top of page
Search

Equity in Lean Times: How to Downsize Without Deepening Inequities

  • Sep 11
  • 2 min read

ree

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:


  • 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.

  • Safeguard equity-critical programs: Protect services and roles that are disproportionately important to marginalized communities.

  • 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.


Why it's critical to get this right


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 public 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 Connor Claire and ParriagGroup, 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 strategies, 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


Susan Underhill

 
 
 

Comments

bottom of page