That, in the opinion of the House, the government committed a gross error in judgement when it operationalized the previous Conservative government’s Phoenix pay system over the clear objections of both the affected unions and departmental staff, and that the House call on the government to: (a) pay all employees correctly and on time, every time, for the work they do; (b) exempt those who have been overpaid by Phoenix from having to pay back the ‘gross’ amount, despite actually receiving a substantially lower ‘net’ amount; (c) compensate those in the public service who have experienced damages from Phoenix, both financial and otherwise; and (d) publicly apologize to all of those who have endured hardship as a result of the government's error.
She said: Mr. Speaker, I am honoured to be sharing my speaking time with my colleague from , to talk about a problem that has been plaguing hundreds of thousands of public service employees for months now. This is a colossal administrative scandal and an unprecedented financial and social drain.
The government committed an error in judgment when it green-lighted the costly second phase of the Phoenix pay system despite clear objections from the unions and affected departmental staff. The NDP is moving this motion to secure the future and heal the past.
First, we call on the government to:
(a) pay all employees correctly and on time, every time, for the work they do;
It is not normal for employees who work all week, some of them for more than 40 hours, and for contract workers to not be paid properly and in full for the hours they worked.
I worked at a convenience store when I was a student. I have fond memories of those days. Whether the store was busy or not so busy, I always got paid for the number of hours I worked.
It is unacceptable that we have to move a motion in the House to ask that federal public servants be properly compensated.
To come back to our motion, secondly, we are calling on the government to:
(b) exempt those who have been overpaid by Phoenix from having to pay back the ‘gross’ amount, despite actually receiving a substantially lower ‘net’ amount;
Unfortunately, the long and the short of it is that many people, including regular employees, contract workers, and even retirees keep getting payments they should not be, or overpayments. Some have received upwards of $50,000. That boggles the mind.
For example, a worker receiving a gross monthly overpayment of $1,000 will end up with $600 in their bank account after all the deductions have come off. We do not want that employee to be required to pay back $1,000 because that is not what ended up in the account. We want those who have been overpaid to have all the time and latitude they need to pay back only the net amount.
Third, we are calling on the government to:
(c) compensate those in the public service who have experienced damages from Phoenix, both financial and otherwise;
It is unfortunate, because many people have been and continue to be impacted because of the problems with the Phoenix pay system. We, as members of Parliament, are all being paid. We all had careers in the past and we will still have one when we are no longer MPs. When we receive our pay, it has to cover certain expenses. We have to pay for expenses related to our cars or our homes, and we have to buy food for our children.
When people do not receive the pay they were expecting for the hours worked, and they have to take an advance from their credit card, skip mortgage payments, and get into debt, they are seriously impacted both psychologically and financially.
We can name a number of people who now have a bad credit score. They have lost their sense of pride.
Blaming the former Conservative government no longer works. The Auditor General's report is clear: the current government failed to do what was required to fix the Phoenix pay system. I am not the one saying it. Public Services and Procurement Canada as well as Treasury Board did not recognize early enough the scope and severity of the problem with Phoenix.
That is why we are asking the government to accept responsibility for its poor management of the situation and to publicly apologize to all of those people who have endured hardship as a result of this situation. Unfortunately, there are many of them. Today, more than 193,000 public servants are affected by the government's failure to resolve the Phoenix pay system problems.
In my riding of Jonquière, no less than two-thirds of public servants have been impacted by the Phoenix fiasco. I could spend all week sharing the stories that I have unfortunately heard, or have had the misfortune of hearing, in my office. I was able to spend time with these people in order to understand their situations, and today I am proud to be their voice and I hope to bring about change.
One example is a young contractor who came to see me and who is owed more than $8,000. This job was perfect for him, since he could continue his studies and work at the same time, but the debt started piling up when he did not receive his pay. He has been owed $8,000 for two years, to the day. Although this young man should have had access to EI, since he is a contractor, the Phoenix pay system messed up his work hours and EI asked him to pay back the money. This whole situation is like quicksand, and, at the end of the day, workers are the ones paying the price. This is just one of so many examples.
I also heard from civilian employees on the military base who do not want to join the summer team because they cannot get paid on time. They have to talk to their employers to ask questions, and it never ends. These people go without income all summer.
I also had the opportunity to meet a woman while I was at the hair salon. She has been a victim of the Phoenix pay system for the past two years. She lives alone, her husband is deceased, so she is alone to pay the bills. She has no idea when she will get her money and be able to pay them.
The government is unable to tell these contract workers when they will be paid for their hours of work. When people have to accumulate credit card debt and are unable to pay their mortgage, it has a major impact on their family, the people around them and their financial situation.
The government promised public servants a good pay system that would allow them to manage their own requests through the wonders of technology. Now, it is threatening those workers to try to force them to pay back the costs associated with problems for which they are not responsible by a certain date. Workers are once again getting the short end of the stick.
For months, public servants have not been receiving their proper salaries, retirement pensions, and overtime payments because of Phoenix. Thousands of government employees are living with the financial stress of not being paid properly. Some workers are even turning down promotions because they know that they will not receive the pay increase associated with their additional duties. The worst part is that they do not even know when they will get paid. We are all worse off because we are depriving ourselves of high quality workers.
Thousands of government employees are living with the financial stress of not being paid properly, but that did not stop the senior executives responsible for overseeing Phoenix from receiving nearly $5 million in bonuses and performance pay over the past few years. That is ridiculous, when we know that many families are having trouble putting food on the table. The Liberal government continues to defend these executives who are receiving public funds when they did not fulfill their obligation to ensure that workers are paid for their hours of work each week.
In closing, it is high time that the Liberals give us a date by which they will fix this financial and human disaster.
:
Mr. Speaker, the member of Parliament for gave a very eloquent speech. I will say that I was very disturbed by the questioning coming from the Liberal side, but I will come back to that in a moment.
