QUESTION PERIOD — Public Services and Procurement
Phoenix Pay System
April 30, 2026
Senator Moreau, it will come as no surprise to you that I am rising again to speak to the Phoenix issue. As a past president of the CNESST and a labour lawyer, I am still outraged that some public servants had to work without being paid properly.
The Auditor General has examined this issue four times. In her latest observations on the consolidated financial statements, she noted that she was still finding mistakes in public servants’ pay, and she indicated that Public Services and Procurement Canada has made very little progress in clearing its substantial backlog.
Is the government prepared to negotiate additional restitution for workers still struggling with the Phoenix fiasco, on top of the settlement that was already reached?
Thank you for the question, Senator Oudar. You are very diligent, because you’ve expressed concerns about the Cúram software, which is set to replace Phoenix. That is a fair question. I spoke with the Auditor General. The important thing is to ensure that we are reducing the number of outstanding cases. In the case of Phoenix, these cases have been reduced considerably and they should all be dealt with before the new Cúram pay system is put in place to prevent the same problems from happening again with the new system.
That is why the government has asked to work very closely with the Auditor General to carry out a review before the new pay system is implemented. I can’t comment on a compensation program like the one you suggested in your question.
Senator Moreau, Phoenix payroll errors have had significant tax implications for public servants, including incorrect T4 slips, tax overpayments and CRA penalties. The 2020 settlement did not cover all of these tax issues. Is the government prepared to compensate public servants for these ongoing tax issues?
I will repeat what I said at the end of my answer to your main question. I can’t comment on whether the government intends to provide additional compensation above what has already been authorized. The government is well aware that Phoenix was a fiasco, and I don’t think it is an exaggeration to use that word. The government wants to ensure that the implementation of Cúram goes smoothly and that we don’t have the same issues as we did with Phoenix.
