OTTAWA, April 17, 2024 – Following numerous promising announcements around affordability such as pharmacare and housing, the 2024 Federal Budget offered mostly cuts for the public service. The Professional Institute of the Public Service of Canada is concerned this will threaten the quality and accessibility of services – calling instead for strategic investments.

"Public servants are the lifeline of millions of Canadians – particularly our most vulnerable populations," warned PIPSC Economist Ryan Campbell. “Choosing cuts over strengthening the public service is a missed opportunity.”

Strategic Government Investment vs. Cuts

Budget 2024 confirmed that the government will achieve savings through the natural attrition of public service jobs, as outlined in the main estimates released in February. This represents approximately 5,000 full-time equivalent positions over the next 4 years.

“Make no mistake – cuts by attrition are still cuts. When you’re freezing budgets, you’re asking departments to do more, with less,” said Campbell. 

In the wake of the pandemic, the need for hiring was clear. But this hiring came after years of severe cuts that had placed considerable strain on the ability of the public service to meet the demands of a growing population. 

"It’s crucial to understand that slowing growth and making cuts are different strategies," stated Campbell. "Over the years, growth in the public service has aligned closely with the growth of the population, ensuring that services could continue to meet needs effectively."

Outsourcing Costs and the Need for In-House Investment

While PIPSC appreciates efforts to enforce higher standards of procurement, this budget fails to address the government's over-reliance on outsourcing. This means lower quality and more expensive services, as well as less transparency, less accountability, and the loss of institutional knowledge and skills in the public service.

"A shadow public service of consultants and temporary staff operating alongside the government workforce has been less effective and more expensive, offering a poor return on investment for Canadian taxpayers," Campbell added. “This trend must be reversed. Instead, invest in our public service to deliver essential services more efficiently and equitably.”

Reducing outsourcing would deliver immediate savings, and strengthen the fabric of our public sector – making it more resilient, self-reliant, and better equipped to serve the public interest.

Overlooking Phoenix

8 years after its introduction, 30% of employees are still reporting pay errors due to Phoenix. It is troubling that this budget promises the bare minimum – the funding outlined is only enough to maintain current activities on the file.

With pay problems on the rise, maintaining the status quo is clearly not good enough. As long as public service workers continue to face damages, the government must continue to provide compensation and accommodations. Public services are essential, and so are the workers who deliver them – they deserve to be paid properly, now.

Looking Forward

We are interested in digging deeper into some positives coming out of the budget, such as investments in the civilian workforce at DND and research, policies around tax fairness, as well as cementing the “right to disconnect” in the federal labour code.

Nevertheless, PIPSC remains steadfast in our commitment to advocate for policies that support robust, reliable, and fair public services. We call on the government to support initiatives that focus on strategic investments rather than reductions, ensuring the public service can continue to deliver exceptional services to Canadians.

PIPSC represents over 75,000 public-sector professionals across the country, most of them employed by the federal government. Follow us on Facebook, on X (formerly known as Twitter) and on Instagram. 

-30-

For more information call:
Johanne Fillion: 613-883-4900
jfillion@pipsc.ca

PIPSC is pleased to announce that a settlement has been reached in a class action involving employees who were required to pay higher transfer amounts because of a change in actuarial assumptions when they transferred from the Ontario Public Service to the Canada Revenue Agency as part of the Ontario Sales Tax Administration Reform Process.

A notice approved by the Court, describing the next steps in the process, is available below. If you are affected by this class action, you should be contacted individually by the Pension Centre with the materials linked below. If you do not receive materials from the Pension Centre by May 15, 2024, and believe that you are a member of this class, please contact pensiontransferclassaction@ravenlaw.com.

OSTAR Phase I Notice

OSTAR Phase I Participation form

We have some exciting news that is going to revolutionize the way we run PIPSC elections. In spring 2024, we will be launching a new election platform! 

The new platform will modernize the user experience, meaning members will no longer need a ballot key to vote, and election results will be easy to access. We will be testing the platform for a group election this spring, and the entire membership will get the opportunity to use the platform to vote in the upcoming National Election. 

Simply by logging in on this new platform, members will be able to see elections they are eligible to vote in, as well as past elections and election results. The platform is also highly secure, requiring 2-factor authentication to protect the integrity of PIPSC elections. And thanks to the platform being cloud-based, members will be able to vote from anywhere in the world.

