***Update: March 5th, 2024***

 

***REMINDER***

Annual General Meeting - aka AGM

Wednesday, March 6, 2024

Time : 12 to 1pm (1hr)

Location : CMAT Rm 205

 

***Update: March 1st, 2024***

 

State of Phoenix: eight years of the pay debacle

 

This week marks yet another unfortunate milestone in the history of a pay system that continues to harm hundreds of thousands of federal public service workers. From an overwhelming backlog in pay transactions to compromised opportunities for career advancement and delayed retirement plans, this pay system continues to take a heavy toll on our members.  

In year eight of this disaster, here’s the current state of Phoenix, its ongoing impact on workers, and what PSAC is doing to make workers whole. 

A growing backlog of pay files and stress 

As of January 2024, there remains a staggering 444,000 pay transactions in the backlog, both old and new. In addition, month over month since 2021, the number of cases that have been unresolved with the Public Service Pay Centre for at least one year has only gone up.  

Members continue to experience massive delays in the timely processing of all pay transactions. Although 25 days is the service standard, the median – or middle point – for the resolution of pay issues is 182 days. Of these cases, almost half are more than a year old.  

Eight years later, there’s no end in sight to the frustration and anxiety Phoenix continues to cause. Of the total cases in the backlog, more than 75% are not being processed within service standards, leaving many workers waiting two years or more to see their pay issues resolved. There are more than 56,000 pay file terminations in the backlog, about 1,000 of them having severance owed to members.  

There are also more than 16,000 pay file transfers from workers who’ve changed jobs or departments who still aren’t getting their correct pay. Pay file transfer cases often trigger a domino effect on members leading to a multitude of pay issues to resolve, such as receiving correct pay, correct overtime, or acting pay. 

Hundreds of thousands more cases from workers who didn’t start getting paid when they returned from maternity or disability leave, or who are waiting for their new rates of pay, retroactive payments or other money owed to them. 

In almost every single case, there is money owed to members. Members’ ability to take on acting opportunities are inevitably tarnished because of inaccurate pay issues and implications on members’ leave banks.  

Government continues to claw back overpayments 

The initial wave of the government’s overpayment recover process took federal public service workers by surprise. Thousands received letters regarding overpayments from 2016, and members continue to face impacts of this heavy-handed approach to recovering overpayments. 

To add insult to injury, after admitting the next potential fix for Phoenix is still years away, the government has diverted the only real solution to current pay problems – compensation staff – away from tackling the enormous backlog of pay issues. Instead, they’ve begun an aggressive claw back of overpayments from tens of thousands of workers because the government’s ability to have that money paid back expires after six years, dating back to when Phoenix launched in 2016. 

Strict administration of overpayments results in mistrust of a system that impacts members’ pay and livelihoods. Instead of being provided clear and transparent details, members are forced to accept information in letters sent from the pay centre that they cannot independently verify and as a result, are forced to accept under duress.  

These tactics force members into a corner where they are left in a state of uncertainty.  

Claims for severe impact 

As part of the Phoenix damages agreement PSAC negotiated in 2020, PSAC secured a new claims process for workers to be reimbursed for “out-of-pocket” expenses and severe damages caused by the broken pay system.   

The process was introduced so that all members have the chance to be compensated for severe impacts and hardships they endured above and beyond the $1,500 in general damages for pain and suffering PSAC negotiated on behalf of all members. 

As part of the current agreement, claims only cover losses from April 1, 2016, to March 31, 2020. This week, PSAC formally called on Treasury Board to begin negotiations to extend the severe impact claims process from 2020 to today and beyond as members continue to be impacted by pay issues four years later.  

It’s also unacceptable that Treasury Board continues to reject severe impact claims at an alarming rate – more than 75% of claims have been rejected, denying justice for workers severely impacted by Phoenix. 

The Treasury Board Claims Office also typically undervalues the claims that are accepted. 

PSAC is working to changes the criteria used by the Claims Office to assess claims so that members may be fairly compensated for severe losses and hardship they’ve endured. 

What PSAC is fighting for  

Last week, in a victory for PSAC members impacted by the Phoenix pay fiasco, PSAC secured an agreement with the Canada Revenue Agency to treat up to $1,500 of the Phoenix general damages compensation members received in 2021 as non-taxable.   

