Unanticipated Complexity in payroll system results to underpaid employees

posted in: Payroll Systems, What's Happening | 0

According to Public Services and Procurement Minister, Marie Lemay, 80,000 of 300,000 government employees are underpaid. This is said to be a result of technical malfunctions and slight incompetence in the means of preparation. Since the Phoenix payment system went live last 2016 in February, more than 700 government employees received no salary.

Root of the problem

Last 2016 in April, the Public Service Alliance of Canada pleaded against the rollout of payroll system by the Liberal Government. PSAC wished to provide a delay in the second phase in the rollout due to the thousands of PSAC members shafted on payments from Phoenix. PSAC remains against and loud about Phoenix.

Effects of unanticipated complexities

These “unanticipated complexities” is said to be under IBM in 2011, after they won the contract to develop and operate the Phoenix payment system. Public Services and Procurement, at that time, remained satisfied with IBM’s assurance that its payroll software package is able to handle the complexities of paying federal government employees.
IBM continues to initiate changes in order to cope with the complexities, which weren’t referenced in the original requirement documents that the federal government issued as part of the RFP process. The changes that have been approved have resulted in millions of additional cost and provided delays.

Another issue is the myriad of issues coming to light during the software development work. The issues pertained to the existing union contracts being interpreted differently by payroll advisors in attempts to circumvent the contracts. This applies to various regions in Canada, with contract terms vague and unclear when they shouldn’t be.

The effects of the payroll system would result in a manner of reconciliation that should satisfy both the government and PSAC but is predicted to run a long while.

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