Stop the taxation of Phoenix damages

The Liberal government has shamelessly chosen the fifth anniversary of the Phoenix pay system disaster to short-change thousands of PSAC members on their compensation for years of pay problems.

Even though PSAC is in the process of working with the CRA to review the taxability of Phoenix damages, rather than waiting just a few more days, the federal government has confirmed that it intends to ignore these efforts and issue the up to $2,500 for our members, on March 3– with taxes deducted.

The government still has time to do the right thing. General damages should not be taxed, so we’re calling on key ministers to immediately intervene to fix this before payments are issued.Take ActionIt’s a slap in the face to the tens of thousands of PSAC members who suffered years of pay problems, and then worked non-stop during this pandemic to deliver aid and benefits to millions of Canadians in crisis. And it’s a betrayal to those same PSAC members who agreed to a $2,500 Phoenix settlement reached for “stress, aggravation, and pain and suffering” – compensation for which is normally not taxed.

We will pursue every legal route to secure the full compensation that our members are entitled to. This includes tax challenges that would retroactively see our members reimbursed should the payments be issued as planned on the March 3, but our goal remains to avoid any time consuming and complex tax disputes for our members.

Phoenix short-changed PSAC members for years – the last thing they deserve is for the government to short-change them yet again.

In solidarity,
Chris Aylward
PSAC National President

PS: We will continue to work to resolve this problem and updates will follow in the coming days — you will be the first to hear an update via email, website, or our social media channels.