After nearly a decade of Phoenix pay system disasters, the federal government has announced its decision to move forward with Dayforce as the replacement for the troubled Phoenix pay system. On June 11, Minister Joël Lightbound confirmed that the government is entering the "final build and testing phase" of the Dayforce HR and pay solution.
While PIPSC welcomes any step toward finally resolving the ongoing pay crisis, we remain cautiously optimistic and have serious concerns about the implementation process.
Feasibility study reveals concerning gaps
The government's decision is based on a feasibility study with mixed results. Most alarming: the study found that the government's ability to actually operate the new system was rated as "insufficient." This is particularly troubling since operating the system day-to-day is crucial to ensuring our members get paid correctly.
The feasibility report itself acknowledges: "While the Project demonstrated that it is feasible to implement Dayforce, this should not be interpreted as readiness to implement now."
Still years of Phoenix ahead
The reality is sobering. Full implementation won't begin until March 2027, with a final deployment decision not occurring until Winter 2027. This means public servants could be suffering under Phoenix for nearly four more years if complications arise.
The next two years will focus on testing with just two departments and one agency: Public Services and Procurement Canada, Shared Services Canada, and the Canadian Nuclear Safety Commission - involving only about 30,000 employees out of the 431,000 total.
Dayforce won't fix existing Phoenix issues
A crucial point the government continues to ignore: Implementing Dayforce will not resolve the estimated 370,000 unresolved Phoenix transactions still clogging the system. These existing problems must be solved separately, meaning our members face ongoing Phoenix chaos plus years of Dayforce uncertainty.
This is the current Phoenix reality for our members:
- 500 PIPSC members still have open, unresolved complex files
- 32% of federal employees reported pay errors in 2023-24
- At least $3.5 billion spent on Phoenix since 2017
- Over $150 million spent just looking for a replacement
Data sovereignty crisis
Perhaps most concerning is that Canada's federal payroll data will be controlled by Dayforce, an American multinational corporation. At a time when Canada-U.S. relations are strained, critical questions remain unanswered:
- Will Canadian data be stored on U.S. servers?
- How will data be protected under American laws?
- Why wasn't preference given to a Canadian company?
The one-size-fits-none problem
Dayforce inherits Phoenix's fundamental flaw: forcing a single system to handle more than 100 departments with nearly 150 different collective agreements. Many experts argue that multiple specialized systems would be smarter than cramming this complexity into one platform.
Six years of government stonewalling
The government continues to refuse extending Phoenix damages compensation beyond March 2020. After six years since the 2019 compensation agreement, they haven't even provided a rationale for this refusal. The solution is simple: extend the existing compensation framework for another five years to cover ongoing harm.
Our demands
We demand the government:
- Achieve excellence, not "adequate": All system capabilities must be fully functional before launch
- Resolve Phoenix backlog: Address all 370,000+ outstanding transactions before implementing Dayforce
- Protect data sovereignty: Keep Canadian data in Canada under Canadian control
- Extend compensation: Cover all Phoenix damage regardless of when it occurred
- Full cost transparency: Disclose complete implementation costs beyond the initial $16.9 million
Looking forward
PIPSC remains committed to working with the government to solve this crisis. However, we will not compromise on our members' rights, privacy, or fair treatment. We've learned from Phoenix that good intentions without proper execution lead to devastating consequences.
Our members deserve better than promises and pilot projects. They deserve a pay system that works, compensation for harm endured, and confidence that their employer can fulfill its most basic obligation: paying them correctly and on time.
The decade of disaster must end. We'll continue to hold the government accountable every step of the way
For more information on Phoenix issues and PIPSC's advocacy efforts, visit our Phoenix resources page. Members experiencing ongoing pay issues should contact member services.