[Canada] Phoenix payroll compensation bill rises to $711M

The Canadian government’s disastrous Phoenix Pay System has cost taxpayers $711 million in compensation and, according to newly released records, costs continue to climb, Western Standard reports.

The payments are in addition to reimbursement for thousands of employees who were underpaid or overpaid due to payroll errors, Blacklock's Reporter said.

A Treasury Board briefing note reportedly acknowledged ongoing demands from bargaining agents for additional compensation.

“We are aware bargaining agents have requested additional compensation for Phoenix damages,” the 2024 document stated. “We are committed to a continued dialogue with bargaining agents on this issue.”

Approximately $711 million has been paid in damages, to date, including $26 million in 2023, with another $16.5 million budgeted for 2025. However, officials noted that the final amount could be lower.

Employees affected by the payroll disaster were offered $2,500 in compensation for stress and financial hardship.

An estimated 62 per cent of Canada’s federal workers experienced payroll errors, leading to multiple audits and parliamentary reviews. The Treasury Board continues to process claims from employees who suffered severe financial consequences including eviction and foreclosure.

Despite the widespread failure of the Phoenix Pay System, no managers were dismissed. The Department of Public Works reported in July 2024 that ongoing costs related to Phoenix had reached $3.7 billion, with no final total in sight.

“We saw how that didn’t work,” Joyce Murray - Digital Government Minister at the time - said when asked about holding officials accountable.

Ms Murray added, “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.”

Source: Western Standard

(Quotes via original reporting)

The Canadian government’s disastrous Phoenix Pay System has cost taxpayers $711 million in compensation and, according to newly released records, costs continue to climb, Western Standard reports.

The payments are in addition to reimbursement for thousands of employees who were underpaid or overpaid due to payroll errors, Blacklock's Reporter said.

A Treasury Board briefing note reportedly acknowledged ongoing demands from bargaining agents for additional compensation.

“We are aware bargaining agents have requested additional compensation for Phoenix damages,” the 2024 document stated. “We are committed to a continued dialogue with bargaining agents on this issue.”

Approximately $711 million has been paid in damages, to date, including $26 million in 2023, with another $16.5 million budgeted for 2025. However, officials noted that the final amount could be lower.

Employees affected by the payroll disaster were offered $2,500 in compensation for stress and financial hardship.

An estimated 62 per cent of Canada’s federal workers experienced payroll errors, leading to multiple audits and parliamentary reviews. The Treasury Board continues to process claims from employees who suffered severe financial consequences including eviction and foreclosure.

Despite the widespread failure of the Phoenix Pay System, no managers were dismissed. The Department of Public Works reported in July 2024 that ongoing costs related to Phoenix had reached $3.7 billion, with no final total in sight.

“We saw how that didn’t work,” Joyce Murray - Digital Government Minister at the time - said when asked about holding officials accountable.

Ms Murray added, “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.”

Source: Western Standard

(Quotes via original reporting)