Phoenix Pay System

Phoenix: Damages ruled taxable as Treasury Board refuses to cooperate

Monday, May 3, 2021

After months of waiting, the Canada Revenue Agency (CRA) has rejected our request to review the taxability of Phoenix damages. This is directly due to Treasury Board’s refusal to provide CRA with a joint statement of facts which corrects CRA’s understanding of the purpose of our damages settlement agreement.

In an April 27 letter from the CRA, the Agency states:

Government rushing Phoenix damages payment without tax ruling

Thursday, February 18, 2021

The Liberal government has shamelessly chosen the 5th anniversary of the Phoenix pay system disaster to short-change thousands of PSAC members on their compensation for years of pay problems.  

Even though PSAC is in the process of working with CRA to review the taxability of Phoenix damages, the federal government has confirmed that it intends to ignore these efforts and issue the up to $2,500 for our members, on March 3 – with taxes deducted. Treasury board provided no explanation for their actions. 

Agreement Between UTE and CRA for Phoenix Damages

Friday, July 24, 2020

I am pleased to announce that the Union of Taxation Employees - Public Service Alliance of Canada (UTE-PSAC) and the Canada Revenue Agency (CRA) signed an agreement that agrees to implement, in the same manner and within the same timeframes, the terms of the Memorandum of Agreement (MoA) with regard to Damages Caused by the Phoenix Pay System, agreed to by the Treasury Board of Canada and the Public Service Alliance of Canada.

Trudeau’s Phoenix compensation offer not good enough

Friday, May 3, 2019

PSAC determined to get the fair settlement its members deserve

PSAC President Chris Aylward issued the following statement:

After two years of negotiations, the Liberal government has offered only 1.25 days of leave per year, for 4 years, as general compensation to every member who has fallen under the disastrous Phoenix system. PSAC could not agree to this meagre proposal.

PSAC Change File (Union Dues)

Wednesday, November 21, 2018

(Video also available)


Today, I would like to talk to you about a subject that is not always popular but is still very important: your union dues.

As you know, the Phoenix payroll system has created and still creates a lot of problems for many of you. Since April 2016, when the CRA was forced to join this payroll system, your union has focused on helping its members resolve problematic situations as quickly as possible.