Unfortunately, our work to resolve the Phoenix pay disaster is far from over. Our members continue to be plagued by pay issues, and deserve to be paid accurately and on time every pay period and to be compensated for the ongoing financial hardships they are enduring resulting from the employer’s mismanagement of their pay.  

On the anniversary of Phoenix, PSAC continues to call on the government to:  

• Formally begin negotiating an extension to the Phoenix general damages and the severe damages claims process from April 1, 2020, to present day and beyond to compensate members for the ongoing pain and suffering caused by Phoenix. Until federal public service workers are paid properly and on time – every single time – workers deserve additional damages.

• Eliminate the backlog of Phoenix pay problems and prevent further issues by hiring, training, and retaining more compensation advisors. 

• An end to the government’s heavy-handed and aggressive overpayment recovery process until workers can be provided with clear and accurate information. 

• Provide more detailed information about the recovery of overpayments for workers;   

• Improve communication by allowing workers to speak directly to a compensation advisor about their case;  

• Clearly outline workers’ obligations around the six-year statute of limitations to pay back the overpayment. 

• Launch a national inquiry into the Phoenix pay disaster. 

Next Generation 

The road to a new pay system that could one day replace Phoenix is still years away. The federal government has begun testing the viability of Ceridian’s Dayforce pay platform as the next generation pay system, and have been testing the system in select departments since 2022. 

They will now expand their testing to other departments and agencies in the spring of 2024. 

PSAC continues to emphasize to the government that any new system cannot be introduced to the federal public service without considering the expertise and input from bargaining agents representing those workers and the compensation staff who are responsible for processing pay transactions.  

Continuing to advocate for members 

Every day, PSAC members, retirees and former members come to our Phoenix team for help with their severe pay issues when they have nowhere else to turn.  

Despite promises made by the federal government to ‘fix Phoenix’, eight years later, the standard waiting period for any payroll-related problems to be addressed has grown to two years. Whether workers are overpaid, underpaid or not paid at all, Phoenix problems continue to seriously impact federal workers paid by the broken system. 

That’s why our dedicated Phoenix team supports hundreds of members every month and escalates severe pay issues to ensure members with serious pay problems receive the help they need. 

Members across the country also continue to lobby Members of Parliament to push the government to take action and ensure that Canada’s largest employer gets this right. To get involved in lobbying efforts in your region, contact your Regional Office.  

If you or someone you know is affected by the Phoenix pay disaster and needs help, contact PSAC’s Phoenix team by selecting one of the Phoenix options in the “What is your inquiry about?” drop down menu.  

If you want to know more about what compensation you’re entitled or find out more about our ongoing work pushing the government to fix the Phoenix nightmare, browse the resources on our Phoenix page. 

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UPDATED: Taxability of Phoenix damages – victory for members across the country

 

Retired and former PSAC members: If you are a retired or former PSAC member and received your Phoenix general damages payment in 2022 or a subsequent year (likely because you retired and had to apply for Phoenix damages), and have not already filed a notice of objection, you must file a notice of objection by April 30, 2024 to be eligible for Phoenix general damages compensation to be deemed non-taxable. Detailed information for members, former members, and retirees who received damages compensation in 2022 or a subsequent year is available here. 

In a victory for PSAC members impacted by the Phoenix pay fiasco, PSAC has secured an agreement with the Canada Revenue Agency to treat up to $1,500 of the Phoenix general damages compensation members received in 2021 as non-taxable.  

Under the Phoenix damages agreement negotiated by PSAC in 2020, up to $2,500 in damages was awarded to members who suffered under the Phoenix pay system from 2016 to 2020. PSAC has long stressed that these damages should not have been taxed, and after lengthy deliberations and a Reference filed with the Tax Court of Canada, Canada Revenue Agency (CRA) has agreed that a majority of the damages – those specifically allocated to cover the pain and suffering experienced by workers – are not taxable. Revenu Québec is not a party to the settlement reached with CRA, but has already begun treating other Phoenix taxability objections similarly.  

