OTTAWA, ON, Feb. 27, 2025 — For nine years, the Phoenix Pay System has stood as a stark warning about the true costs of outsourcing critical government services. What began as a $5.8 million contract with IBM has now ballooned to over $650 million through more than 50 contract amendments - all while failing to deliver its basic function of paying public servants correctly and on time.

As a result, workers are going into debt as a result of ongoing financial insecurity and years of incorrect and unpredictable pay. Their futures are being impacted as their credit scores plummet – some have even lost their homes. Pay errors are also repeatedly reported on T4 and other financial reports, causing difficulties with the CRA and provincial tax agencies, tangling the web even further.

"The government's obsession with outsourcing has created a costly spiral of failure," said the Professional Institute of the Public Service of Canada (PIPSC) President, Sean O’Reilly. "After spending hundreds of millions on IBM for Phoenix, we're now watching history repeat itself by once again choosing costly outsourcing for the new pay system, instead of leveraging in-house expertise.”

“Meanwhile, nearly 300,000 pay transactions remain unprocessed, and that number is only rising.” he continued. “With two-thirds of these cases being over a year old. This is not value for money - this is throwing good money after bad."

The mounting costs extend far beyond direct contracts. The 2024 budget includes another $135 million investment for HR improvements and the next generation pay system. This is on top of the $517 million allocated in 2023 and $521 million in 2024 just to maintain staffing at the Pay Centre to handle the ongoing backlog. The government has also spent millions more on consultants, including $27.7 million to McKinsey to "help improve" a system that fundamentally doesn't work.

"Public servants deliver essential services that Canadians rely on every day, yet for nine years, they've been fighting just to receive their basic pay," noted the Canadian Association of Professional Employees (CAPE) President, Nathan Prier. "From day one, we warned about the risks of outsourcing such a critical system. A rush to find the cheapest option has now cost Canadians more than $3.5 billion and counting. We urged consultation and stressed the importance of maintaining internal expertise. Instead, the government eliminated 1,200 experienced pay advisor positions and replaced them with 550 positions at a centralized location.”

“The results speak for themselves,” he continued. “Thirty percent of public servants continue to experience errors in their basic pay, and thousands wait years for proper processing of promotions, transfers, and retirement benefits. We are long overdue for a renewed damages agreement to compensate our members, which the Treasury Board has been promising but intentionally stalling."

The Phoenix Pay System demonstrates what happens when governments prioritize outsourcing over investing in their own workforce. Public servants have the expertise, dedication, and understanding of complex government operations that external contractors simply cannot match. After nine years and billions of wasted taxpayer dollars, it's time for the government to recognize that strong public services require investment in public servants, not an endless cycle of expensive external contracts that fail to deliver.

About CAPE

With more than 25,000 members, the Canadian Association of Professional Employees (CAPE) is one of the largest federal public sector unions in Canada, dedicated to advocating on behalf of federal employees in the Economics and Social Science Services (EC) and Translation (TR) groups, as well as employees of the Library of Parliament (LoP), the Office of the Parliamentary Budget Officer (OPBO) and civilian members of the RCMP (ESS and TRL).

About PIPSC

The Professional Institute of the Public Service of Canada (PIPSC) was founded in 1920.  With over 75,000 members, the Institute is the largest union in Canada representing scientists and professionals employed at the federal and some provincial and territorial levels of government.

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Media contacts:

Canadian Association of Professional Employees (CAPE), Media@acep-cape.ca

Professional Institute of the Public Service of Canada (PIPSC), jfillion@pipsc.ca

Ottawa, February 11, 2025 – On International Day of Women and Girls in Science, the Professional Institute of the Public Service of Canada (PIPSC) is highlighting persistent barriers faced by women scientists in federal research positions, particularly in fieldwork settings. The union–which represents over 20,000 scientists and researchers in the federal public service––has released a new report titled Gender Equity in Fieldwork: A Guide for Employees and Managers. 

