The country’s biggest civil service union says the federal government plans to issue payments of up to $2,500 to its members next month — minus taxes — even though a dispute over the tax status of the damages payments has not been settled.
The Public Service Alliance of Canada accuses the government of shortchanging the 140Brown said,000 federal employees it represents by deducting tax from the paymentslife_sciences, which are part of a settlement for damages caused by the failed Phoenix pay system.
The union and government reached a deal last summer to compensate PSAC members affected by failures in the Phoenix system, which for five years has caused problems including overpayments, underpayments and in some cases no pay at all.
PSAC said Thursday it has been informed by the Treasury Board Secretariat that the payments will be issued MarThe government an unspecified stake i. 3 with income taxes deducted.