Unions seek court action over federal payroll system
› OTTAWA — Unions representing federal public sector workers are asking a court to order the federal government to implement a payroll administration system that enables it to pay its employees accurately and on time.
The unions, including the Public Service Alliance of Canada (PSAC), say the government’s new payroll system, called Phoenix, is not working and its dysfunction is a breach of the government’s duty as an employer to provide timely and accurate pay for its employees.
In an application to the Federal Court, the unions say problems with the system have resulted in the government failing to pay some employees their regular earnings, overtime pay and extra duty pay, as well as the government not processing information needed for disability insurance, employment insurance and pension payments.
“Since its implementation, Phoenix has exhibited ongoing and significant systemic problems in the administration of pay for public service employees,” says PSAC.
Public Works and Government Services Canada (PWGSC) has acknowledged there are problems and said, “While many of the issues raised have been addressed, more needs to be done, and the remaining issues are not being addressed as quickly as we would like.”
To help get through a backlog of pay problems, the department says it has created a temporary pay unit. “Over the next few months, we expect this unit will resolve many long-standing, frustrating pay issues.”
The government says it will also provide salary advances, if requested, for employees facing financial difficulties because of the backlog. In addition, it is asking employees to continue to report all pay problems they experience.
The Phoenix pay system is replacing the government’s previous payroll system, which PWGSC says is more than 40 years old and too difficult to maintain. The change is part of an overhaul of federal payroll services that began in 2009.
It also includes the consolidation of payroll services for federal departments, agencies and Crown corporations at a new pay centre in Miramichi, N.B.
