Canada to Scrap IBM Payroll Plan Gone Awry Costing C$1 Billion

  • The Phoenix system has been plagued with problems for years
  • Thousands of government workers affected, some missed pay
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Canada plans to scrap a major IBM federal payroll plan that created chaos for thousands of government workers and will have cost the government almost C$1 billion ($780 million) by the time it’s over.

The Phoenix project was originally chosen by Prime Minister Justin Trudeau’s Conservative predecessors 10 years ago to centralize the government payroll. International Business Machines Corp. won the contract to install and help run the system, which uses Oracle Corp. software.