The report's findings show that most science-based departments and agencies (SBDAs) lack clear policies or guidelines to ensure the health and safety of women and gender minorities in field research settings. This leaves researchers to navigate challenges alone, often relying on informal networks rather than institutional support.

"Every day, thousands of brilliant women scientists across Canada's public service are advancing critical research that shapes our nation's future," said PIPSC President Sean O'Reilly. "Yet they continue to face systemic barriers that limit their full participation in scientific fieldwork."

"This research confirms what we’ve been hearing from our members about deeply troubling safety concerns in field settings," Sadichchha Pokharel, PIPSC Research Officer noted. "These are not mere inconveniences—they are systemic barriers that can derail careers and diminish valuable scientific contributions."

The release of this report comes at a critical time, as women continue to be underrepresented in STEM fields. Currently, women make up less than 30% of workers in Canadian STEM (Science, Technology, Engineering and Mathematics) occupations.

PIPSC is calling for immediate action to address these challenges. The organization advocates for the development of comprehensive fieldwork safety policies and the implementation of proper infrastructure and facilities at research sites. Additionally, PIPSC emphasizes the need for enhanced support systems for women and gender minorities in field research positions, along with regular monitoring and evaluation of gender equity measures.

"This isn't just about equality – it's about enriching the Canadian scientific community with diverse perspectives and talents,” said O’Reilly. “When we exclude women from fieldwork, we diminish the quality of global science."

PIPSC represents over 75,000 public-sector professionals across the country, most of them employed by the federal government. Follow us on Facebook, on X (formerly known as Twitter) and on Instagram.

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For more information: Johanne Fillion, 613-883-4900 (mobile), jfillion@pipsc.ca

As part of PIPSC's ongoing commitment to advancing public sector science, the union has released a comprehensive new report examining gender equity challenges in scientific fieldwork. Gender Equity in Fieldwork: A Guide for Employees and Managers provides vital guidance for employees and managers working to create more inclusive research environments.

"Every day, thousands of brilliant women scientists across Canada's public service are advancing critical research that shapes our nation's future," notes PIPSC President Sean O'Reilly. "Yet they continue to face systemic barriers that limit their full participation in scientific fieldwork."

The report draws on the experiences of women and non-binary federal researchers to document challenges ranging from inadequate infrastructure to serious safety concerns. It provides practical solutions and best practices to address these long-standing issues.

This guide is for everyone in public sector science. It serves both researchers facing barriers in their work and those in positions to implement positive change. We particularly encourage managers and senior leadership to engage with these findings and recommendations.

The report recognizes that women scientists are not a monolithic group. Our analysis includes the experiences of racialized women, Indigenous women, non-binary people, transgender women, women with disabilities, LGBTQI2S+ people, and women experiencing any other system or form of oppression. When we say women, we mean all women.

Each section of the report examines specific challenges in fieldwork settings and provides concrete tools for creating more equitable and safe research environments. The recommendations are practical, implementable, and designed to create lasting change.

View the full report in PDF

View the full report in HTML

As the US government moves forward with harmful tariffs on Canadian goods, we at ACFO, CAPE and PIPSC stand united in condemning these measures and their devastating impact on Canadian jobs, families, and businesses. These tariffs threaten economic stability and labour. We will not stand by as working people bear the burden.

At a time when Canadians are facing unprecedented challenges—whether it’s rising costs of living, housing shortages, or ongoing economic uncertainty—these tariffs will only make life harder for families, workers, and communities across the country. The people of Canada are already feeling the strain. Adding additional barriers to trade only exacerbates the hardships many are already enduring.

We stand in solidarity with trade unions and all workers affected by these tariffs. Our members, dedicated public service professionals, are always ready to assist Canadians, support affected industries and communities, and deliver any relief measures the federal government enacts. 

ACFO, CAPE and PIPSC members, and all federal public sector workers, have a long history of stepping up in times of crisis—whether during the COVID-19 pandemic or other national challenges. This moment is no different. Our members will continue to deliver the critical programs and services Canadians rely on, ensuring that no one is left behind.

