Privatized pay system burns 50 per cent of workers


If you do your job, you get paid. But if you're working for the federal government, there's only a 50 per cent chance that's true.

According to an investigation by the CBC, half of all federal government employees have reported problems with their paycheques since a privatized pay system called Phoenix came online.

Similar to the problem-plagued privatized social assistance system SAMS here in Ontario, the federal government's Phoenix payroll system was developed by IBM. But since going live in early 2016, thousands of workers, students, and retirees have reported being underpaid or not paid at all. There are problems with salary payments, as well as payments of parental leave and long-term disability.

Earlier this year, CBC reported that IBM has been paid nearly $150 million to develop the system, plus another $50 million to address the problems.