I will start, as I think all members of Parliament need to start, by paying tribute to the incredible diligence and dedication of the public servants who run our government and provide services to our citizens right across the length and breadth of this land. They are incredibly dedicated. They are people who give their lives to public service. In the national capital region, in my riding of New Westminster—Burnaby, in every part of the country, they make sure that citizens receive good, quality services. Public servants are an incredibly dedicated group.
We are now facing a situation in this country that has no parallel in any other industrialized country. We see a situation where public servants, working with such dedication, do not receive the paycheque they so richly deserve at the end of the week all because of government mismanagement. It is hard to find a parallel. It is only in terms of warfare or insurrection that public servants end up in the situation such as we have here. We have a government that simply refuses to take responsibility and refuses to take the important measures that would actually lead to fixing the system.
On February 28, 2016, the Liberals had been in power for a number of months, and they made the decision to operationalize the Phoenix system. Now, we just heard a very disturbing question from a Liberal MP trying to say that it was not their fault. I find that deplorable. The heart of our democratic system is governments taking responsibility for the decisions they make. Yes, of course, the Conservatives should not have started down the path of putting Phoenix in place, but the Liberals had the choice to make, and they chose on February 28, 2016, after months in power, to operationalize Phoenix.
What should they have done? As my colleague the member for just pointed out, people in the public service had pointed out the problems that would arise with Phoenix, but the Liberals ignored them. It would have taken a 30-second Google search for them to find out what had happened in Queensland with a similar system.
In Queensland, they did not have the benefit of a debacle occurring with a similar system before, and they moved forward with IBM and put in place a system that was catastrophic. Within weeks they realized that public servants in the Queensland area were not getting their paycheques. Within weeks the Queensland government realized it had to take action. Paradoxically, for a system that was supposed to save them money, they ended up paying over $1.2 billion to fix the boondoggle that was the Phoenix-like system in Queensland.
We should have learned from that error. We should have had maybe one Liberal MP just do a Google search and find out if they should have put the system in place. The Liberals had been in power for months, and they had this important decision to make: move forward with the Phoenix system on February 28, 2016, or take a step back, the way so many public servants requested they do, not put it in place and save the public money, and save the public servants the heartache of working as hard as they do and yet not receiving a paycheque at the end.
The Liberals made that choice. In this democratic system, they are the government. They made the decision. They put Phoenix in place, and today we are saying that they have to fix it. They have to fix the problems with Phoenix.
What has the impact been? The Liberals could have avoided it. They could have learned from the Queensland example. They could have rapidly moved once it became evident that Phoenix was a debacle, that public servants were not getting their paycheques, that there were catastrophic personal and family impacts for the bad decision they made on February 28, 2016.
In the Queensland case, they were able to fix it in four months with the investment of money. Here with Phoenix, it is two years later and the system has not been fixed. The government does not even seem interested in fixing it. The Liberals love to point fingers at the Conservatives. I would too, if the Conservatives were at fault. The Liberals made that operational decision, and the Liberals have to fix what they broke.
What has this meant? I have had public servants visit me in my office in New Westminster—Burnaby with tears in their eyes. They are so dedicated to the country. They believe so strongly in public service. They want to give to the population and serve our citizens, yet they are going deeper and deeper into debt because they are not getting a paycheque. Some have lost their homes, as we know. There is the embarrassment of public servants who are working full time going into a grocery store and not being able to buy food for their children because their credit cards are maxed out. The government has done nothing to fix it.
In each one of those cases, and there are thousands of these tragic cases, the emotional stress takes a toll on the family and on the individual. It is not a little thing to work full time and not receive a paycheque. Then to compound this, when there are occasional overpayments, the Liberal government made the decision to start doing what most loan sharks do across the country. It is not a laughing matter. When a public servant receives a paycheque that is a little higher than it should be, instead of asking to be paid back for the amount that the public servant actually received, the Liberal government has vastly inflated that amount. Yes, in some cases the public servant was overpaid, but is now facing the stress of having to pay back far more money than was actually received. That again was a Liberal decision. That again is something that is addressed in our motion. We say very strongly that this kind of activity has to stop.
It is not just the toll on the individual; it is also the toll on communities. As we know, cities like Prince Albert have written to the government saying that it is not only the toll on families and public servants but the toll on the whole community. Businesses are impacted because public servants are not getting their money. Local businesses are struggling now because of the government's refusal to fix the system. The impact goes all the way down the line.
I would encourage people who are listening today to contact their city councillors and have them write, as Prince Albert did, to the federal government and say that it has to fix this system. The impact has been tragic on so many Canadians who are of good faith, hard-working, and go to work every day and want to serve the country. All they ask for in return is a fair paycheque so they can take care of their family, pay their rent, and put food on the table. That is not asking too much.
For two years now this has festered, with the government refusing to take the actions that the Queensland government did. It fixed it in 120 days, albeit with a significant investment. However, as the Auditor General has mentioned, the Liberal government failed public servants in this country. Yes, that bad decision will cost us $1 billion or possibly more, but it needs to be fixed and those public servants need to be compensated.
Liberal MPs will have to make a decision when this comes to a vote. I am encouraging public servants across the country, who work so hard, to take time to phone or email their local member of Parliament and tell their MP to vote yes on this motion. We cannot have this become a partisan issue, where Liberals say, “We are not going to take responsibility, so we are not going to vote for the motion.” We have to fix this system. We have to respect our public servants. We have to respect the communities they serve as well. We have to respect them, and that means adopting this motion this week.
That means every member of Parliament will have to make a choice. Do they choose politics or do they choose to support the hard-working public servants who are the backbone of public administration in Canada?
:
Mr. Speaker, I am pleased to participate in the debate on the motion put forward in the name of the hon. member for . I thank the hon. member for her initiative, which gives us all an opportunity to discuss this very important issue with respect to the problems with the Phoenix pay system and their impact on the everyday lives of hard-working public servants and their families.
I have said this before and I will say this again: It is completely unacceptable that our hard-working public servants are not being paid properly. Every day, I am troubled by stories of hardship, anxiety, and stress caused by the failings of the pay system. I hear from and speak regularly with affected public servants from across the country. I read their stories in the news, and I hear regularly from unions about the personal toll that this is taking.
