PIPSC President Debi Daviau’s comments on today’s technical briefing regarding the Phoenix Pay system and news suggesting that performance payments may have been awarded to department executives overseeing the system

Once again, PIPSC members come out of this latest technical briefing without the sense that a fix to the Phoenix system is coming soon.

While there is much tinkering around the edges, no global solution is yet in sight. And while mention of a “steady state” continues to be a favourite talking point (for example, with maternity and parental leave requests), there has been no indication that the funds would be made available to ensure we have a timely, long-term fix to all issues. Many disability leave requests, which affect the most vulnerable federal employees, have yet to be fixed.

Deputy Minister Lemay also remarked that “the way we’re organizing our work today is not our long-term approach.”

In fact, this is precisely why we recommended that a contingency fund to fix Phoenix be included in the recent federal budget and that further training be provided to government IT workers. The government should not be forever dependent on IBM or other consultants to fix its Phoenix problems. This would enable a fix that could be maintained by our complement of public servant IT employees. We see no sign of this kind of long-term planning.

We will be verifying with PIPSC members who contacted us for help, especially those on maternity and parental leave, to make sure their cases have indeed been resolved.

Finally, the possibility that executives overseeing the Phoenix pay system may have been awarded performance pay is deeply upsetting and, if true, would be a disgraceful misuse of Canadians’ taxes – especially given the enormous number of public servants who we know continue to be deprived of money they are owed, and after the government stated in December that bonuses for executives dealing with Phoenix were under review.

For Immediate Release

Ottawa, March 22, 2017 – The federal government announcement that it is investing $529.9 million more to crack down on tax evasion and avoidance by hiring new auditors is good news for tax fairness, but the government’s much-heralded “innovation” budget is lacking in needed, strategic investments in more science staff, says the Professional Institute of the Public Service of Canada (PIPSC). What’s more, the government continues to be slow in reducing the billions of dollars currently spent on outsourced services, and has offered no new money to resolve ongoing Phoenix Pay problems, despite union calls to do so.

“The new investments in the CRA will help make sure billionaires and corporations pay their fair share,” said PIPSC President Debi Daviau. “But after years of job and program cuts under the Harper government, at least 1,500 science jobs still need to be reinstated to maintain adequate service levels and restore important expertise.

“Reducing the approximately $12 billion annually now spent on outsourced public services would simultaneously strengthen public services and cut down on corporate profits made at taxpayers’ expense,” added Daviau. “The government earlier promised to shrink expenses on outside consultants to 2005-06 levels within 10 years. We feel this can – and should – be done within its current mandate.”

“We are of course disappointed the government has chosen not to invest further in fixing the Phoenix Pay problem once and for all,” concluded Daviau, “surely one of the darkest – and longest – chapters in mismanagement of the federal public service. The silence on Phoenix is deafening.”

PIPSC represents some 55,000 public-sector scientists and other professionals across the country, most of them employed by the federal government.

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For further information:

Johanne Fillion (613) 228-6310 ext 2303 (office) or (613) 883-4900 (cell.)
e-mail.

On December 1, 2016, I wrote to Minister of Finance Bill Morneau to express our deep concerns with the introduction of Bill C-27, which paves the way for federally regulated employers to convert defined benefit pension plans to so-called target benefit plans (TBPs) and, in the process, shift the risks for a secure retirement from employers to employees. While this legislation does not affect the vast majority of our members, the trend and the threat it poses for the future is clear – to all of us, and to all Canadian workers hoping to ensure a secure retirement.

Minister Morneau’s reply arrived last week. After sharing the Liberal government’s recent record in rolling back the eligibility age for Old Age Security from 67 to 65 and expanding the Canada Pension Plan, he characterized TBPs as “a new, voluntary, sustainable and flexible pension option.” The Minister then added:

“Our Government is always open to hearing the views of stakeholders on our commitments and actions. I have reviewed your concerns with certain aspects of the legislation and taken note of the views expressed at recent meetings held by Department of Finance Canada officials with a number of unions for Bill C-27. We are listening, and before this legislation proceeds any further, I want to ensure that all of your views are fully considered. To that end, I would invite a written submission outlining your concerns and possible solutions. I would appreciate if your submissions could be received by May 15, 2017.”

Placing the onus for retirement security on employees rather than employers and calling it “voluntary,” “sustainable” and “flexible” is the very opposite of “new” or “optional,” let alone secure retirement planning. PIPSC members can be certain we will be sending a submission to the Minister outlining our concerns in more detail.

In the meantime, I encourage all members to express their opposition to this bill by calling the Minister’s office at (613) 992-1377 and voicing your concerns.

Better Together!

Debi Daviau

President