Another benefit of the new election platform is that members will automatically receive an email through the platform when an election is called. They will also receive reminders when voting is opened or closed, and when election results are available. 

To ensure that all members are set up on the new platform before the National Elections in November 2024, we will be onboarding members in waves starting this spring. Members should keep an eye out for an email from the election platform prompting them to log in to the platform, create a password, and set up 2-factor authentication. Then, all they need to do is wait for an email letting them know that voting is open. 

Following the recent unnecessary loss of life of Gazans trying to access life-saving food aid, PIPSC’s Human Rights and Diversity Committee is reiterating our call for an immediate and permanent ceasefire in Israel and Palestine.

The International Court of Justice recently ordered Israel to prevent genocide. In light of this, PIPSC’s Human Rights and Diversity Committee urges Canada to take a firm stance against arms exports to Israel, to demand the immediate withdrawal of Israeli troops from Rafah City – which was meant to be a safe refuge for civilians – the immediate and unconditional release of all hostages, and full respect of international humanitarian law.

The committee welcomes the announcement that Canada will restore funding to the United Nations Relief and Works Agency for Palestine (UNRWA), but urges Canada to do more.

The committee also wants to acknowledge Canada's recent support of the amended NDP motion on Palestinian statehood. This vote signifies a significant step toward advancing peace and justice in the Middle East.

As we mark this milestone, let us renew our commitment to supporting efforts for a just and sustainable peace, working collaboratively with international partners to forge a brighter future for all affected by this enduring conflict.

Finally, the Committee recognizes the distress that Jewish and Muslim members in particular could be facing in the midst of discussions around this topic. We also encourage affected members to contact their Employee and Family Assistance Program. We are continuing to assess the best ways to support the elimination of anti-Semitism and Islamophobia in the workplace.

Canada Life's takeover of the updated Public Service Health Care Plan (PSHCP) is not what our members deserve.  PIPSC, our colleagues from other unions and the retiree associations have been holding stakeholders accountable for their failings  - including via a Parliamentary inquiry.  While customer service metrics show significant improvements, issues remain - including excessive turnaround times for prior authorisation and atrocious customer service when dealing with MSH International - the subcontractor for out-of-country claims.

We continue to explore all avenues to hold the employer responsible for its failings.  Some of our partner unions are turning to policy grievances.  Given the current framework for Pensions and Benefits are outside the normal grievance process, this approach presents its own challenges.  While we continue to explore the best strategies to ensure the PSHCP delivers, rest assured PIPSC is doing everything in its power to make your health plan work as promised.  We will continue to provide updates on our website.

Members with questions about their plan are invited to review our members' guide to the PSHCP - which also explains how all PIPSC members can benefit from 90 percent drug coverage through our pharmacy partner Mednow, as well as access to various telehealth options at no cost. Some restrictions apply.  If you are not able to resolve your concerns with Canada Life, please contact us at pensionsbenefits@pipsc.ca. Our Pensions and Benefits team can provide guidance. 

OTTAWA, February 27, 2024 — Unions representing more than 260,000 federal public sector workers are calling on the government to negotiate ongoing damages for workers who continue to be impacted by the Phoenix pay system disaster. 

The Public Service Alliance of Canada (PSAC), The Professional Institute of the Public Service of Canada (PIPSC) and the Canadian Association of Professional Employees (CAPE) have formally requested that Treasury Board begin negotiating an extension of the Phoenix general damages agreements and the severe damages claims process to compensate workers until they are paid properly and on time – every time.

Federal unions negotiated Phoenix general damages settlements in 2019 and 2020, but years later, there’s still no end in sight for federal workers who are still experiencing pay issues paycheque after paycheque.

“As we mark the 8^th year of the disastrous Phoenix pay system, tens of thousands of workers continue to endure endless pay problems,” said PSAC National President Chris Aylward. “Workers deserve to be compensated for the pain and suffering they still face at the hands of a broken pay system.”

While all Canadians continue to deal with the rising cost of living, more than 380,000 federal workers can’t be sure they’ll be able to pay their rent, cover their mortgage or pay for groceries due to significant errors on their paycheques.

