equity-deserving groups.
Where collective agreements fall short
Collective agreements are designed to protect workers through mechanisms like seniority-based layoff provisions and recall rights. While these rules ensure predictability, they can inadvertently reproduce inequities. Seniority systems privilege employees who entered the public service earliest—historically more likely to be white, male, and without disabilities. Newer employees, often women, racialized workers, Indigenous Peoples, and persons with disabilities, remain more vulnerable to job loss despite progress in representation.
The 2023–24 Employment Equity Annual Report shows that representation of equity-deserving groups in the federal public service is increasing, but maintaining this progress requires attention during times of contraction. Without adjustments, collective agreement rules risk eroding the gains made in workforce diversity.
Similarly, program cuts guided solely by cost-saving targets can disproportionately reduce services relied on by marginalized communities. As a recent Canadian Human Rights Commission report on employment equity highlights, restructuring without explicit equity safeguards undermines both employee representation and the delivery of equitable public value.
Applying an EDI lens to restructuring and downsizing
Equity-informed restructuring doesn’t discard rules—it complements them to protect fairness in outcome. Leaders can employ several strategies:
Why it's critical to get this right
- Safeguard equity-critical programs: Protect services and roles that are disproportionately important to marginalized communities.
- Conduct equity impact assessments: Before implementing layoffs, modeling how outcomes differ across designated groups helps identify inequities early.
- Negotiate flexibility in seniority rules: Collective bargaining should allow exceptions where strictly following seniority would unduly disadvantage equity-deserving staff.
- Engage equity-deserving staff and bargaining agents in design: Consultation can surface blind spots and build trust during restructuring.
- Communicate openly: Share how EDI considerations shaped decisions—this transparency reinforces legitimacy and public confidence.
When downsizing is equity-informed, organizations preserve more than just budgets:
- Resilience - maintaining a diverse workforce sustains adaptability and innovative problem-solving.
- Credibility and trust - demonstrating fairness in outcomes reinforces trust in institutions
- Mission integrity - equity-oriented approaches ensure that communities relying on public services are not sidelined when cuts occur.
Partnering for equity and effectiveness
At Parriag Group and Connor Claire, we help leaders in public sector and non-profit contexts restructure in ways that uphold both equity and excellence. We co-design operating models, workforce strategics and policy frameworks that ensure downsizing doesn't compromise inclusion or organizational legitimacy.
Contact us: to explore how equity-informed restructuring can not only endure but strengthen your organization during lean times.
Amanda Parriag, Principal, ParriagGroup, Amanda@parriaggroup.com
Susan Underhill, Principal, Connor Claire Group, Susan.underhill@connorclaire.ca