A timeline of the Phoenix pay debacle: 29 years and counting

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Phoenix, a timeline: How the federal government has spent nearly three decades struggling to deliver a new pay system for its 300,000 employees.

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Prime minister Brian Mulroney’s government started assessing options for a modern pay system back in 1989.


June 1989: Conservative government of Brian Mulroney begins analyzing options for replacing legacy pay systems

Aug. 26, 1993: Accenture wins $45-million contract to automate much of the work handled by 750 pay and pension administration employees

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Former prime minister Jean Chrétien’s Liberals killed the Accenture deal, triggering a lawsuit.


April 1995: Liberal government of Jean Chrétien terminates Accenture contract for default

June 1996: Accenture sues government for $45 million in damages

January 2003: parties settle, terms not disclosed

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People enter an Accenture office in downtown Helsinki on April 27, 2011.


September 2007: Public Services and Procurement Canada proposes project to modernize pay system technology. Decision deferred.

2008


Spring: House of Commons committee discusses consolidating government pay administration, which is spread across dozens of departments and agencies and uses many different systems.

2009


May: Public Services’ Accounting Banking and Compensation Branch finishes business case for fixing the pay system.

July: Cabinet approves a Transformation of Pay initiative, consisting of a $122.9-million project to centralize pay administration for 46 federal departments and a $186-million project to install a new system that would become known as Phoenix, serving 101 departments and nearly 300,000 employees.

2010


February: Public Services issues request for proposals for pay modernization. The winning contractor is to adapt and link the new pay system’s software, based on PeopleSoft technology, to the federal government’s pay administration procedures and rules.

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Stephen Harper’s Tories took up the crusade to modernize the federal pay system.


August: Prime minister Stephen Harper announces the government’s new pay centre will be located in Miramichi, N.B.

2011


June 6: The federal budget unveils a deficit-reduction action plan

June 29: Pay modernization contract awarded to IBM, teamed with Deloitte Inc. and Oracle Canada. Terminates June 28, 2019. As of yearend 2017, the government had paid out more than $200 million.

Aug. 4: Shared Services Canada created, responsible for the government’s email, telecommunications and data centres.

December: Public Services begins implementing the pay-consolidation project, which is completed four years later. Fourteen hundred pay administrators across the country are to be phased out and replaced with 550 employees in Miramichi. It will handle nearly two-thirds of the government’s pay transactions.

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The Public Service Pay Centre is shown in Miramichi, N.B. The operation has been in the political line of fire since it opened.

2012


March: The pay centre opens in Miramichi

Fiscal year: The budget for pay modernization project is reduced in line with government-wide cost-cutting effort.

December: Public Services begins implementing pay modernization project.

2014


June: Initial Phoenix design is completed, version of PeopleSoft to be used changed to 9.1 from 8.9.

2015

Spring: Planned July pilot with Natural Resources changed to become internal Public Works pilot to conduct tests on the pay system

Summer: Pay modernization project defers key software enhancements including retroactive automation for ‘acting’ positions and retroactive transactions relating to changes in collective agreements.

July 13: Sensitive data removed from pay modernization defect tracking tool following a privacy breach

Mid-Sept: Two-stage rollout of Phoenix delayed from October and December to February and April. Final testing of system moved to January.

Oct. 19: Liberals win a majority in federal election

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The Liberal cabinet came in, and inherited the Phoenix time bomb.


Nov. 4: Liberal cabinet sworn in. Public Works department renamed Public Services and Procurement Canada

2016


Jan. 18: Final draft of report by S.i. Systems, an independent contractor, concludes Phoenix is ready to be rolled out.

Jan. 29: Public Services and Procurement Canada receives a draft copy of a second assessment of new system’s readiness from Gartner. This report, commissioned by Treasury Board, is more pessimistic about the readiness of Phoenix but Public Services Minister Judy Foote does not see it until after Phoenix is launched.

Jan. 29: The Public Service Management Advisory Committee meets to consider final preparations for Phoenix – those present say their departments are ready to go live.

Feb. 24: First phase of Phoenix rollout begins, involving 34 federal departments and 120,000 employees.

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Deputy Minister of Public Works and Government Services Marie Lemay was the public face of the Phoenix struggle for months.


Apr. 11: Marie Lemay joins Public Services as deputy minister, replacing George Da Pont, who is retiring.

April 21: Second phase of pay modernization launched involving 67 departments and 170,000 employees. About 30 per cent of employees have errors in their paycheques. Backlog of pay transactions soars as errors and knock-on effects accumulate.

May: Lemay meets with PwC, a consulting group, and asks it to examine Phoenix system’s processes. PWC hired in late fall to suggest ways of fixing problems.

Summer: Government begins re-hiring compensation advisers to staff satellite offices in Gatineau, Winnipeg, Montreal and Shawinigan. Public Services department steps up training for human resources employees across government. Help lines set up for dealing with emergency cash needs, tax issues.

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Public Services Minister Judy Foote speaks to the media in Miramichi, N.B. She left the portfolio, for family reasons, with the problem unresolved.


Nov. 29: Public Services Minister Judy Foote says during Commons committee testimony that it had been a mistake to reduce the number of government compensation advisors before Phoenix was up and running.

2017


February: Treasury Board and PSPC hire Goss Gilroy to do lessons learned report on Transformation of Pay Initiative. Data completed July 2017

April: Public Services begins processing back pay following the retroactive signing of collective agreements with government unions. Forty per cent of the pay increases had to be handled manually.

Apr. 27: Prime Minister establishes Ministers’ working group to provide greater oversight

July: Oversight committees established at multiple levels of bureaucracy to take whole-of-government approach to Phoenix fixes. Lead committee made up of deputy ministers and equivalent.

Summer: Establish joint Public Services-Treasury Board pay stabilization team to closely track progress of fixes. Led by Public Services associate deputy minister Les Linklater.

Aug. 24: Judy Foote resigns as Minister to spend more time with family

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Public Services and Procurement Minister Carla Qualtrough is now in the hot seat on the Phoenix file.


Aug. 28: Carla Qualtrough takes over as Public Services Minister.

September: Danielle May-Cuconato hired as Assistant Deputy Minister of Pay Stabilization Project

Nov. 21: Auditor general tables his examination of Phoenix, reveals backlog of pay requests is approaching 500,000 as of June 30.

Dec. 27: Public Services Minister Carla Qualtrough confirms number of transactions awaiting processing at pay centre exceed 600,000.

2018


Feb. 15,: Public Services dashboard shows escalation in pay transaction backlog to 633,000.

Feb. 24: second anniversary of Phoenix Pay’s launch.

IN-DEPTH: Risks unheeded, journey without end: The seeds of the tortured Phoenix pay project were planted three decades ago

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