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Civil servants to be compensated for Phoenix payroll debacle, says public service union

The country’s biggest civil service union says its members will get lump sum payments to compensate them for the federal government’s failed pay system under an agreement reached late yesterday.

The Public Service Alliance of Canada says each of its roughly 140,000 members stands to collect $2,500 instead of the five days of paid time off that was earlier agreed to by other civil-service unions.

PSAC said the lump sum is compensation for “pain and suffering” caused by the broken Phoenix pay system, which created underpayments, overpayments or in some cases no pay cheques for tens of thousands of government employees.

Separately, the union said it had reached a contract settlement for about 70,000 civil servants.

The tentative three-year deal for PA group employees includes average wage increases of 2.11 per cent each year.

Details on when a ratification vote will be held are expected next week.