I hear about the family who has a hard time making ends meet during a maternity leave, of the parent who had to tighten his belt during the holidays to buy gifts for his children, and of the young professional who is worried about accepting a promotion in case she will not get a paycheque. These stories remind me daily of the impact on the lives of Canadians, and they are heartbreaking.
I want to assure every public servant and their families that our government is doing everything necessary to resolve this intolerable situation. We recognize that we have lost their trust and realize that they have been more than patient.
Since I have been named the Minister of Public Services and Procurement, I have put a renewed focus on clear communication with employees, in a genuine effort to be open and transparent. As we work toward stabilizing the system and resolving outstanding transactions, it is important for public servants to understand the nature of the issues, the work being done to address them, and, most importantly, the support that is available when experiencing Phoenix-related pay issues.
I will take this moment to call on public servants who are still experiencing pay issues to contact their manager directly to discuss the situation. Managers should be the first point of contact when experiencing Phoenix pay issues.
We know that the strain of pay issues is also being felt by the numerous public servants working hard to resolve this issue. I want to acknowledge the employees at the pay centre in Miramichi, satellite offices, and the departments and agencies across the public service who are working hard to help their fellow public service colleagues. I deeply appreciate their tireless efforts.
Resolving employee pay issues has been the most important file on my desk since my appointment as Minister of Public Services and Procurement six months ago. The challenges are complex and numerous. The project was a long time in the making, and the problems run deep.
[Translation]
Public Services and Procurement Canada is responsible for administering the pay of more than 290,000 federal public servants in the over 100 departments and agencies that make up the federal public service.
The need to modernize the public service pay system was raised in 2008 by the Standing Committee on Government Operations and Estimates. Shortly thereafter, in 2009, the Conservatives began to make plans to transform the administration of pay services. In 2011, the Conservative government acquired the PeopleSoft pay system from IBM and decided to centralize front line pay services for the entire government in a new public service pay centre in Miramichi, New Brunswick.
The goal was to acquire a cost-effective, sustainable pay system. However, it goes without saying that this transformation was an utter failure.
An independent review conducted by Goss Gilroy in 2017 provided a detailed analysis and some 17 lessons learned in six different areas. According to the report, the project failed because the government underestimated its complexity.
Why can the government not now, in 2018, ensure that its employees are paid properly and on time?
[English]
The implementation of such a complex business transformation initiative across the entire Government of Canada was a massive undertaking that I believe history will record was set up to fail. The reality is that the Harper Conservatives botched the Phoenix pay system from the start. They chose the high-risk, cost-cutting route that has landed us in this present situation.
To put it bluntly, this project was designed to save money. It should have been focused on serving employees. As we have seen, it accomplished neither. Technology was stripped of important functionality to meet budgets and timelines. The Conservative government chose not to purchase expert training and change management support, and instead tried to handle this internally as cheaply as possible. It ended up being ineffective and insufficient.
I cannot overemphasize the extent to which the lack of proper governance oversight, business processes, technical and human resource capacity, and change management in the early stages of this initiative have contributed to getting us to where we are today. The Harper Conservative government spent $309 million to create an unproven and flawed pay system, and prematurely booked savings of $70 million per year.
The design and implementation were rushed and staff were not trained. It was so rushed that in the summer of 2015, the function of supporting retroactive transactions was postponed indeterminately. Years later, the decision to descope this feature still has a significant impact on employees accepting acting positions, and on pay advisers processing collective agreements.
There was no change management strategy in place. In fact, 700 specialized compensation staff were fired before Phoenix was launched. Many were given notice as early as April of 2014. Perhaps the former president of the Treasury Board, the hon. member for , will help us understand the decisions that were made under his watch. It seems that he made decisions about slashing the back office without understanding the full impact of what they were doing. The second report of the Auditor General, which we expect later this spring, may provide further information and insight into these decisions and their impacts.
When Phoenix was launched, the existing pay system slated for decommissioning was in poor shape and at high risk of failure. Senior officials advised that Phoenix was ready to go. Let me be clear: there was no other option. The employees responsible for delivering pay service using the old system had already been informed that their positions were cut, and many had already left.
Once launched, the Phoenix problems ran so deep that it took time to understand what was wrong and identify solutions to stabilize the system. In addition, there was a backlog of 40,000 existing employee cases that were unresolved from the previous system. To make matters worse, the learning curve associated with Phoenix was underestimated, so transactions were not processed as quickly as planned. More importantly, there was inadequate capacity. The public service no longer had enough experienced and knowledgeable pay experts in its ranks to help transition to the new system. Those 700-plus compensation advisers would have been a game changer had they not been cut by our predecessors.
How did our government respond? We opened satellite offices and hired over 200 compensation staff. These were critical first steps in helping to make some progress in reducing the backlog. We shifted resources, at the request of the union, to prioritize transactions involving parental and disability leave. As a result, those transactions have been processed on time.
However, as the 2016 tax season approached, employees were rightfully concerned with the implications of overpayment for their tax returns. The resources required to handle the overpayments and issue accurate tax slips meant that the backlog of outstanding transactions increased.
Last spring, the department shifted its attention to implementing the 21 collective agreements that our government had signed with public service unions. I should note that these agreements had been ignored by the Conservatives. When we took office, the Harper Conservatives had let all 27 public service union collective agreements expire. Some had been expired for several years. Our government made negotiating these agreements a priority, and, as we said, we have successfully negotiated 21 agreements, which will cover over 90% of represented public servants. This is a great news story, one that has been lost in the shadow of the irresponsible behaviour of the previous Harper Conservative government.
The job of implementing these collective agreements further exacerbated the strain on the pay system. Implementation added hundreds of thousands of transactions to the pay system. We had to calculate retroactive payments going back several years in some cases, and this required data to be pulled from the government's now decommissioned pay system, as well as requiring significant manual calculations. These agreements should have been dealt with much sooner. The Harper Conservatives' adversarial relationships with unions created an added pressure on the new pay system. Again, the department reassigned compensation advisers to process these agreements. The number of outstanding pay transactions continued to rise.
