February 24, 2026, marks ten years since the federal government launched the Phoenix pay system. It also marks ten years since tens of thousands of federal public service workers were pushed into financial instability. 

For a full decade, Phoenix has disrupted lives and created ongoing financial uncertainty. Workers were placed in impossible situations through no fault of their own. Today, many are still living with stress and anxiety.

When Phoenix was launched in 2016, the government promised it would modernize payroll and improve efficiency. Instead, it became one of the most damaging government privatization failures in Canadian history. 

More than 233,000 pay cases remain unresolved. A reliable replacement system is still years away. Over 5 billion taxpayers' dollars have been spent trying to fix Phoenix. Workers and taxpayers deserve better. 

Workers continue to deal with Phoenix’s repercussions 

For some impacted workers, the anxiety isn’t just a painful memory; it’s something they’re dealing with in the present-day, as they receive letters out-of-the-blue threatening to take back overpayments well beyond the statute of limitations for collecting them.  

In 2026, workers are still receiving notices demanding repayment of hundreds or even thousands of dollars. These miscalculations are the result of the government’s broken system. The responsibility lies with the government, not with workers.  

After the Phoenix disaster began, the government continues to cause unnecessary anxiety and uncertainty for its workforce by threatening to claw back money they cannot legally take back. Instead of fully addressing the problem, the government is making decisions that risk making it worse. 

This government’s widespread cuts to public services mean fewer resources for the pay center. If solving these cases were truly a priority, this government needs to invest in public service workers. 

PSAC continues to fight for justice and respect for workers and their families. We are calling on the government to take urgent action to: 

• Extend Phoenix general and severe damages claims from 2020 to the present; 
• Stop threatening workers with unlawful overpayment recoveries; 
• Eliminate the backlog of pay issues; 
• Fully implement and fund all Auditor General recommendations; 
• Increase full-time staffing at the Pay Centre to ensure experienced compensation advisors can continue supporting workers;  
• Launch a National Public Inquiry into the Phoenix pay disaster. 

A decade of failures is ten years too long. The Phoenix pay disaster never should have happened. Workers deserve restitution for what they went through, and a guarantee that it won’t happen again.
 
Additional resources

If you or someone you know is affected by the Phoenix pay disaster and needs help, contact PSAC’s Phoenix team by selecting one of the Phoenix options in the “What is your inquiry about?” drop down menu.   
 
If you want to know more about what compensation you’re entitled or find out more about our ongoing work pushing the government to fix the Phoenix nightmare, browse the resources on our Phoenix page.