Ottawa·Phoenix Falling

Federal goverment argues pay problems 'an honest administrative error,' as tribunal wraps

The Phoenix pay problems affecting 80,000 workers is an "honest administrative error," argued the federal government at a labour tribunal. The government wants a union's unfair labour practice complaint thrown out.

Public Service Alliance of Canada filed a complaint in June over payroll mess

Sean Kelly is senior counsel representing the Treasury Board of Canada at the tribunal. (Ashley Burke/CBC News)

The Phoenix pay problems affecting 80,000 workers is an "honest administrative error," the federal government argued as a labour tribunal came to a close on Thursday.

The four-day hearing in front of the Public Service Labour Relations Board wrapped up with closing arguments from both sides.

During the tribunal, union representatives and senior officials testified, including the associate assistant deputy minister responsible for the roll out of government's new Phoenix pay system. Rosanna Di Paola testified yesterday that the root cause of the problems are insufficient training, not the technology itself.

The Public Service Alliance of Canada filed a complaint in June arguing the Treasury Board of Canada broke the law by not paying public servants accurately or on time after the roll out of Phoenix. 

"The human suffering that has been exposed in this case is real," Patricia Harewood, the legal officer for PSAC, said during closing arguments.

We are physically doing everything we can to resolve that issue.- Sean Kelly, government lawyer

"We have heard stories of public service workers in dire straights after months of being paid inaccurately or not at all," she added. "There is nothing normal or every day about these stories."

But the government's lawyer said the labour complaint is in "the wrong forum" and should be thrown out. 

Sean Kelly, the lawyer representing the Treasury Board of Canada, said that the case is "strictly a contract dispute" that should be dealt with through the grievance process, not through a board hearing.

"We are being asked to compensate unknown individuals," argued Kelly. "We don't know how many there are. We don't know their names. We don't know their circumstances." 

Adjudicator must now rule

The union argues the government violated the Public Service Labour Relations Act that states an employer is not allowed to change the terms and conditions of employment while it is in collective bargaining with the union. 

The union wants the labour board to issue a written statement that orders the government to: 

  • Pay public servants accurately and on time.
  • Not refuse workers security clearances because of bad credit ratings caused by Phoenix-related financial hardship.
  • Compensate workers for psychological harm they suffered because they weren't paid properly. 
 A government document submitted at the hearing shows that 27 workers at the  Miramichi Pay Centre are on sick leave, that's roughly five percent of all workers. 

But Kelly argued the root of the problem is "untimely data entry coupled with slower than expected processing times," Kelly said.

"We are physically doing everything we can to resolve that issue," Kelly said.

Adjudicator John Jaworski said he hopes to come to a decision on the case as soon as possible.

Deputy Minister of Public Works and Government Services Marie Lemay (right) and and associate assistant deputy minister Rosanna Di Paola speak to reporters during a technical briefing on the Phoenix pay system on Thursday, Aug. 11, 2016 in Ottawa. (Justin Tang/Canadian Press)