As the government has needed to respond to pay problems, Public Services and Procurement Canada has also been looking at the root causes. One of the major causes for pay delays was the inconsistencies between Phoenix and the patchwork of 32 HR systems in place across government. It is because pay is directly linked to human resources processes that we saw that an integrated pay and HR approach was necessary to address issues. It was also clear that one department alone could not identify or implement all the solutions. A whole-of-government approach was needed.
Addressing those challenges is front and centre in our approach. In November, the and I outlined a series of measures focused on bringing the pay system to a point of stability. Our efforts to stabilize the pay system fall into four broad areas: governance and informed decisions; improved processes and technologies; increased capacity and service; and partnership and engagement.
We know that a whole-of-government approach with strong governance and oversight is crucial. We are addressing mistakes from the past, but the solutions remain imperative today. This is why the established the working group of ministers to ensure that all ministers and deputy ministers were focused on addressing the issues of paying public servants.
We have all hands on deck. An integrated team of senior officials from my department and Treasury Board Secretariat is leading an overall effort to stabilize the pay system, both at the pay centre and across the government. A strong governance model that brings together views and realities from across the public service is supporting the work of the integrated team. It is supported by a deputy ministers oversight committee and interdepartmental working groups.
Our government is also undertaking significant initiatives that underlay the stabilizing of the Phoenix pay system and will improve payroll processing for our employees. These measures include: implementation of legislative changes to deductions and tax rates; improvements to system functionality to process and manage retroactive payments; stabilize payroll processing and HR to pay integration, among others.
We have also signed a new application manage service contract with IBM to shift to outcome-based management on key functional streams. To improve process and technology, we are addressing the root causes of human resources-to-pay system problems, especially the way Phoenix interacts with these 32 HR systems.
Our current human resources pay and finance processes and practices do not align with Phoenix, resulting in many time-consuming manual calculations and delays for employees waiting for their pay. Solving these issues means looking at how pay requests are generated in departments, the HR processes to enter, approve, and send transactions to Phoenix.
This whole-of-government approach to examine and adjust these processes and practices should have been done well before the implementation of Phoenix. The integrated team is putting in place much-needed changes in how we manage our business processes from human resources to pay. We have to ensure the pay system is aligned from start to finish, from the initial staffing action to pay request to pay receipt.
We are also redesigning the HR processes that are creating many of the pay issues employees are experiencing, such as transfers in and out, termination, and pay for acting positions. We are also looking at how work is organized so transactions can be handled more efficiently. For instance, at the pay centre, we have piloted a new approach that organizes compensation experts and support staff into pods that specialize in specific departments on transaction types. Early results are promising and suggest that this approach can help reduce our backlog.
[Translation]
There is no question that the previous government's decision to lay off 700 experienced pay advisers had massive consequences. We are rebuilding that capacity, and I want to thank the public service unions for their valuable support for our efforts. Last May, the government invested $142 million in capacity and technology. An additional $56 million in new funding is included in this year's Supplementary Estimates (C). The bulk of this funding is being used to add capacity to the pay centre and satellite offices.
We have provided a suite of measures for recruiting and retaining pay advisers to help us do the work that needs to be done. We have more than doubled the number of pay advisers since Phoenix was launched, and we continue to seek out new ways to serve our employees better.
My department has also partnered with Veterans Affairs Canada to set up new temporary pay offices to process transactions in Charlottetown and Kirkland Lake. From day one, our focus has been on helping employees, in marked contrast to the approach taken by Mr. Harper's Conservatives. That is why there will soon be 100 people in our client contact centre who will have access to Phoenix, which means they will be able to respond directly to employees calling about pay problems and provide them with more details.
Lastly, we are reinforcing our partnerships and mobilization. Opinions and feedback from the unions, departments, and experts in human resources, pay, and technology are essential for getting this right.
A union-management committee on Phoenix meets regularly to discuss problems and potential solutions. We also provide departments and organizations with monthly dashboards to better orient decision-making. We are committed to implementing lessons learned as mentioned in the Goss Gilroy and Auditor General reports so that we will never again find ourselves in this kind of situation.
[English]
We are going forward with these measures, but it will take time and concerted efforts across all departments. There is no easier quick fix for the problem to fix the system. To think otherwise would see us repeat the mistakes that got us here: poor planning, rushed analysis, and an overly narrow focus driven by savings not service to employees.
The well-documented history of this file provides the reasons why we are having this debate, but I am not offering it as an excuse. To be clear, we did not create this problem, but it is ours to fix, and we will.
As a responsible employer, we will do right by our employees. Nowhere is this better demonstrated than on the issue of training.
We may never know how many pay problems could have been avoided had the previous government made proper investments in training. I will let the former president of the Treasury Board Secretariat explain why training was not a priority for his government. Better training is a key solution moving forward, and we are also looking at other ways to help employees. One of the most vexing problems being faced is overpayments, more specifically, how repayments are being handled.
One of the particularities of federal tax law requires employees who were overpaid in one tax year to repay what they received plus tax withholdings in the following tax year. This is complicated and unfair for employees who are already under strain and stress. We are working with the unions to address the situation so we can ensure no employees are out of pocket because of pay issues.
Clearly, public service pay is complex and issues with Phoenix have only made things more difficult. Understandably, many employees want to know why we did not simply scrap Phoenix and implement a new pay system. We are drawing from lessons learned, expert advice, and are exploring longer-term options to ensure we have a sustainable, reliable, and efficient pay system.
While we explore other options, we must forge ahead on addressing the Phoenix pay system issues and backlog. Public servants deserve a modern, state-of-the-art pay system. Our immediate goal is to stabilize the pay system, but we are exploring longer-term options to ensure we have the system. We have to keep paying close to 300,000 public servants every two weeks, so we have no immediate choice but to bring Phoenix to a point of stability, where pay is being provided accurately and on time. This is my number one priority.
