The failed pay system for Canadian federal government employees has now cost taxpayers $3.65 billion and counting, a Department of Public Works briefing note state. The Phoenix Pay System was launched in 2016 on a promise it would save taxpayers $70 million by centralizing 46 separate federal payroll departments into a single office in Miramichi, NB., per Blacklock’s Reporter. The April 15 brief on the system’s failure documents the latest damages.“We have put in place a significant number of system enhancements and fixes which have helped bring increased stability to the pay system and overall pay administration environment,” wrote the department. “To date $3.65 billion has been invested in Phoenix.”“The Government of Canada is committed to supporting employees and continues to take action on all fronts to resolve public service pay issues. The launch of Phoenix we have implemented a series of measures and made consistent progress.”Auditors in 2017 determined new software was used without testing and immediately interfered with paycheques for a majority of employees. Federal auditors in 2018 called the Phoenix system an “incomprehensible failure.” No one was fired. Simon Page, assistant deputy public works minister, testified last November 27 at the Commons Government Operations Committee that costs were ongoing.“It is not only fixing it. That is for public servants who worked on the Phoenix Pay System, who worked on paying public servants every day,” testified Page. “That is where the vast majority of that investment has been made to date.”“It also includes maintaining the system to continue to pay public servants on a regular basis. That total number includes both the cost of continuing to pay public servants as well as dealing with items like the backlog and continuing to improve the system.”In 2018 hearings of the Commons Public Accounts Committee, Michael Wernick, then-Secretary to Cabinet, testified, “I do not agree the pay system was an incomprehensible failure.” “I think it’s entirely comprehensible,” said Wernick. “It was avoidable. It’s repairable. And it gives us all kinds of lessons about how to build a better public service.”“How could this happen?” asked Liberal MP Alexandra Mendes.“There is no single culprit or no single explanation,” replied Wernick. “The people that are looking for simplicity to say, here’s two or three people that we can blame, or here’s the explanation – my take on the pay system is it was a perfect storm, a confluence of all kinds of factors.”Judy Foote, the Liberal cabinet minister who launched the Phoenix Pay System, subsequently resigned and in 2018 was appointed Lieutenant Governor of Newfoundland and Labrador. Marie Lemay, the deputy minister who oversaw the program’s launch, was subsequently appointed Master of the Royal Canadian Mint at $318,000 a year.
