Government of Canada and Public Service Alliance of Canada finalize agreement to compensate federal employees impacted by the Phoenix pay system
October 23, 2020 – Ottawa, Ontario – Treasury Board of Canada Secretariat
Today, the Government of Canada and the Public Service Alliance of Canada (PSAC), finalized an agreement to compensate current and former employees who may have been impacted by the Phoenix pay system and the late implementation of the 2014 collective agreements.
This agreement, first announced in July 2020 as a tentative deal, was co-developed by PSAC and the federal government, and provides compensation for damages incurred in fiscal years 2016–17 to 2019–20.
Similar to the Phoenix damages agreement co-developed by the federal government and other bargaining agents in 2019, there are measures in this agreement to help current and former employees who had financial costs and lost investment income, and who faced personal and financial hardships.
Current and former employees, who worked at least one day in a fiscal year, can expect to receive compensation of $1,000 for 2016–17 and $500 for each of the three subsequent years for damages caused by the Phoenix pay system. This also includes compensation for the late implementation of the 2014 collective agreements negotiated with PSAC.
Additional compensation, evaluated on a case-by-case basis, will be made available for those who missed opportunities to earn interest on savings accounts or other financial and capital investments, experienced delays in receiving severance or pension payments, or experienced severe personal or financial hardship due to Phoenix pay issues. The agreement also allows for the reimbursement of sick leave for employees and former employees who took such leave because of Phoenix.
More information on when employees, former employees and the estates of deceased employees can submit a claim for the additional compensation outlined in this agreement will be shared in the coming months.
The government, in collaboration with PSAC, aims to make this process as simple and streamlined as possible.
“The Government of Canada has been committed from the start to reaching a fair damages agreement that recognizes the real mental and emotional stress, and financial impact that the Phoenix pay system has had on public servants. As a result of this agreement co-signed today with Canada’s largest public service union, we are now able to compensate close to all employees impacted by the Phoenix pay system.”
- The Honourable Jean-Yves Duclos, President of the Treasury Board of Canada
"PSAC members have suffered for too many years because of pay problems brought on by the Phoenix pay system. Many had their lives turned upside down and the impact of those damages continue to this day. We are pleased to have reached an agreement that will allow PSAC members to be compensated for their financial losses, as well as for the pain and suffering they have endured. We look forward to working with the government to ensure that our members receive their compensation as soon as possible."
- Chris Aylward, National President, Public Service Alliance of Canada
This compensation agreement applies to up to 125,000 current and 35,000 former employees and the estates of deceased employees represented by PSAC and who are paid through the Phoenix pay system in the core public administration.
Separate agencies who use the Phoenix pay system are also expected to reach similar agreements shortly with PSAC. The agreements will apply to up to an additional 43,000 current employees and 18,000 former employees and the estates of deceased employees represented by PSAC in separate agencies.
Karl W. Sasseville
Director of Communications and Issues Management
Office of the President of the Treasury Board
Treasury Board of Canada Secretariat
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