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Federal civil servants with access to a federal process to file grievances will be unable to take part in the Phoenix pay system class action lawsuit, according to a recent ruling by the Supreme Court of Canada.
CBC News reports that a bid by a law firm to expand the proposed Class was rejected by Quebec’s Court of Appeals without a hearing, which prompted the law firm to take the case to the Supreme Court. After the class action lawsuit was authorized by a Superior Court, the law firm moved to expand the proposed Class to represent additional unionized and non-unionized employees.
The Supreme Court provided no explanation for why they did not hold a hearing; however, the move will potentially exclude thousands from the class action lawsuit filed over alleged failures of the Phoenix pay system.
The law firm representing the Class reports that, even without the expansion, up to 70,000 Class Members could be included in the legal action that is seeking at least $500 per federal worker affected by Phoenix pay system glitches.
Indeed, the Phoenix pay system class action lawsuit was launched after seemingly endless issues with the new pay system for federal employees implemented in 2016. According to CBC News, many employees have either experienced underpayment, no payment, or even overpayment since the Phoenix pay system was started.
The Phoenix pay system class action lawsuit claimed that federal employees were forced to pay the price for mistakes in their pay. For employees who were overpaid, they were forced to pay back the difference; however, the higher compensation was sometimes reflected in the workers’ tax documents, forcing them to pay more at tax time as well.
Employees who were unpaid or underpaid reported that, if they were paid, they received lump-sum payments, also affecting their federal tax returns. In addition, the pay irregularities reportedly affected their families and dependents. Some employees reported that they had to dip into their savings or retirement funds to deal with lack of pay due to the Phoenix pay system. Others reported effects on their retirement and career plans.
The lead plaintiff in the class action lawsuit claimed that, as an employee for Passport Canada between January and August 2016, she was overpaid by $1,000. She says she was required to pay that money back.
“The action alleges that the Government of Canada has failed to fulfil its obligations towards its employees during the implementation of the Phoenix pay system and in its management of the problems that ensued,” states the Phoenix pay system class action lawsuit website. “The action seeks compensation for the employees affected by the implementation of the Phoenix pay system starting on February 2016.”
In February, the federal government entered into an agreement to reimburse some workers affected by Phoenix pay system irregularities. Under the terms of the Phoenix Pay System Agreement, certain current and former employees who suffered losses greater than $1,500 would be able to make claims for cash as well as additional leave days.
The Phoenix Pay System Agreement only applied to certain bargaining agents representing employees in various units of the Canadian government. Those participating in the Phoenix pay system class action lawsuit are not eligible to participate in the agreement.
Phoenix Pay System: Cost Cutting Costs Taxpayers
The Phoenix pay system was touted as a replacement for an antiquated pay system for federal employees that would save taxpayers money. However, after being deemed an “international embarrassment” by lawmakers investigating the pay system debacle, it was reported that it would end up costing taxpayers $2.2 billion by 2023.
Problems reportedly arose before the Phoenix pay system was implemented. IBM told the government in 2015 that it recommended a delay in implementing the new system. Pay centre employees were reportedly overwhelmed and a pilot test for the system was cancelled.
However, two independent consultants recommended continuing the rollout of the new system as long as mitigation measures were taken. Shortly after rollout began in 2016, employees in departments affected by the change began complaining of issues. Despite complaints, the Phoenix pay system was implemented across the federal government.
As complaints of underpayment, nonpayment, and overpayment proliferated, the costs of fixing and ultimately replacing the Phoenix pay system reportedly ballooned. In addition, several lawsuits were filed. The 2018 investigation into the pay system reportedly found that approximately half of Canada’s public servants had been affected by pay irregularities since the implementation of Phoenix. Additionally, by 2018, there were still 600,000 unanswered pay requests by the Public Service Pay Centre.
Have you worked for the government and had problems with the Phoenix pay system? Tell us your story in the comment section below.
The plaintiffs are represented by Saraïlis Avocats Inc.
