The Liberals break promise by outsourcing pay processing jobs to IBM: Union

May 3, 2018

The Trudeau government broke a promise that it would not privatize pay processing to manage the Phoenix crisis with a new contract that turns over the work of public servants to IBM, says the Public Service Alliance of Canada.

PSAC Vice-President Chris Aylward said the union was given assurances that no work done by public servants would be contracted out to stabilize the pay crisis by Public Safety Minister Ralph Goodale. Goodale heads the working group of cabinet ministers assigned by Prime Minister Justin Trudeau to oversee the Phoenix fiasco.

He said similar assurances were given by Les Linklater, the associate deputy minister at Public Services Procurement Canada, who is stickhandling the government’s effort to stabilize of Phoenix.

“The government has broken its commitment to the PSAC, a commitment they made they would not outsource any work to stabilize the payroll system,” said Aylward.

“We are opposed to all contracting out…All pay processing should be done by public service workers and if more people are needed, the government should be hiring staff and not contracting out to IBM.”

Aylward said the contract will take over the work of public servants at the Gatineau satellite pay centre, who handle the 24-hour run of pay transactions and flag and fix errors as they crop up. He said that work will be given to 100 IBM employees and public servants will be reassigned to other work processing pay.


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The Peterborough and District Labour Council (PDLC) is the central body of union locals in the Peterborough area (Peterborough County plus Omemee) who are affiliated with the Canadian Labour Congress (CLC).

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