The Union of Veterans Affairs Employees is a component of the Public Service Alliance of Canada. (Paul Chaisson/Canadian Press)

Job losses at Veterans Affairs Canada will run deep on P.E.I., according to the union representing its employees.

Yvan Thauvette, national president of the Union of Veterans Affairs Employees, said 232 positions will be cut in the province over the next three years.

In terms of the budget, the cuts to the department will be minimal in the first year, but grow to a total of $36.3 million by 2014/15. Veterans Affairs says that amounts to a 1.1% cut.

In total, about 1,400 people work at the VAC head office in Charlottetown, but that isn’t the only loss, Thauvette warned.

Another 550 jobs will be cut in the department because of a transformation process that is currently underway, he said.

When both the cuts and transformation are complete, Thauvette said VAC will be cut by 17.5 per cent.

“So that's front line staff people that will lose their job. And by sending part of their functions to the private sector worries us a lot because we feel it is only the beginning,” Thauvette said.

VAC employees were briefed this afternoon. It’s the only federal department with a headquarters outside of Ottawa.

The specific job cuts have not yet been determined.