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4 thoughts onPhoenix Pay System Class Action Lawsuit Expansion Rejected by Supreme Court
I am currently a victim of the Phoenix pay system. I had been working as a Unit Clerk, a position I accepted on the belief it would be reclassified. Then it never was… My pay was good for a bit until I took LWOP after my mother passed away, and when I returned, found I had to repay some overpayments back from that on my next few paycheques. I was not aware I had been overpaid but if I recall it was something to do with using vacation days that I actually didn’t have. I accepted that. Going forward, I paid more attention to my paycheques knowing that issues like that were quite common and if I wasn’t on the ball, I could end up in a big fat mess. All was good until the second time I went on LWOP to be at home for my children. I was having a lot of issues with my oldest son and I just couldn’t work and focus properly. I knew I was letting everyone down by being there when my mind was elsewhere. When I left, I was put on a priority posting list and that ended in 2020, whereupon my employment was terminated. During that leave, we moved. Shortly after that move, my son died. It didn’t even dawn on me to change my address or do much of anything at that point. I set up mail forwarding but that was as far as I got because I did that before we moved. Fast forward to today. I received a call that I had been overpaid. Well, it didn’t shock me too much. This is Phoenix after all. In my mind, I thought, well, I’ll pay back the amount and just call it done. Before I went on LWOP, I was quite stressed, it was possible I didn’t notice that extra pay? Then she told me the amount and I just about had a bird. All I can think is I was paid for some leave that I thought I was entitled to but probably turned out I wasn’t? I just don’t know. I have no access to the system to check anything. I don’t remember much at all from back then either. Racking my brain trying to figure it out… Did I get paid still during leave? Am I wrong? Did I call them about it? I think I might have? I just don’t remember. For now, I have to wait to hear what’s happening with it. I have no idea where they got this amount from… So, they have my new address. I gave them my email address again too even though that has never changed. Thankfully I still had the same phone number so they could finally reach me. Not their fault, I know. Admittedly there’s so much I should’ve done to stay on top of it. Still doesn’t change the fact that this just knocked me for six. Like most people I’m sure, I truly hate owing money. Like, I loathe it. And the amount they are claiming, yikes. I wanted to return to that job one day when I was ready again. I can accept problems with payroll can happen sometimes… to this extent though? It’s just too much. I may have to return to work anyway just to get this paid off. The cause of my stress is gone now but I cry every single day. How many people want to work with an employee that bursts into tears at any given moment? … ugh. So that’s my story with phoenix so far. Might be a long way to go until it’s all cleared up. Probably have to sell a kidney! lol
Shortly after going on long term disability, I received a notification that there had been overpayment and was given an amount. I was told that I would be contacted to arrange reimbursement. I got a letter over a year later simply saying that the overpayment situation would soon be addressed. There were no details about dates, amounts or how it would proceed. I never heard anything after this.
However when we were expecting to receive retroactive salary adjustment, I didn’t receive anything. No deposit, no letter or email with an explanation, no pay stub.. Nothing. When I got in touch with the pay center, the agent told me that the payment had been withheld to repay the overpayment. However all of a sudden, the amount owed was different than what I was told initially. The agent wasn’t able to explain the reasons for the new higher amount.
So I basically have no idea how there were additional overpayments or what the actual amount was. Nor was I able to know if I still owed, and if so, how much was left to reimburse after the retroactive payment was kept without any notice. I requested to have all of the information sent to me. That was in February, I’m still waiting.
In early April we were supposed to receive our compensation for Phoenix damages and I was sure I would be getting it as well. Nope. Nothing. As my employment was terminated March 31st because of my long term disability/sick leave, I assumed my file would be finalized in Phoenix and I would receive my vacation pay, etc. Nothing.
It is not just Phoenix that is a mess, it is the whole system that is pathetic. It is embarrassing to see how inadequate our government is as an employer, when it should lead by example. If any other employer operated like our government does, it would be reprimanded, fined and sued!
I suppose I should be glad my Phoenix issues are not as serious as some others. But it’s just the tip of the iceberg.
Sorry for the long rant.
Pnauffts@hotmail.com.. I never received my $2500 from Phoenix pay system on retired medically I work those years from 2006 up to 2019 in plus I never got paid my lady’s sick days bank days in money in my bank spin 2 in a 1/2 years can anybody explain how this is happening they only a lot of money
add me please