Millions in payouts are expected under new claims to compensate federal employees for damages caused by payroll errors, said Blacklock’s Reporter..Treasury Board President Mona Fortier told reporters Tuesday the ongoing impacts of the Phoenix Pay System failure are far-reaching..“We know Phoenix was difficult for people,” Fortier said..“We had an agreement with the bargaining agents for the damages that will be awarded to them.”.Public Service Alliance of Canada’s 220,000 current and former employees were earlier awarded $2,500 in general damages by the Treasury Board. However, further compensation will be paid for claims of bankruptcy and other hardships for union members who went weeks, even months without a paycheque, the board said..“We are determined to provide fair compensation,” said Fortier..The Parliamentary Budget Office calculated overall costs of the failed program would reach $2.6 billion..The Phoenix Pay System was launched in 2016 with the promise of cost savings and was to replace 46 separate federal payroll departments from as far back as the 1970s..What followed was garbled paycheques for 62% of employees which lead to numerous audits and parliamentary investigations. Although managers were faulted for launching the program without adequate testing, none were fired..“We saw how that didn’t work, to the great detriment of our public servants,” then-Digital Government Minister Joyce Murray earlier told reporters..“We’re going to take this step by step. It’s an open process, very inclusive. We’re involving the users, the public servants who will be paid by the system..“We will always have respect for taxpayer dollars. We also have a great deal of respect for our hardworking public servants. They have had a very difficult time with the pay system over the last few years.”.Actual costs of bankruptcy or lost credit scores will be compensated for in hardship cases, along with “mental anguish or trauma” caused by employees who faced unavoidable interest charges or were forced to cash out guaranteed investments such as RRSPs and term deposits to pay their bills..Terms of the payouts were covered in a 2020 Phoenix Pay System Damages Agreement with the Public Service Alliance, the largest federal union..In 2018, employees were shortchanged $369 million, according to testimony by then-Auditor General Michael Ferguson..“The government underpaid some employees and overpaid some employees,” said Ferguson..“We estimated $369 million in underpayments and $246 million in overpayments.”.Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
Millions in payouts are expected under new claims to compensate federal employees for damages caused by payroll errors, said Blacklock’s Reporter..Treasury Board President Mona Fortier told reporters Tuesday the ongoing impacts of the Phoenix Pay System failure are far-reaching..“We know Phoenix was difficult for people,” Fortier said..“We had an agreement with the bargaining agents for the damages that will be awarded to them.”.Public Service Alliance of Canada’s 220,000 current and former employees were earlier awarded $2,500 in general damages by the Treasury Board. However, further compensation will be paid for claims of bankruptcy and other hardships for union members who went weeks, even months without a paycheque, the board said..“We are determined to provide fair compensation,” said Fortier..The Parliamentary Budget Office calculated overall costs of the failed program would reach $2.6 billion..The Phoenix Pay System was launched in 2016 with the promise of cost savings and was to replace 46 separate federal payroll departments from as far back as the 1970s..What followed was garbled paycheques for 62% of employees which lead to numerous audits and parliamentary investigations. Although managers were faulted for launching the program without adequate testing, none were fired..“We saw how that didn’t work, to the great detriment of our public servants,” then-Digital Government Minister Joyce Murray earlier told reporters..“We’re going to take this step by step. It’s an open process, very inclusive. We’re involving the users, the public servants who will be paid by the system..“We will always have respect for taxpayer dollars. We also have a great deal of respect for our hardworking public servants. They have had a very difficult time with the pay system over the last few years.”.Actual costs of bankruptcy or lost credit scores will be compensated for in hardship cases, along with “mental anguish or trauma” caused by employees who faced unavoidable interest charges or were forced to cash out guaranteed investments such as RRSPs and term deposits to pay their bills..Terms of the payouts were covered in a 2020 Phoenix Pay System Damages Agreement with the Public Service Alliance, the largest federal union..In 2018, employees were shortchanged $369 million, according to testimony by then-Auditor General Michael Ferguson..“The government underpaid some employees and overpaid some employees,” said Ferguson..“We estimated $369 million in underpayments and $246 million in overpayments.”.Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
