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Phoenix pay errors continue to haunt public service a decade after launch
Ten years after launch, Phoenix system errors still affect thousands of public servants, with taxpayers spending $5 billion; a $350.6 million Dayforce replacement begins in 2027.
On March 3, 2026, The Canadian Press reported Phoenix pay system errors continue to affect thousands of public servants, and taxpayers have spent about $5 billion on launch and fixes.
Adopting off-the-shelf software and centralizing pay functions in Miramichi narrowed payroll capacity, while a cancelled single-department pilot and ignored warnings led to an all-at-once Phoenix pay system launch.
Affected employees and unions report ongoing harm and protests, with Karine Chawla, Transport Canada employee, still facing overpayment demands and a Laurier Avenue protest held on Feb. 28, 2019.
Ottawa says Dayforce will replace Phoenix under the awarded ten-year, $350.6 million contract, with implementation set to begin in 2027.
As the government pursues efficiency reforms, Phoenix offers cautionary lessons as backlogged Phoenix cases persist and affected public servants experience widespread hardship, with observers and critics noting cultural and oversight issues.