We will get through these pay problems, but there is much hard work ahead. As I have said many times, we will leave no stone unturned.
With regard to the motion at hand, our government supports the spirit of the motion. This being said, the motion contains elements that are factually inaccurate. The NDP claims that our government made a gross error in judgment in implementing Phoenix. This is not the case. The die was cast when the previous government sacked hundreds of compensation advisers and the previous pay system was slated for decommissioning. There was no system to go back to.
The NDP also states that the system was implemented against the advice of our employees. With all due respect, there is conclusive evidence that demonstrates officials advised in favour of moving forward with Phoenix.
:
Mr. Speaker, I will be splitting my time with the member for .
I want to thank my NDP colleague from for bringing this motion forward. It is important that we recognize that public servants across the country are still suffering as a result of the Liberal government's inability to address the mess it caused by prematurely hitting the start button on the Phoenix pay system. Like many of my colleagues in this House, my office has heard those terrible stories of families and retirees, hard-working citizens of our nation, who have had their lives severely damaged by the government's implementation of the Phoenix system before it was ready for rollout.
This is a basic issue. As the member for herself said, surely one of the basic tenets of the administration of government, which the Liberal Party claims to be good at, is that it pays its people on time for the work they do. Surely that is one of the basic things one can expect from a government, yet for year one of the government, for year two of the government, and now for year three of the government, this has been an abject failure of the party and the government. The failures of the government have played havoc with people's lives and their finances. We know now that this problem will be compounded for years to come as employees' retirement situations are left in the lurch, thanks to the mistakes being made and not rectified today.
As my colleague's motion addresses, the government was completely oblivious to the warnings sent out by departmental staff and the unions to not move forward with Phoenix. In fact, the previous Conservative government, as I mentioned in my questions and comments, held off on hitting the start button more than once because of similar warnings. After starting the system prematurely, the Liberal government continued on its clueless path, and that has now created this runaway train.
There is plenty of evidence to bear this out, much of it in the Auditor General's report released before Christmas. The Auditor General reported that it took the Liberals four months to recognize that there were serious pay problems, and it took about a year to have a better understanding of the situation. By the time the Liberals woke up to the mess they had made, the number of public servants in departments and agencies using the Miramichi pay centre who had outstanding pay requests quadrupled to more than 150,000.
Until about a year after Phoenix was launched, the government was still responding to pay problems willy-nilly as they arose. The Auditor General reported that by last summer, which was almost two years into the Liberals' mandate, the Liberals still had no road map to deal with the problems they themselves had created. The problems grew to the point that as of June 2017, unresolved errors in pay amounted to over half a billion dollars. That is half a billion dollars of unresolved pay amounts.
The evidence does not stop there. Let us look at the Liberals' ineptitude in reviewing the system-related issues with Phoenix. The system has about 200 custom programs to handle some of the 80,000 federal government pay rules and to work with departmental human resources systems to process pay. The government determined that it needed to analyze all 200 of these programs to identify the system-related sources of pay errors. However, the government started its analysis only in March 2017, more than a year after the pay problems started to be reported, and by last fall, it had analyzed only six of the 200 custom programs. That is not good enough. It is not good enough at all.
To make the situation abundantly clear, I will cite from the Auditor General's report:
Public Services and Procurement Canada and the Treasury Board of Canada Secretariat did not recognize early enough that they needed a comprehensive governance structure to resolve pay problems and develop a sustainable solution. Public Services and Procurement Canada initially responded to pay problems on its own and did not fully involve departments and agencies in developing a plan to resolve pay problems.
The Auditor General found that 16 months after the pay problems first arose, there was still no comprehensive governance structure to resolve the underlying causes of the problems. In contrast, as my hon. colleagues in the NDP have indicated, Queensland Health, a government department in the Australian state of Queensland, which had similar problems with a pay system, put in place a comprehensive governance structure within four months of the pay problems arising. There were 16 months of non-response from the current Liberal government versus a four-month response in Queensland, Australia.
The Liberals' lack of awareness and the complete lack of willingness to address this mess is not only astounding but is a complete and utter failure of competency that is hurting many thousands of public servants and their families.
Today's motion is a reminder that the Liberals are still, unfortunately for this country, floundering on this file, while public servants' lives and the lives of their families continue to be irreparably damaged. So many of them have reached out to their members of Parliament for assistance, really as a last resort. However, I must report in this place that our offices have received little by way of support from the government. In November, as my hon. colleague for has already indicated, the minister said that she was willing to help MPs' offices by providing specific resources for the Phoenix cases pouring in every week. However, after months of no response, we learned that the additional resources amount to Liberal staffers taking down details in the minister's office. That is not good enough by a long shot.
We still have these outstanding cases, and I am sure that if we were to add the cases of our NDP and Liberal colleagues on top of what my Conservative colleagues know, that number would rise significantly. There are 300 cases among the Conservative caucus alone. I daresay that it is the tip of the iceberg. It is another example of how the Liberals promised more support but failed to deliver.
Therefore, today, in the spirit of holding the government to account on this file and not letting the voices of Phoenix victims go silent in the House, I and my colleagues will be supporting this motion, and I sincerely hope that members on the government side do the same.
:
Mr. Speaker, normally I start by saying it is a pleasure to rise to talk about a bill, a subject, or a motion, but I cannot say that this time. As we have heard repeatedly, it is well into two years of the Phoenix fiasco. It is a disgrace that we are still chatting about it.
Earlier, in a question, I brought up a commitment made by the minister, which she promptly blew off, to provide resources to the constituency offices to help people with the Phoenix disaster. She waxed on eloquently, saying that employees should talk to their managers, their supervisors, or this person or that.
I want to give a personal, human example of why we need the assistance and how the government continues to let down Canadians and public servants.
There is a lady in my riding, whose name is Sebastienne Critchley. I will read part of her letter. She says that on April 2016, she took leave without pay for medical reasons. She says that her pay should have been stopped and was not, and she received an overpayment. She notified her manager, as was requested, to try to resolve the issue. She returned to work in June, reduced her hours, and continued to be paid full time. She took additional leave without pay in July 2016, and continued to be paid.
