Government Settles Phoenix Class-Action Lawsuit

The federal government has reached a settlement in a class-action lawsuit brought by non-unionized and casual public servants affected by the Phoenix pay system fiasco. The lawsuit aimed to compensate these employees for the hardships they faced due to the problematic rollout of Phoenix, alleging that the government did not fulfill its obligations to these workers during that time.

Christian Saraïlis, a lawyer representing the plaintiffs, acknowledged the challenges faced by thousands of federal employees due to the Phoenix pay system. Despite the government putting up a tough fight, negotiations have led to a fair and just settlement for class members to address the moral damages they endured.

The lawsuit was initiated in 2017 and certified by a Quebec judge in 2018, with Ezmie Bouchard, an employee at Passport Canada, as the lead plaintiff. Bouchard claimed to have been underpaid by $4,800 due to errors in her pay cheques, leading to further complications when she was overpaid and had to repay $1,000 to the government.

The settlement will cover casual employees, student staff, term employees, part-time employees, and employees working for the government between February 2016 and March 2020 who experienced pay issues because of Phoenix. Each member’s payout will be determined by the number of eligible years worked in the affected categories, with individuals able to claim up to $875 based on their tenure with the federal government during the specified period.

While the Treasury Board has not disclosed the total settlement amount and awaits judicial approval, it confirmed the commitment to ensuring that government employees are rightfully compensated. The settlement underscores the government’s focus on rectifying the unresolved issues with the Phoenix pay system while exploring Dayforce as a potential replacement.

With over $150 million spent since 2018 investigating alternatives to Phoenix, the government aims to provide an estimate of when and how Dayforce could be implemented by the end of the fiscal year, with no expected deployment before March 2026. This ongoing effort highlights the government’s dedication to addressing the challenges faced by public servants and improving the payroll system for the future.