24-04-2025
Quebec court approves Phoenix pay system settlement
The federal government will begin settlement payments for non-unionized and casual public servants affected by the Phoenix pay system failures.
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On April 15, the Superior Court of Quebec approved the settlement of a class action lawsuit launched on behalf of the workers who suffered hardship due to pay issues with the system. The settlement will pay $350 to workers affected between 2016-17 and $175 for the preceding three years. The maximum an eligible worker can receive is $875.
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The federal government settled the class action lawsuit late last year.
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Ezmie Bouchard, who worked at Passport Canada in 2016, was the lead plaintiff in the lawsuit, which was launched in 2017. Bouchard claimed that she received $4,800 less than what she should have because of mistakes on her pay cheques. The lawsuit said she was then overpaid and had to repay $1,000 to the government.
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Unionized employees were excluded from the authorized judgment, and were subject to a separate agreement between the federal government and their unions. In 2020, Canada's largest public service union, the Public Service Alliance of Canada, reached an agreement that gave 140,000 workers $2,5000 in compensation each.
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Nine years into the debacle, the work to clear a massive backlog of pay issues is ongoing. As of March 26, the Phoenix backlog had 349,000 transactions remaining to be processed.
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The cost of Phoenix's failure has been ballooning. Since 2017, the government has spent at least $3.5 billion on the Phoenix pay system.
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The government has spent more than $150 million since 2018 looking into a platform to replace Phoenix. A February 2024 report found that Dayforce was being considered as a 'viable option' for the next HR and pay system.
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A decision on whether the federal government will move to Dayforce was delayed until after the election. The federal government had said it would make a decision on whether to adopt Dayforce in March, but that timeline was disrupted by the caretaker convention that is activated during an election.
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