She took the right steps. She told her manager and supervisor. Nothing happened.
In October, she did not receive a paycheque. There was no notice, just no pay one day. It had been clawed back for the overpayment.
In November 2016, she went on maternity leave and had her son, Logan, who she brought in to my office. I realize Logan is probably only about a year old, but I would like to say hello. She said they had spent over three weeks in neonatal care. The time she should have spent with her son was instead spent in a hospital bed and later in the hallway of intensive care calling and trying to get a record of employment so she could receive an income during this stressful period.
She was told at the time that it would take six months. She went on and talked to a different pay adviser about the overpayment, and he suddenly stopped responding to her. She called back again, and she was told it was $7,500 that she was overpaid, and then $22,000, so approximately $30,000 in total. Then she was told she was just a category three, the lowest priority, and therefore, they would not even take a message to have someone call her back.
In February 2017, she received a T4, followed by an amended T4. Now those who have been following the Phoenix saga for so long will remember that in the emergency committee, which the Conservatives forced in July 2016 and the Liberals fought against, Conservative members brought up the T4 issue. We were told by the deputy minister to not worry because it was all in hand. Apparently, it was not all in hand.
Her letter continues, saying she began working with a compensation adviser who advised her that her overpayment was now $30,000 because Phoenix had generated additional payments of roughly $15,000, which were never actually paid to her. Because her T4 was so low, she had credits she was not able to use so she passed them over to her husband. Then her child tax credit was calculated incorrectly, because of the T4 issue.
She estimates she has spent over 200 hours attempting to resolve this, taking time away from caring for her children, having late nights, attempting to analyze the information. She has had depression and a lack of sleep. She decided to review her pay stubs. Imagine her surprise when the pay stubs she had printed off with each pay, compared to the new ones available to her, did not match.
The letter goes on and on. She says she lays awake at night fearing that she will end up repaying $30,000 when it should have been $21,000. She went on maternity leave and indicated that she wanted to pay her benefits coverage in advance with post-dated cheques. She tried, and so did her team leader and manager, to find out how much she needed to pay. She finally went on leave without that information. When she came back, she had a letter stating that if she did not pay in advance, her benefits coverage would not cover the period she was off and she needed to repay any benefits. It was several hundred dollars she did not have, because she is currently being asked to pay back approximately $9,000 she never received.
She said she went back to work September 5, and on September 26 she received an email from the agent who was actually working on the file saying he would have information for her later that week. On October 3, she followed up and there was no answer. On October 5, she received an email asking if she had reviewed her pay stubs, as if it was somehow her responsibility. On October 12, she sent another message asking for this information. Then on October 16, she said that despite numerous requests, she had no response whatsoever.
Ms. Critchley came into my office. I saw this letter and she was called to my office so that we could meet face to face and try to help her. I realize this is a disaster and there are lots of other people trying to get their pay fixed, so I took it upon myself to say that we were going to have the deputy ministers in committee and I would personally ask them to take this on.
We actually had to filibuster at committee to get the minister to show up to talk to us about Phoenix and about what the plan was going to be to fix it. We got no information out of that, but we did get a commitment from her in November that, by December 15, they would have a plan on how MPs could help victims of Phoenix. Now we have seen the minister stand up and say that MPs should not do that as it would be interfering and that they should let the managers do it. However, we have seen very clearly that the managers are not capable.
I want to continue on with Ms. Critchley's case. I went to Deputy Minister Lemay and Deputy Minister Linklater who were in charge of the Phoenix disaster, for lack of a better word. I asked them to please help this one person. There are 150,000 people affected by Phoenix. I realize I cannot help them all, but I wanted to help this one lady in my riding because she was not getting help. I went to the very top and was promised that someone would get in touch with her.
This letter has four pages of issues. She spoke to someone and the email back from the government department said that she should speak to her manager to request the overtime that she was owed. It came back to me. That was enough for me, so I went back to the deputy minister. I asked Ms. Critchley to keep me copied on all correspondence. I have them here. It is about 58 emails back and forth. We are into another year and the T4s are still incorrect, and now I have more emails.
This just goes to show that we cannot fluff it off and tell people to go to their managers. The MPs are here for a reason. They are here to help those affected by Phoenix. It is not enough to make a promise and say that they will get back to us on how they will support the MPs and then just take off, ignore emails and letters sent to the minister, and have the minister stand in the House and say it is interfering if the MP is trying to help someone else. That is disgraceful. The minister made a promise. She should keep that promise and give the resources to the members of Parliament to help their constituencies.
I want to turn to the Phoenix pay system itself. The Liberals will blame the former Conservative government. They look over the fact that they were warned in advance by the unions. We have documentation from January 2016 of the unions warning them that the pay system was not ready. Going back a few months to summer 2015, when the PSPC wanted to start Phoenix, the Conservative government said that it was not ready. We have seen the documents that said the training had not been finished, and that there were lots of errors in the pay system. The Conservative government said, “No. Go back and get it working properly.” The unions said it was not working.
At committee, the current deputy minister told us that the government had never spoken to the union, and then backtracked when presented with the facts.
Of course the Liberals are going to blame the Conservatives, even though the Liberal government knew that it was not ready and went ahead. They are going to blame the bureaucrats. We heard it today that the Liberals were told to go ahead. However, the Gartner report that went to the Treasury Board very specifically said the pay system was not ready. If we wanted a smoking gun, that is the perfect example because it went to the Treasury Board. The Liberal government said it did not pass it on to PSPC, as it did not know. However, the government knew about it.
They are going to blame the vendors like IBM and PeopleSoft.
It is very clear that the blame for the Phoenix fiasco sits with the Liberal government. The Liberals talk about the backlog, but we have documents showing that the government was told in advance, on December 15, as part of the pay process to clear the backlog. A year later, Deputy Minister Lemay writes a letter to the minister saying that the problems of Phoenix were caused by not clearing the backlog.
