Government of Canada compensating former employees for damages caused by the Phoenix pay system

From: Treasury Board of Canada Secretariat

News release

December 16, 2021– Ottawa, Ontario – Treasury Board of Canada Secretariat

The Government of Canada continues to take action on all fronts to resolve pay issues related to the Phoenix pay system. As of today, a claims process is available for former employees represented by the Public Service Alliance of Canada (PSAC) and by bargaining agent signatories of the 2019 damages agreement.

Through a single application process, eligible former employees can claim compensation for all general damages, and for the late implementation of the 2014 collective agreements.

This claims process reflects elements of the Phoenix damages agreement signed with PSAC in October 2020 as well as catch-up clause provisions negotiated with the bargaining agent signatories of the 2019 damages agreement. The catch-up provisions provide those eligible under the 2019 agreement with the same monetary benefits provided in the 2020 PSAC damages agreement. These include general damages compensation of up to $1,000 for the late implementation of the 2014 collective agreements.

With the launch of this claims process, all compensation elements of the Phoenix damages agreements, including the catch-up agreement, have been implemented. Eligible current employees received payments for these amounts earlier this year as part of their regular pay, and a claims process was launched last month to compensate both current and former employees represented by PSAC for severe personal or financial impacts due to pay system issues.

Quotes

“We recognize that the implementation of the Phoenix pay system has had an impact, directly or indirectly, on employees and former employees. Today’s launch marks a significant milestone as we implement the final element of the damages agreements reached with bargaining agents, ensuring that all those who have been affected will be fairly compensated.”

- Mona Fortier, President of the Treasury Board 

Quick facts

  • On October 23, 2020, the Government of Canada co-signed an agreement with the Public Service Alliance of Canada (PSAC) for damages incurred by the Phoenix pay system between 2016 and 2020.

  • The damages agreement with PSAC applies to approximately 175,000 current and 45,000 former employees represented by PSAC and paid through the Phoenix pay system. It also extends to the estates of deceased employees. 

  • There are measures in the agreement to help current and former employees who had financial costs and lost investment income, and who faced severe personal and financial impacts. The agreement also includes compensation of up to $2,500 for general damages and the late implementation of the 2014 collective agreements. 

  • The 2019 Phoenix Damages Agreement contained a “catch-up” clause that was triggered when the PSAC agreement that was signed in October 2020 included some elements that differed from the agreement negotiated with other bargaining agents in 2019.

  • The Government of Canada and the bargaining agents who co-developed the 2019 damages agreement signed a memorandum of agreement on the catch-up clause on March 3, 2021 to provide current and former employees covered under this agreement with the same monetary benefits as those covered under the PSAC agreement.

  • The catch-up agreement applies to about 118,000 current employees and 21,000 former employees/estates of former employees covered under the 2019 damages agreement and who can submit claims under this process.

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Contacts

Media Relations
Treasury Board of Canada Secretariat
Telephone: 613-369-9400
Toll-free: 1-855-TBS-9-SCT (1-855-827-9728)
Teletypewriter (TTY): 613-369-9371
Email: media@tbs-sct.gc.ca

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