Feds reach agreement with civil service unions on troubled Phoenix pay system

Federal officials are confirming they will now wait until all their outstanding pay issues from the Phoenix system are resolved before trying to recover overpayments to employees.

Under an agreement reached with civil service unions last weekend, collection of overpayments or emergency salary advances will be halted until employees' individual pay disputes have been resolved, and their paycheques are correct for at least six weeks.

Tens of thousands of civil servants have been underpaid, overpaid or not paid at all for long periods over the past two years as a result of problems created by the Phoenix system.