Also, we have documents to the government stating very clearly all the issues, such as problems with pay changes and problems where the Coast Guard said it was having a 50% failure rate in December. The Department of Fisheries and Oceans stated the same thing, very clearly, right to the government. The Liberal government knew it was there.
When the Phoenix problem started rolling out in January, which was the first wave, in February at committee we warned the government. The minister at the time said there were only 77 cases. We knew it was a lot bigger and the problem still continues.
The biggest problem is that the government will not take it seriously. The current government will not make a plan to help Canadians and to help MPs help their constituents. The government is doing nothing and that is the problem.
:
Mr. Speaker, I will be splitting my time with the member for .
I hope that the House will have the patience to indulge me for one short moment. This past week in my riding, I was honoured to spend a few moments at two stops of the Wounded Warrior Run in B.C. These folks ran all the way from Port Hardy to Victoria to talk about the challenges that so many veterans and first responders face. They are fundraising to make sure that they can provide immediate support. I deeply appreciate their dedication, their vigorousness in the run, and their commitment to the people who rush in when others are rushing out. I just want to take a moment to express my appreciation for them.
Today, we are talking about something that is really a fundamental issue. It is about paying employees on time. It is about making sure that employees get the pay they deserve for the work they do. The most important thing we must do in this debate today is recognize that our public service workers are still doing their work every day, and this is a tremendous testament to their dedication to this country. They are still showing up, often not knowing whether they are going to get paid, and whether they are going to be paid less or overpaid. I just cannot say enough about all those people. I thank them for continuing their amazing work even in this very precarious environment.
I am hearing a lot of partisanship in this place today, and we need to let go of that. We need to let go of blame. We need to get moving on action.
The reality is that people in this country are refusing position changes, promotions, or parental leave because they are afraid they will not get paid. Think about that, Mr. Speaker. There are people in this country who are making decisions on whether or not to have children. People are afraid they will not get paid if there is any change to their employment.
This system was put in place because it was meant to save $70 million a year. Now we are over $400 million in trying to fix it, and 73% of federal employees are struggling under this issue. That is close to 200,000 workers in this country. At the end of the 2017 audit period, 49,000 employees were still waiting to have pay requests processed, after having waited more than a year.
The reality on the ground is that often there is no compensation for shift work. Overtime is being recorded or paid improperly. Income tax is being calculated incorrectly. Delays are happening in pension payments. Employees are getting overpaid, underpaid, or not paid at all.
I remember one constituent telling me about working in the same position for over 20 years and suddenly that full-time job is being paid as a part-time job. This person keeps showing up and hoping that this will get fixed.
The result is incredible stress for workers and their families. We cannot leave that out of this conversation. Families are in incredibly precarious positions because they are not getting their compensation.
I am thankful that we are having this important discussion today. I want to talk about some people in my riding. This is so important, because it is a human issue. People in this country are struggling.
I want to talk about my constituent Graham. He worked with DFO for over 32 years and retired in 2016. He was expecting to be paid his severance pay, and he has been asking for it since 2016. He was told it was being processed. He called again in early 2017 and was told that he was supposed to fill out a form that he had never heard of before, and he had to fill it out online. Graham is not really comfortable working online and was very distressed that nobody had even spoken to him about this form. He finally figured it out and on May 4, 2017, with the help of a local financial adviser, he submitted the form. It is now February 2018, and Graham is told that it is still being processed. This is somebody who dedicated 32 years of his life to this job and to this country, and he is now being told that he still has to wait.
Then there is David, who worked for DFO from 2001 to 2016. David received a pay increase in 2014, but it never appeared on his pay. Now he is owed for the two-year period and still has not received that. He has called numerous times since leaving in 2016, and he has always been told that his file is being processed. He just called again last week and was advised that no one has been assigned to his file yet, nor has anyone looked at it. He is to call back in the next few weeks for yet another update.
The reality is that this is causing him and his family significant emotional and mental stress. It is important to recognize that people who are trying to do their job are being forced to not only do their job, but try to fight for their pay. I am pretty sure that this is not what they are supposed to be doing and they should not be asked to do that. David just wants to see this resolved and move on. There is over two years of money owed to him for that pay increase.
Then we have Scott, who worked for DFO for 36 years. When I started here, we knew that the Coast Guard station in Comox was going to be shut down. We fought hard not to have that happen, but unfortunately it did. After all those years of service, Scott was asked to go to Victoria and help change it over. He did all that work, and then he went back to Comox. He is now working for the Department of National Defence.
It is important to know that Scott is still being paid as an employee of DFO. That has not been fixed yet. He also earned a small pay increase, and that is still not being given to him. Recently, Scott went online to track his case and noted 26 outstanding items needing to be processed under his employee number. This is two years of dealing with this pay system. He gets zero earnings sometimes, and other times he gets huge lump payments. His child tax benefit has been hugely impacted by this, because he was overpaid and then underpaid. This is incredibly stressful for his family.
Then there is Stacey, who has a mortgage. She is a single mom supporting her family and doing the best she can. She is now two annual increment payments behind. That was a large part of how she was going to pay the mortgage, and she still has not received it. Again, she is going back and forth between the HR team and the pay centre, and being told to go back again. She is trying to find time in her busy work schedule, where she is dedicated to working for the people of this country, and she does not have time for calling, fighting this fight, and filling out numerous forms. She lives off debt, as she does not have the money to support her family because the government has not fixed this.
These are the realities on the ground. I want to make sure that people in my riding of North Island—Powell River know what our party is asking for today, which is this:
That, in the opinion of the House, the government committed a gross error in judgement when it operationalized the previous Conservative government’s Phoenix pay system over the clear objections of both the affected unions and departmental staff, and that the House call on the government to: (a) pay all employees correctly and on time, every time, for the work they do; (b) exempt those who have been overpaid by Phoenix from having to pay back the ‘gross’ amount, despite actually receiving a substantially lower ‘net’ amount; (c) compensate those in the public service who have experienced damages from Phoenix, both financial and otherwise; and (d) publicly apologize to all of those who have endured hardship as a result of the government's error.
