The federal government brought in the system four years ago for all employees and it continues to be plagued with issues.

With a federal election call expected any day, there is little chance that bargaining would resume before the Oct. 21 vote, the union said.

The incentives included a payment of $4,000 to compensation advisers, the pay-centre employees tasked to stabilize Phoenix, as well as double-time compensation for overtime.

Treasury Board President Joyce Murray says three companies will develop and test potential human-resources and pay-system pilot projects for federal workers.

The cost of building and putting in place a new pay system for federal civil servants should pale in comparison to the cost of stabilizing the failed Phoenix system.

The Public Service Alliance of Canada — the civil service's biggest union — has walked away from talks aimed at reaching new contracts affecting more than 100,000 workers.

The Public Service Alliance of Canada says the government is offering general compensation of just 1.25 days of paid leave per year, for four years.

Civil servants this month are marking three years since the initial roll-out of Phoenix, which resulted in more than half of all federal employees being overpaid, underpaid or not paid at all.

When Prime Minister Justin Trudeau entered the Delta Hotel Edmonton South on Wednesday evening, he was greeted by dozens of protesters bringing attention to the problem-plagued Phoenix pay system.

The Phoenix system, launched two years ago as an efficient way to pay government employees, has since caused headaches to employees who have been overpaid, underpaid or not paid at all.