There are currently 444,000 transactions ready to be processed by the Public Service Pay Centre with a growing Phoenix backlog that is leading to frustration and hardship for workers. “Public servants – like all Canadians – deserve to be paid accurately and on time,” declares PIPSC President Jennifer Carr. “Despite promises to ‘fix Phoenix’, eight years later the federal government can only meet its own service standards 25% of the time, not even close to their own 95% target. That is completely unacceptable,” continues Carr. Whether workers are overpaid, underpaid or not paid at all, Phoenix problems continue to seriously impact federal workers paid by the broken system.  

Each pay period brings more uncertainty, with many putting off advancing their career or retiring from the public service – decisions that should be milestones, but now keep workers up at night. A growing backlog of pay issues and wait times to fix pay issues also weighs on the mental health of workers and has damaging tax implications, with pay problems following them long after they’ve changed jobs, left the public service or retired.

“The Phoenix Pay system marks one of the most expensive and harmful pay system modernization failures in the history of the Canadian federal government,” said Nathan Prier, President of CAPE. “Federal public sector workers deserve better than having their contracts broken on a biweekly basis for eight years. We will not rest until all workers are fully compensated and this issue is resolved once and for all.”

The government must also focus on hiring more compensation advisors to stabilize the current pay system and eliminate the ballooning backlog of pay issues.

Instead, this government continues to waste its resources aggressively clawing back Phoenix overpayments from workers as they race against the clock to recover before the six-year limitation period for overpayment recoveries expires, after which they have no legal right to recover the funds. 

– 30 –  

Media contacts: 

Public Service Alliance of Canada (PSAC)
PSAC Media Relations 
media@psac-afpc.com 
613-714-6610 

Professional Institute of the Public Service of Canada (PIPSC)
PIPSC Media Relations
jfillion@pipsc.ca
613-883-4900

Canadian Association of Professional Employees (CAPE)
Katia Thériault
Director of Communications and Public Affairs 
Ktheriault@acep-cape.ca
819-431-1015 

***** 

About PSAC 

The Public Service Alliance of Canada is Canada’s largest federal public service union, representing nearly 230,000 workers in every province and territory in Canada, including more than 165,000 federal public service workers. 

 
About PIPSC 

The Professional Institute of the Public Service of Canada (PIPSC) was founded in 1920. With over 75,000 members, the Institute is the largest union in Canada representing scientists and professionals employed at the federal and some provincial and territorial levels of government.
 

About CAPE 

With more than 25,000 members, the Canadian Association of Professional Employees is one of the largest federal public sector unions in Canada, dedicated to advocating on behalf of federal employees in the Economics and Social Science Services (EC) and Translation (TR) groups, as well as employees of the Library of Parliament (LoP), the Office of the Parliamentary Budget Officer (OPBO) and civilian members of the RCMP (ESS and TRL).

On this International Women’s Day, we’re making space for an honest discussion about women’s mentorship and empowerment. 

Join PIPSC President Jennifer Carr, NDP Vice-President Laurie Antonin, and others as we talk about the barriers women face in the workplace and how we can empower each other to overcome them together.

When: Friday, March 8 at 12:00 PM ET

Where: Zoom

Register Now

Women — especially diverse women — are under-represented at all levels of leadership and in certain sectors of employment. What are unions doing to address this issue, and how successful have our strategies been? Join the discussion as we come together to celebrate the gains we’ve made and our vision for the future of women in the workplace. 

If you have any questions, please email us at bettertogether@pipsc.ca.

We look forward to seeing you there!

We have received notification of a significant cybersecurity incident affecting MSH International’s systems, a subcontractor for Canada Life responsible for managing the Public Service Health Care Plan. MSH handles emergency travel and benefits for federal public servants and their families traveling abroad or stationed overseas.

The Treasury Board is currently investigating the extent of the breach in collaboration with MSH and Canada Life. We are actively monitoring the situation and awaiting the government's response to address our members’ concerns and outline the necessary measures to safeguard their privacy and security.

This unfortunate development follows the challenging transition to Canada Life last summer, which resulted in numerous issues for members attempting to access their health insurance. It also bears a resemblance to the ongoing struggles with the beleaguered Phoenix pay system, which remains unresolved almost eight years after its troubled launch.

At present, MSH is unable to process claims or requests, and their client portal is inaccessible. However, members can still contact Canada Life by phone at 1-833-774-2700 within North America (toll-free) or 1-365-337-7427 outside of North America (collect-call).