Question Period Note: PAY – PHOENIX – DAMAGES

In June 2019, the Government of Canada announced that it finalized a joint agreement with bargaining agents, with the exception of the Public Service Alliance of Canada (PSAC), to compensate current and former employees who may have been impacted by the Phoenix pay system.

• Canada’s public servants deserve to be paid properly for their important work and the Government of Canada continues to take action on all fronts to resolve pay issues.
• The Government of Canada recognizes the fact that employees have been impacted, either directly or indirectly, by the implementation of the Phoenix pay system.
• We have reached an agreement with most bargaining agents to compensate current and former employees of the core public administration for damages caused by the Phoenix pay system.
• Implementing the terms of the damages agreement co-developed with federal public service unions in June 2019 remains a priority.

In June, 2019, the Government of Canada ratified a joint agreement with members of the joint Union-Management sub-committee on damages for compensation for employees impacted by the implementation of the Phoenix Pay system. A number of separate agencies have since signed a similar agreement.
PSAC, who represents 140,000 employees, has rejected the agreement, stating the compensation is insufficient.
The agreement includes up to five days of additional annual leave for employees and a cash pay-out equivalent to this leave for former employees or the estates of deceased employees
Additional compensation, evaluated on a case-by-case basis, will be provided for those who missed opportunities to earn interest on savings accounts or other investments; experienced delays in receiving severance or pension payments; and/or experienced severe personal or financial hardship due to Phoenix pay issues.
Over the summer, federal organizations credited eligible employees with additional vacation days for damages caused by Phoenix. This leave represents general compensation for financial and/or non-financial damages caused by Phoenix, including but not limited to general stress, aggravation and lost time.

Treasury Board of Canada Secretariat worked with bargaining agents to launch an online claims process by which former employees can request a payment for general compensation for damages, which is a payment equivalent to the leave credited to current employees. These former employees can now go online and access what is owed to them.

Other provisions for damages for current and former employees will be implemented in the months to come. These provisions will address the severe personal or financial hardship some experienced due to Phoenix pay issues, such as delays in receiving pension payments or lost investment income.

KEY FACTS • In June 2019, the Government of Canada finalized a joint agreement with bargaining agents, with the exception of PSAC, to compensate current and former employees who may have been impacted by the Phoenix pay system.
• In September 2019, TBS went back to the negotiation table with PSAC on the issue of damages. The negotiations were unsuccessful.
• Full implementation of the agreement is expected by 2020.