Kristen Ouellette, a long-serving federal public servant at Public Services and Procurement Canada (PSPC), expressed feeling like “collateral damage” due to issues arising from the department’s efforts to clear the backlog of Phoenix payroll problems. The department introduced an error to her file, refused to rectify it, and is now deducting hundreds of dollars from her paychecks.
The ongoing troubles stem from the troubled Phoenix pay system, which has caused overpayment and underpayment issues for numerous public servants since its launch in 2016. Despite efforts to address the 216,000 outstanding pay claims, the problems persist, impacting both current and former employees.
PSPC, chosen as one of the institutions to pilot the new Dayforce payroll system, is prioritizing the resolution of pay issues before testing can commence. Ouellette received notification in January of an alleged overpayment due to a mistake in her file dating back to 2020. The department opted to recover the overpayment from her pay rather than seeking reimbursement from the Canada Revenue Agency.
Despite her appeals for assistance, Ouellette found herself bearing the financial burden of the error. The situation reflects broader concerns highlighted by Canada’s Auditor General Karen Hogan, who warned of risks associated with the transition to Dayforce and the potential carryover of existing pay discrepancies.
PSPC’s decision to focus on piloting Dayforce has drawn criticism, with concerns raised about ongoing issues being transferred to the new system. Ouellette’s case, which remains unresolved, underscores the need for a more effective mechanism to address such problems within the government.
The Professional Institute of the Public Service of Canada (PIPSC), Ouellette’s union, expressed concern over her case and highlighted the recurring nature of such issues within the public service. The lack of resolution for individuals like Ouellette raises questions about the government’s approach to managing payroll discrepancies.
As Ouellette continues to navigate the repercussions of the error in her file, her employer has initiated deductions from her paychecks, further exacerbating her financial strain. The government’s commitment to the Dayforce rollout remains steadfast, with testing underway and a phased implementation planned for the coming years.
Despite the challenges faced by individuals like Ouellette, the government asserts its dedication to ensuring the accuracy and timeliness of pay transactions. However, the lingering impact of past errors and the transition to a new system underscore the need for a comprehensive and proactive approach to address payroll issues effectively.