Major Settlement for Affected Federal Workers

In a landmark decision, a class-action lawsuit has resulted in a settlement for non-unionized and casual federal public servants impacted by the notorious Phoenix pay system, which has caused significant payroll errors since its introduction in 2016.

Details of the Settlement

Pending approval from the Quebec Superior Court, this out-of-court settlement could see affected employees—those who worked between February 2016 and March 2020—receive compensation of up to $850. This includes casual employees, student staff, term employees working less than three months, part-time workers, and those appointed by the Governor in Council (GIC).

Background of the Phoenix Pay System

The lawsuit, initiated by the law firm Sarailis Avocats in 2017, aimed to address the long-standing problems caused by the Phoenix pay system, which is estimated to have cost the federal government a staggering $3.5 billion as of July 2023 due to ongoing payroll discrepancies and a growing backlog of unresolved cases.

Lawyer's Statement

Originally intended to modernize payment processes by consolidating multiple outdated systems, the Phoenix pay system instead became a source of frustration for thousands of workers. Attorney Christian Sarailis addressed the media, stating, "The Phoenix pay system has caused major issues for thousands of federal employees. The Government of Canada was a tough opponent in this case. However, the negotiations have resulted in a fair and equitable settlement for class members, compensating for the moral damages they endured."

Claims Process

Once the settlement is approved, affected employees can file a claim online or by mail. For the fiscal year 2016-2017, the maximum claim is $350, while amounts for subsequent fiscal years (2017-2018, 2018-2019, and 2019-2020) are capped at $175 each.

Comparison with Unionized Employees

In contrast, in 2019 and 2020, the government had already reached an agreement with several public service unions to compensate unionized employees who experienced similar issues. Those lump-sum payments were up to $1,000 for the 2016-2017 fiscal year and up to $500 for each of the following years.

Union Demands

Unions have consistently pressed the federal government for additional damages for affected workers, highlighting the stress and emotional toll the pay errors have caused.

Government's Assurance

The Treasury Board of Canada Secretariat issued a statement affirming the government's commitment, stating, "The Phoenix pay system has caused pay issues, and the Government of Canada will continue taking action to ensure all employees are paid correctly." They reassured that the settlement facilitates individual payments based on the number of eligible years worked.

Eligibility for Compensation

It’s important to note that casual and part-time public servants who previously received compensation for similar Phoenix-related issues will not qualify for this recent settlement. Additionally, employees have the option to opt out of the compensation if they choose.

Upcoming Hearing Date

Mark your calendars: a hearing with the Superior Court of Quebec is set for February 18th. This settlement marks a crucial step in addressing the grievances of federal employees who have suffered under the weight of the Phoenix payroll disaster. Will this finally bring closure to the years of frustration? Stay tuned!