Edwin MacDonald says the Phoenix pay system has created financial stress for thousands of public servants across Canada, and has led to a "big, big, mental health problem" in government.

But he said it has also shown the dedication of public servants.

"There's this image in Canadian society of the lazy public servant," said MacDonald, an employee at Veterans Affairs Canada.

"I really hope the lessons from Phoenix have killed that idea because right now a quarter of a million people come to work every day when more than half of them don't get their correct pay.... Nobody else in Canada would report to work if their boss was not giving them their paycheque."

Edwin MacDonald says he has sought mental health treatment because of financial stress caused by the Phoenix pay system. (Nicole Williams/CBC)

MacDonald was one of dozens of Public Service Alliance of Canada members gathered at Veterans Affairs in Charlottetown on Wednesday to raise awareness of the problems federal public-sector workers are facing, and to support the members who are bargaining with government on a new contract.

When you have people who look at their pay stub ... and just burst into tears, how are they going to provide service to Canadians? — Edwin MacDonald

It was one of several rallies held throughout the Atlantic region.

MacDonald said he hasn't had the correct pay since the Phoenix system came into effect two years ago, sometimes being paid too much and having the excess clawed back, and other times not being paid enough. He said it has made it difficult for household budgeting.

"Payday has become a lottery," he said. "I've had to seek some mental health treatment because of all the pay problems and financial issues Phoenix has caused for me and my family."

Debbie Buell, president of the local union of Veterans Affairs employees in Charlottetown, says she hopes the rally will raise awareness of the issues facing public servants as they negotiate a new contract with the federal government. (Nicole Williams/CBC)

MacDonald said he's not alone.

"When you have people who look at their pay stub ... and just burst into tears, how are they going to provide service to Canadians? And yet every day they still come to work, do their job, never knowing whether or not they're going to get paid."

Debbie Buell, president of the local union of Veterans Affairs employees in Charlottetown, said as a new contract is negotiated with the federal government, she hopes Wednesday's rally raises awareness of issues such as the Phoenix pay system.

"Want it fixed soon," she said. "We've had lots of trouble with people getting paid properly, people being paid on time, people being paid at all."

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With files from Nicole Williams