To form a joint with a palladium finished component, the palladium has to be
dissolved into the joint. This only happens with time and temperature which
is longer and higher than those used for other metal, e.g. silver, tin,
tin/lead, finishes.

I doubt whether the flux chemistry (regardless of whether in wave or paste)
if operating with your standard process has much to do with the joint
formation with palladium unless the chemistry is sensitive to the longer
time or higher temperature. There are flux chemistries currently in use that
will 'burn out' if an incompatible profile, i.e. longer time, and/or higher
temperature is used, if that is the case then you'll need to ask your
suppliers for a material with a wider operating window. It doesn't need to
be excessively wide just less sensitive to time and temperature, some of the
chemistries developed for lead-free assembly may be useful to you.

Best regards.

Andrew Hoggan
BBA Associates Ltd
www.bba-associates.com

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