The Phoenix pay system was installed in 2016 to replace the outdated and inefficient Regional Pay System as part of the government`s efforts to modernize the pay system. However, the implementation of the new system was plagued with errors, leading to thousands of government employees receiving incorrect pay, delayed payments, or no payment at all.
To resolve these issues, the Phoenix pay agreement was signed by the Government of Canada and the Public Service Alliance of Canada (PSAC) in 2019. The agreement aimed to provide financial compensation to government employees affected by the Phoenix pay system errors and improve the overall pay system.
Under the Phoenix pay agreement, the government committed to creating a $900 million compensation fund to cover the financial costs of Phoenix pay system errors. The fund would be used to compensate employees for any financial losses incurred due to pay system errors, including unpaid wages, incorrect payments, and overpayments.
The agreement also provides additional compensation for employees who experienced financial hardship as a result of pay system errors. These employees may be eligible for up to $2,500 in compensation, in addition to any other compensation they receive from the fund.
In addition to financial compensation, the Phoenix pay agreement also includes measures to improve the pay system and prevent future errors. These measures include increased staffing and training of pay system staff, the creation of a new pay centre in Gatineau, Quebec, and the implementation of new software to manage pay system transactions.
Overall, the Phoenix pay agreement provides much-needed relief for government employees affected by the pay system errors. While the implementation of the new system was intended to modernize the pay system and improve efficiency, it ultimately resulted in widespread financial hardship for many employees. The government and PSAC worked together to find a solution to these issues, and the Phoenix pay agreement represents a significant step towards resolving the problems caused by the pay system errors.