This decision means that members who file or have already filed a notice of objection regarding the taxation of Phoenix damages will be reimbursed the taxes that should not have been deducted from their damages payment in 2021. In the test case that PSAC brought to the Tax Court, Canada Revenue Agency provided a tax reimbursement of $492, but the amount will vary for individual members based on their location, income, and whether they received the full or partial Phoenix damages payment.

Over the past two years, PSAC has encouraged members to file a notice of objection, or an extension to file a notice of objection. If you did so already, no other action is required at this time.  

All members who have not already filed a notice of objection must file an extension request and notice of objection by April 30, 2024 to be eligible for their Phoenix general damages compensation to be deemed non-taxable.  

Please complete the steps outlined below as soon as possible to avoid missing the deadline. 

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How to be reimbursed taxes on Phoenix damages 

Residents outside of Quebec 

If you have not filed an objection with CRA regarding the tax treatment of any Phoenix damages you’ve received, you can still file a request for an extension of time to object and an individual objection regarding the taxability of the $1,500 portion of Phoenix damages for pain and suffering in your 2021 taxation year.  

Should you wish to challenge the taxation of the remaining $1,000 for the late implementation of the 2014 collective agreement, you should seek independent tax advice to move forward.  

You do not need to take any action if the following circumstances apply:  

• You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages prior to April 30, 2023; or 

• You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages and a request for an extension to object after April 30, 2023.  

If the above circumstances do not apply to you, please follow the following steps as soon as possible and no later than April 30, 2024, to preserve your rights:  

Option 1: If you have subscribed to CRA My Account for Individuals, you can choose to file your objection online by following the two following steps: 

Step 1: select the “File a Formal Dispute” option on your personal CRA portal, where you can fill the appropriate information relating to your objection; 

Step 2: once your formal dispute is recorded, the second step is to use the “Submit Documents” option to upload an extension request to accompany your objection.  

DETAILED INSTRUCTIONS CAN BE FOUND HERE

Option 2: Alternatively, if you have not subscribed to CRA My Account for Individuals, you may choose to submit your objection by mail or fax. 

Step 1: To do so, fill out a notice of objection and an extension request. Pre-populated forms and detailed instructions can be found here.  

Step 2: Once the forms are printed and filled, you can choose to mail or fax them to the following address or fax numbers. We recommend you send your materials by registered mail to ensure they are received: 

Appeals Intake Centre 
Chief of Appeals 
Appeals Intake Centre 
1050 Notre Dame Avenue 
Sudbury ON, P3A 5C1 

Fax numbers: 
705-670-6649 or 1-866-443-4955 (NL to ON) 

 

***Update: February 29, 2024***

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Special Guest Speaker : March 6th, 2024 @ AGM

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UCTE - Regional Vice President Ontario

Nicolas Angers

angersn@psac-afpc.com

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***Payroll Reminder Message to members of Local 00217 Hamilton - UCTE/PSAC***

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Please be diligent in reviewing your pay/paystub.  The information for your annual salary is in your new collective agreements.  If you suspect your pay is not correct, payroll deductions are missing or incorrect. 

Step One is to inform your supervisor so they may give you guidance on how to proceed further.

 

 

***PSAC files policy grievance for issues with Canada Life***

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PSAC has filed a policy grievance against Treasury Board for the poor management of the transfer of the Public Service Health Care Plan (PSHCP) to Canada Life, which has impacted tens of thousands of federal public service workers covered by the plan. We are also in the process of following suit against employers in other affected bargaining units. The policy grievance argues that the employer's actions violated the collective agreement by implementing the transition without regard for the rights of all members to a functioning health care plan, and did so in a manner that violated the human rights of workers based on the grounds of disability, family status, age, sex, and/or or gender identity and expression.  

On July 1, 2023, the federal government transferred the administration of the PSHCP from Sun Life to Canada Life for over 1.5 million current and former public service workers and their families. Almost immediately, members began dealing with significant issues, including the interruption of their benefits, the inability to contact the insurer, long delays and arbitrary and wrongful denial of claims.  

Some members had to make the difficult decision to stop their medical treatments because they could not afford to pay out of pocket and wait for the eventual reimbursement by Canada Life. An apology from Canada Life or the federal government is not enough to redress the harm already caused, as well as the harm members continue to experience. 

