Federal Public Service

Day of Action Holds Government to Account
for Phoenix Pay System

Ottawa, February 28, 2019 Day of Action.

Federal public service workers held a Day of Action on February 28 to demand justice and immediate rectification of the chaos sown in the lives of thousands of workers by the Phoenix Pay System. Some 500 workers rallied in downtown Ottawa and blocked entry into two major federal government buildings.

The federal workers provide key services to Canadians, which are the practical realization of people's social and political rights. The workers who provide them must be given the proper conditions to do their important work, including peace of mind that their employer, the Treasury Board of Canada, will pay them promptly and properly.

In its call to action for February 28, the Public Service Alliance of Canada (PSAC) stated, "Three years after the launch of the Phoenix Pay System, thousands of PSAC members continue to be plagued by pay problems: they are underpaid, overpaid or not paid at all.

"On this third anniversary of Phoenix, PSAC members will come together to further increase pressure on the government for urgent action. On February 28, PSAC will hold a rally in the National Capital Region to kick off a series of escalated actions around the country in demand of: more concrete action to reduce Phoenix cases; a real timeline to end these pay nightmares; and damages to compensate the hundreds of thousands of public service workers who have been impacted."

Ottawa, February 28, 2019.

PSAC explains that since last year's February 28 Day of Action, the union has:

- Halted the recovery of overpayments and emergency pay until employees' pay files have been cleared of all outstanding transactions, meaning employees will receive any and all funds they are owed before they must reimburse the employer for any overpayments or emergency pay.

- Expanded the Treasury Board's claims process for Phoenix related financial losses.

- Ended gross payback for overpayments. In January, the federal government finally proposed tax legislation so that it can no longer force workers to reimburse the gross amount of the overpayment (CPP payments, income tax deductions, etc.) -- which can be significantly more than the amount they received.

PSAC also says, "At the start of 2019, the Public Service Pay Centre was still facing a backlog of over 280,000 cases. And after three years of Phoenix, about two-thirds of [human resources] data is still being inputted late, causing pay problems across the board. Phoenix continues to also delay the implementation of our collective agreements and the retroactive pay our members are owed."

According to estimates, the total cost to fix the Phoenix Pay System will exceed $1.2 billion with work only completed by 2022-2023. The union is demanding that the government:

- Provide damages to all public service workers for the great financial and emotional hardship they have endured because of Phoenix;

- Provide the additional staffing and training needed to assist members at the Client Contact Centre and the Public Service Pay Centre;

- Reduce Phoenix cases by ensuring HR data is entered on time;

- Eliminate the backlog of Phoenix cases, including implementing collective agreements and delivering retroactive pay;

- Provide a clear and accountable timeline to stabilize Phoenix, eliminate the backlog, and transition to a new pay system.

Government Bargaining Offer Adds Insult to Injury

Charlottetown, PEI, February 28, 2019.

The dedication of federal public service workers to carry on their work despite the hardships caused by Phoenix has been met with an unacceptable bargaining offer by the government.

On December 10, 2018, the union wrote, "The Liberal government tabled a series of offensive counter-proposals in the latest talks between the union and Treasury Board. After months of government delays and insulting offers, PSAC bargaining teams representing 90,000 federal public service workers have declared impasse and filed for a Public Interest Commission (PIC) to help negotiations move forward.

"The government proposed to increase wage rates by only 0.75 per cent per year for four years, well below the rate of inflation, and refused to make the increase retroactive to the start of the term of the collective agreement. In addition, they requested the new agreement only take effect 365 days after it is signed by both parties, amounting to a two-year wage freeze for PSAC members."

"It's outrageous that the Trudeau government won't even come to the table with a serious offer after our members have been waiting three years to get paid correctly under Phoenix," said Chris Aylward, PSAC National President. "We've tried to get this government to bargain in a fair and respectful manner -- it's clear we've reached an impasse. Prime Minister Trudeau promised a new relationship with public service workers -- one of respect -- but that couldn't be further from what happened this week. This is a real betrayal."

PSAC reports that the Treasury Board also ignored important demands for improvement in areas such as work-life balance, workload, leave provisions and use of temporary workers.

Aylward added, "We're angry, and we're not going to let the Liberal government get away with this. Every day PSAC members show up to work not even knowing if they're going to get paid properly -- they deserve working conditions that reflect that dedication.... We won't back down until they get it."

Workers' Forum calls on everyone to stand with the federal public service workers in this fight for their rights and dignity.