Now is the time for unity, solidarity and strength.
___________________________

Sean O’Reilly – President, Professional Institute of the Public Service of Canada (PIPSC)
Rob Hawkins - President, Association of Canadian Financial Officers (ACFO) 
Nathan Prier – President, Canadian Association of Professional Employees (CAPE) 

OTTAWA, January 27, 2025 – Federal unions representing more than 330,000 workers have launched a national campaign promoting remote work as the future of work for millions of workers in Canada.

The campaign from the Public Service Alliance of Canada (PSAC), the Canadian Association of Professional Employees (CAPE) and the Professional Institute of the Public Service of Canada (PIPSC) highlights the benefits of remote work for people in Canada – more productivity, less congestion on our roads, reduced pollution and better work-life balance for families.

The initiative highlights the overwhelming evidence that a one-size-fits-all approach to remote work is ineffective for Canada’s diverse public service and its future, and families who rely on public services pay the price. The campaign will be featured on the radio, in print, on social media and out-of-home ads across the country.

According to surveys and research by PSAC, 90% of respondents want to either work remotely as much as possible or have a flexible option. This data also shows remote work options and flexible arrangements are key to promoting a healthy work environment and for recruiting and retaining the best talent.

“The evidence is clear: remote work is good work. Flexible work arrangements allow us to build the modern, productive public service of tomorrow which will benefit everyone in Canada. It saves taxpayers money, is better for the environment, and sets the bar for all workers across the country.”

Sharon DeSousa, National President of the Public Service Alliance of Canada

“At a time when employees are being asked to do far more with far less, promoting greater flexibility, especially through expanded telework, remains relevant and is critical for retaining top talent. With departments facing cuts and pressures increasing dramatically, the federal government must lead by example and provide the best possible working conditions, while saving taxpayers billions of dollars. It has already been conclusively proven that telework improves productivity and employee well-being where it makes sense – it’s time for Canada to catch up.”

Nathan Prier, President of the Canadian Association of Professional Employees

“The future of work isn’t about counting days in an office, it’s about supporting professionals to deliver the best results for Canadians. By expanding remote and telework options in the federal public service, we can save taxpayer money, boost productivity, and improve workers’ lives – driving outcomes that benefit everyone. The key is 'presence with purpose'.”

Sean O’Reilly, President of the Professional Institute of the Public Service of Canada

Federal unions are urging the government to adopt flexible work arrangements, allowing workers to be more productive, have better work-life balance and make life more affordable. This should not be a political decision. Regardless of the political party in power, remote work is a viable option for the federal public service that could save taxpayers money and help make the public service even more productive.  The future of work is remote.

We are also calling on the public to join the movement and support remote work — not just for the federal public service, but as a new norm for workplaces across the country. The government could lead the way in creating modern and more productive workplaces. We invite all those who wish to participate to amplify this critical conversation on social media using the hashtag #RemoteWorks. Together, we will advocate for remote work and a thriving public service.

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For media inquiries:

PSAC: Media@psac-afpc.com 

CAPE: Media@acep-cape.ca

PIPSC: jfillion@pipsc.ca

We are deeply dismayed with the decision by Immigration, Refugee and Citizenship Canada (IRCC) to cut 3,300 jobs within the department. This is not just a number—each position represents critical public service work that supports thousands of individuals seeking to build better lives in Canada. By cutting these jobs, vital services will be left undelivered, impacting those who rely on them the most.

The scale of these cuts—3,300 jobs—is significant. Reducing workforce capacity at this scale will undoubtedly challenge the department’s ability to meet its mandate effectively. IRCC's own admission that projects and programs will be reviewed for cancellation, downsizing, or modification is raising alarm bells across the public service, as cutting good jobs inevitably leads to cutting good public services. 

We recognize that announcing 3,300 job cuts without providing immediate details as to which jobs are on the chopping block has also left thousands of employees concerned about their future. Our top priority is ensuring that this process is carried out with transparency, fairness, and a shared commitment to maintaining high-quality public services. Work force adjustments must not come at the expense of the integrity of Canada’s immigration system or the well-being of the employees who serve it.