This is a reasonable request. This is a request that honours the realities on the ground of families that have lost so much. I have had constituents tell me stories about having to borrow a tremendous amount of money just to meet their basic needs. Constituents have had to eat at friends' houses, and communities are coming together to support these people, but it is completely unacceptable that they are being asked to do this.
Many business owners have said that if they ever did this, they would be charged and held accountable. How is it that there are two sets of rules for small businesses and for the government?
We ask the government to do the right thing, honour the people who work for us every day, make sure they are paid, and fix this fiasco.
:
Mr. Speaker, I would like to thank my colleague for that spot-on speech based on facts and the real-life experiences of the men and women who work for our country but get no respect from this Liberal government.
I would like to begin by saying we can all agree that the government's and the state's primary purpose is to ensure public safety. As the people responsible for the common good and communal harmony, the most important thing we can do is ensure that our fellow citizens live in safe communities, can send their children to school, can go to work, and can be safe, at work and on the street. I think we can all agree on that.
A government's second responsibility is delivering public services. What do people in our cities, towns, and villages need? They need doctors and nurses, schools, universities, and professional training. They also need people to ensure public safety, including police officers, military personnel, public servants who inspect food to make sure we do not get sick, and scientists who conduct research to make sure our medications are safe. All such people who provide these public services are part of the civil service.
Public service employees are of course at the core of our actions and our mission as a government. Once the objectives of that mission are set and we have determined how we want to live as a society, what kind of justice system and equality we want, and how we can tackle poverty, we adjust our taxes accordingly to figure out how much we need to meet those objectives. I would say that this is one of the fundamental differences between the left and the right. On the left, we set social goals and then we make sure we have sufficient tax revenues to meet those needs, not the other way around, as people on the right tend to do.
Once the objectives have been set and public services have been put in place, the government needs to treat those who are working for society as a whole, its public servants, properly. Right now, those workers are not getting the respect they deserve. The rights of those that the government put on the front lines to make sure that it is taking positive action and moving society forward are currently being violated. These people are dealing with horrible situations. They have been under stress for years because of the incompetence of government officials, the incompetence of successive governments, and today because of the incompetence of the Liberal government. It is important to recognize the scope of the problem caused by the Phoenix pay system.
I thank my colleague from for putting this issue on the agenda in an NDP opposition motion in order to remind the government of the urgent need to act. This situation has been going on for far too long. A total of 193,000 people across the country are affected. Nearly 200,000 people are not being paid properly for the work that they do. In some cases they are not being paid enough, while in others they are being paid too much. It may seem strange to say that it is a problem that people are being paid too much, but I will come back to that. The fact that this issue has not been resolved is a real problem, and it is getting worse as time goes on. It is extremely problematic, particularly at tax time, which is coming up soon. This can lead to a lot of extremely problematic situations.
Nearly 75% of members of the federal public service are victims of the Phoenix pay system. I say “victims” because these people are actual victims. They serve us all. They are following the orders of this government to carry out work that is important to us and we are incapable of paying them correctly. Canada is a G7 nation, but we are coming across as a banana republic. There are people who have to remortgage their home because they are not getting paid. There are people who have to max out their credit cards because they do not know when their next paycheque will come or whether they will get paid enough or paid properly for the number of hours worked. Collective agreements are being breached even though the federal government has a legal obligation to pay its employees on time and for the hours and work that were completed.
What will happen to all those people who have taken out bank loans to pay their rent and buy food and who must repay them and pay interest on their loans and credit cards? Why should they have to pay for the government's mismanagement and incompetence? Why are we asking the men and women who serve us to continue dealing with these absolutely appalling situations? This has been going on for two years. The government continues to tell us that things are coming along.
Last June, $520 million in remuneration was not paid out because of Phoenix pay system errors. Last June, we owed public servants $520 million, and this amount keeps growing. The problem is not being fixed. The ministers have changed, but there is still no solution. This is a monumental farce. We were supposed to save $70 million a year with the Phoenix pay system, but we have wasted $1 billion trying to solve the problem. Everyone agrees that it will take years to fix. The Auditor General himself said so.
How much will this cost Canadian taxpayers? How much will this cost Quebec taxpayers? Some people are saying $4 billion to $5 billion.
How can we calculate that figure? We can calculate it because there is a precedent. Surprisingly, this precedent comes from another Commonwealth country. In 2010, the health department of the state of Queensland in Australia decided to use a pay system invented and run by IBM to pay its 80,000 health workers. It was an instant catastrophe. They ran into the same problems we are seeing here with the Phoenix pay system, including pay errors, missing pay, incorrect amounts, underpayments, and overpayments.
It is mind-boggling that before implementing and launching the Phoenix pay system, the Canadian government never contacted Queensland state officials in Australia to find out what happened and what problems they encountered. This was reported by CBC/Radio-Canada this week. The people of Queensland are utterly stunned and bewildered to hear that the Canadian government forged ahead blindly, without performing any checks or calling the Australian government or the Queensland government. The head of the Queensland nurses' union said she could not believe that a Google search was not done on “IBM” and “payroll”. She is shocked to see virtually the same fiasco playing out a few years later in Canada.
In Australia, there was a public inquiry into this disaster, which threw the lives of public servants and their families into turmoil. The public inquiry was led by Richard Chesterman, who made a similar observation. He said, “[I did a] quick Google search before you came this afternoon and [in] 30 seconds the search turned up a reference to my inquiry.” This means that the Canadian government did not even think to see whether this had been done elsewhere and whether it had affected public servants before it decided to launch the Phoenix pay system. I would call this gross incompetence.
I would call this gross incompetence because the Phoenix pay system was launched in February 2016, which is four months after the Liberal government was elected. The Liberals are the ones who hit the start button. The Liberals are the ones who launched the system, so they are responsible for ensuring that public servants are properly paid.
The NDP is calling for action and compensation. I hope that the Liberal government is familiar with the words “responsibility”, “respect”, and “accountability”.