[Canada] Woman loses home as government payroll debacle continues

In Newfoundland, Canada, a woman lost her house because the government of Canada stopped paying her while she was on contract with its own revenue agency, The Guardian reports.

Joanne Nemec Osmond’s nightmare is only the latest case in a debacle surrounding an automated payroll system which has led to 200,000 government workers in Canada being overpaid, underpaid or not paid at all.

The system, known as Phoenix, was developed by IBM. Earlier this year, The Globe and Mail reported that since the initial C$5.8m (US$4.5m) contract was signed in 2011, Phoenix has been amended 50 times and the cost has ballooned to C$650m as “stabilisation” efforts continue.

When the government launched Phoenix in 2016, Ms Nemec Osmond’s paycheques began to vary dramatically. “Every cheque, I was missing amounts; and no one could explain it,” she said.

After Ms Nemec Osmond was promoted in 2017, the problem escalated, Suddenly her pay stubs read $0. And although she stopped working for the government in April 2018, she reportedly continues to receive tax documents claiming she worked in 2020 and 2021.

“I have no idea how much I’m owed. My credit’s gone, the house is gone,” Ms Nemec Osmond said. “I just want someone to fix this.”

Problems with the system have led a number of federal employees to lose their homes, retirement savings and other assets. In some cases, Phoenix overcorrected overpayments by clawing back some employees’ entire paycheques.

“In a sense, I am volunteer until my debt is paid off that was created by the Phoenix pay system,” an Alberta employee told CBC in May.

The payroll problems have created considerable hardship for Ms Nemec Osmond and her two daughters. They used to have a house with a pool in the backyard and now reportedly live in subsidised housing with a back door that opens onto a four-lane highway.

Her youngest child is 11 and has suffered mental health problems as a consequence of the upheaval, Ms Nemec Osmond said.

“I can’t even drive by the house - it hurts,” she said.

The debacle has so far cost the Canadian government more than C$2.4bn and may cost even more as problems persist and employees file new compensation claims.

The Treasury Board of Canada Secretariat said it had resolved nearly all of the 27,955 compensation claims it had so far received. However, many claims for severe damages remain unresolved.

The government is presently testing a new payroll programme that it hopes will run much more smoothly.

When asked if she thought that programme would be better, Ms Nemec Osmond reportedly laughed.

“Good luck with that,” she said.

Source: The Guardian

(Links and quotes via original reporting)

In Newfoundland, Canada, a woman lost her house because the government of Canada stopped paying her while she was on contract with its own revenue agency, The Guardian reports.

Joanne Nemec Osmond’s nightmare is only the latest case in a debacle surrounding an automated payroll system which has led to 200,000 government workers in Canada being overpaid, underpaid or not paid at all.

The system, known as Phoenix, was developed by IBM. Earlier this year, The Globe and Mail reported that since the initial C$5.8m (US$4.5m) contract was signed in 2011, Phoenix has been amended 50 times and the cost has ballooned to C$650m as “stabilisation” efforts continue.

When the government launched Phoenix in 2016, Ms Nemec Osmond’s paycheques began to vary dramatically. “Every cheque, I was missing amounts; and no one could explain it,” she said.

After Ms Nemec Osmond was promoted in 2017, the problem escalated, Suddenly her pay stubs read $0. And although she stopped working for the government in April 2018, she reportedly continues to receive tax documents claiming she worked in 2020 and 2021.

“I have no idea how much I’m owed. My credit’s gone, the house is gone,” Ms Nemec Osmond said. “I just want someone to fix this.”

Problems with the system have led a number of federal employees to lose their homes, retirement savings and other assets. In some cases, Phoenix overcorrected overpayments by clawing back some employees’ entire paycheques.

“In a sense, I am volunteer until my debt is paid off that was created by the Phoenix pay system,” an Alberta employee told CBC in May.

The payroll problems have created considerable hardship for Ms Nemec Osmond and her two daughters. They used to have a house with a pool in the backyard and now reportedly live in subsidised housing with a back door that opens onto a four-lane highway.

Her youngest child is 11 and has suffered mental health problems as a consequence of the upheaval, Ms Nemec Osmond said.

“I can’t even drive by the house - it hurts,” she said.

The debacle has so far cost the Canadian government more than C$2.4bn and may cost even more as problems persist and employees file new compensation claims.

The Treasury Board of Canada Secretariat said it had resolved nearly all of the 27,955 compensation claims it had so far received. However, many claims for severe damages remain unresolved.

The government is presently testing a new payroll programme that it hopes will run much more smoothly.

When asked if she thought that programme would be better, Ms Nemec Osmond reportedly laughed.

“Good luck with that,” she said.

Source: The Guardian

(Links and quotes via original reporting)