As the department has informed employees that decisions on individual positions will not be finalized until mid-February, we recognize the toll that this uncertainty can take. PIPSC is fully prepared to assist and advocate for our members, ensuring their rights are upheld and their futures are considered with care.

We call on IRCC leadership to prioritize collaboration with PIPSC and other unions to ensure that the work force adjustment process is managed thoughtfully and compassionately. Transparent communication, equitable treatment of employees, and a focus on maintaining core services must be central to this process. We further urge the government to consider innovative approaches to achieve fiscal balance without compromising the critical services upon which Canadians and newcomers rely.

As always, PIPSC remains steadfast in supporting our members. We have resources available to provide guidance, answer questions, and offer support to employees impacted by this announcement. If you have any further questions or require any assistance, we encourage you to contact your steward and/or consultation team.

The National Joint Council bargaining agents have concluded discussions with the Treasury Board regarding the long-awaited review of its public service dental care plan. While we welcome the upcoming changes set to take effect on January 1st, 2025 and thank the Treasury Board for their receptiveness to bring in some major improvement, we are disappointed to see they continue to treat this plan as an afterthought and imposed a plan without the sign off of Bargaining Agents.

The revised dental care plan does include several enhancements that will benefit public service employees and their families. These changes are the result of sustained advocacy led by PIPSC with our partners from other federal unions.  The major changes speak to the importance of union representation in ensuring fair and meaningful improvements for our members. We are encouraged by these developments and recognize the positive impact they will have on dental care access and affordability for public servants, but disappointed in how the process was managed.

It is incredibly disheartening to see the Treasury Board’s continued reluctance to treat the NJC plan as a priority. Despite the value and significance of this plan to thousands of public service workers, it remains evident that the Treasury Board regards the NJC dental care plan as a secondary matter to the PSAC plan - a plan negotiated through collective bargaining rather than consultation. This second-tier status undermines the importance of a benefits program that is fundamental to employee well-being and morale.

As we move forward, PIPSC and the NJC will continue to monitor the implementation of the new plan and hold the Treasury Board accountable for its responsibilities to public service employees. 

While we celebrate the improvements secured through our efforts, we remain steadfast in our commitment to advocating for fair and comprehensive benefits for all public service workers, and equal treatment of benefit plans.

Despite high-profile scandals involving for-profit prisons, unsafe long-term care facilities, renovictions at Starlight Investments in Toronto, tax avoidance, and an overly close relationship with the oil and gas industry, PSP Investments—tasked with managing the pension fund of most of our members—maintains a nonchalant attitude toward responsible investing. At recent public and union-stakeholder meetings, PSP officials dodged pointed questions and criticism regarding their shocking record on Environmental, Social, and Governance (ESG) issues.

Unlike most other pension plans this size, PSP lags in integrating ESG principles into its investment strategies. While they have acknowledged the relevance of climate risks on investment profits, they remain largely focused on reporting, not taking action—a stance that most large plans evolved from over a decade ago. This failure to integrate responsible investing not only endangers future returns but also deepens the climate and affordability crisis. PSP is also conspicuously silent on other critical aspects of ESG including equity initiatives, tax fairness, indigenous rights, union-busting, and evidence-based public policy.

This is not rocket science. Other major pension fund investors, such as Quebec’s Deposit and Investment Fund (CDQP) and Ontario’s University Pension Plan, have proven that meaningful ESG investing is both feasible and financially viable. PIPSC is calling on PSP Investments to take immediate steps to align its investment strategy with the values of the public service workers for which it is supposed to work. This means creating a genuine path to carbon reduction, adopting investment exclusions based on common-sense ethical standards, and signing onto global investment commitments respecting human, social, and worker rights.

PSP Investments operates as an arm’s length Crown corporation, tasked with managing member and employer contributions to the Public Service Pension Plan, the defined benefit pension plan covering most PIPSC members in the Core Public Administration and at separate employers.