Canada compensating former employees for damages caused by Phoenix pay system

From: Treasury Board of Canada Secretariat

The Government remains determined to address the impacts that the implementation of the Phoenix pay system has had on public servants.

Today, as part of its implementation of the agreement on damages caused by Phoenix, the Government launched a process by which former employees can request the general compensation for damages, which is a payment equivalent to the leave credited to current employees. This is part of the joint agreement co-developed with federal public service unions in June, 2019 to compensate more than 140,000 current and former employees.

Over the summer, federal organizations credited eligible current employees with additional vacation days for damages caused by the Phoenix pay system. This leave represents general compensation for financial and/or non-financial damages, including but not limited to general stress, aggravation and lost time.

The damages agreement also includes additional compensation for those who experienced severe personal or financial hardship due to Phoenix, those who experienced other financial costs or lost investment income, and those who took leave for health issues related to Phoenix. This compensation will be assessed on a case-by-case basis for eligible employees whose bargaining agents have signed the agreement. The Treasury Board Secretariat continues to work on implementing these elements in collaboration with these bargaining agents.

Stabilization of the Phoenix Pay System remains a top priority even as the government continues to work on the Next Generation human resources and pay solution.

Quotes

“Our commitment to Canada’s public servants is steadfast: our public servants deserve to be paid properly for their important work. We continue to take action on all fronts to resolve pay issues, including providing fair and practical compensation for the burden that the Phoenix pay system has placed on employees, and former employees.”

– The Honourable Jean-Yves Duclos, President of the Treasury Board

Quick facts

  • The agreement provides compensation to employees, former employees and the estates of deceased employees, for fiscal years 2016‑17 to 2019‑20.

  • The following public service unions have signed on to this agreement: Association of Canadian Financial Officers, Association of Justice Counsel , Canadian Association of Professional Employees, Canadian Federal Pilots Association, Canadian Merchants Service Guild, Canadian Military Colleges Faculty Association, Canadian Union of Public Employees 104, Federal Government Dockyard Trades and Labour Council (East), Federal Government Dockyard Trades and Labour Council (West), Federal Government Dockyard Chargehands Association, International Brotherhood of Electrical Workers, Professional Association of Foreign Service Officers, Professional Institute of the Public Service of Canada, Unifor, Union of Canadian Correctional Officers.

  • Separate agencies have negotiated a similar agreement with their bargaining agents.

  • Federal organizations were successful in crediting current employees with additional leave before the November deadline set out in the agreement.

  • About 125,000 employees were each credited with up to four days of additional annual leave that covers 2016‑17 to 2018‑19. Next summer, they will receive an additional one‑day leave credit for fiscal year 2019‑20.

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