PSAC is seeking remedies for the problems the transition caused, including but not limited to the following: 

• a declaration that the employer has violated the collective agreement;

• an order that the employer compensate members for all harms experienced since the transition to Canada Life, including:  

  • general damages for all employees for the stress, aggravation, and pain and suffering they experienced;  

  • damages for impacts to those who experienced financial losses; 

  • damages under the Canadian Human Rights Act for adverse effects experienced on the basis of prohibited grounds. 

How your union can help 

PSHCP Appeal Process 

If you have experienced issues with coverage or your claim has been denied by Canada Life, follow the PSHCP appeal process. You can find more details about the process through the Plan’s administration authority. Any issues related to the denial of a claim or coverage under the Plan, or if you received a lesser reimbursement than expected should be appealed, not grieved.  If you grieve these issues, it will take substantially longer to resolve. Please see the FAQ link below and/or contact your steward, a member of your union local executive, or your component labour relations officer if you have questions about whether your situation should be appealed or grieved. 

In Limited Situations You May Be Able to File a Grievance 

If you experienced delays or other hardship because of Canada Life’s administration of your claim, you may be able to file a grievance against the employer. A grievance may be appropriate where Canada Life failed to process a claim or provide reimbursement within a reasonable time or where you were unable to contact them in a reasonable time, leading to financial hardship, delayed treatment, or some other adverse impact on you. The grievance process takes substantially longer than the appeals process and a grievance on a denial of benefits will be rejected and you will be directed to appeal.  

If you are unsure whether your situation should be grieved or appealed, please consult our Canada Life FAQ for more information.  

If you have experienced delays because of Canada Life’s administration of your claim and you would like to file an individual grievance, please contact your steward, a member of your union local executive, or your component labour relations officer to discuss it.  Click here to find out how to contact your union. 

If you are a retiree, you can appeal through the PSHCP appeal process, but the grievance process is not available to you unless the problems you experienced occurred while you were an employee.  The National Association of Federal Retirees represents retirees under the PSHCP and any questions about recourse should be addressed to them.  

You also can write to your Member of Parliament to pressure Treasury Board President Anita Anand and Minister of Public Services and Procurement Canada Yves Duclos to take accountability for improving health benefits for PSAC members. We have prepared a pre-written letter for members and encourage everyone to send one. 

 

 

***Public Service Dental Care Plan: Dates set for arbitration***

 

PSAC and Treasury Board are heading to arbitration after negotiations to improve the Public Service Dental Care Plan (PSDCP) for over 185,000 federal public service workers have broken down.  

Arbitration dates have been set for June 14-15, 2024. We are hoping to resolve all outstanding proposals in arbitration, and we are confident that gains can be made at this stage of the process.  

Negotiations began in June, following a labour board decision that found Treasury Board was acting in bad faith by refusing to come to the table. Since then, Treasury Board has continued to show unwillingness to negotiate fair and reasonable updates to the PSDCP.  

Read the full list of proposals submitted by PSAC, based on input from members through an online survey.   

We remain committed to making several improvements to the plan including:  

• Increasing the annual maximum from $2,500  

• Increasing the co-insurance rates so that you pay less out of pocket   

• Increasing the lifetime orthodontic maximum from $2,500  

• Eliminating the deductible  

• Getting reimbursement at the current year’s fee guide, rather than the previous year.  

The dental plan is negotiated for PSAC members employed by the federal government, many of its agencies, and other employers. Refer to the full list of employers covered by this plan to confirm whether it applies to you.    

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Next Meetings:

Annual General Meeting - aka AGM

Wednesday, March 6, 2024

Time : 12 to 1pm (1hr)

Location : CMAT Rm 205

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Elections:

Wednesday, April 3, 2024

Time : 12 to 1pm (1hr)

Location : TBD

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PSAC Ontario Regional Office - Toronto

90 Eglinton Avenue East 
Suite 608
Toronto ON M4P 2Y3
Email:  PSAC_Toronto_Mail@psac-afpc.com

Telephone:
(416) 485-3558
1-800-354-9086

Fax:
(416) 485-8607

Office Hours: 9:00 am to 5:00 pm, Monday to Friday

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Any questions send to local00217@gmail.com

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