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.