March 24 - Salary Increases eliminated for Senior Managers, Others See Reductions
March 24, 2009
Salary Increases eliminated for Senior Managers, Others See Reductions
CEO, VPs accept 0%; Directors and Managers increases limited to 1.5% to 2%
Reductions save LH almost a quarter of a million dollars – softening need for patient care reductions
(Oshawa) In its continued efforts to reduce the hospital network’s projected deficit and to minimize impacts to patient care, Lakeridge Health announced today a zero (0%) percent wage increase for the hospital’s CEO and Vice-Presidents in 2009/10. Directors will see their increases capped at 1.5% while managers will be limited to a 2% increase.
“Our management team is made up of very talented and dedicated professionals who work tirelessly making our hospital network work – they care deeply about providing quality patient care to our community,” said Doug Allingham, Chair of Lakeridge Health Board of Trustees. “Although we are concerned about losing our highly valued, sought after and talented staff, we recognize that we must do everything possible to minimize negative impacts on front-line patient care.” he added.
Senior management salaries at Lakeridge Health are in line with other hospitals. As a sector included in the annual Public Sector Salary Disclosure, hospitals rank consistently at the bottom for reported earnings (source: Ontario Hospital Association). Due to overtime and increasing salary scales, it is expected that almost half of Lakeridge Health’s Public Sector Salary Disclosure list will be made up of front-line caregivers. In 2009/10, nurses across Ontario hospitals will receive a 3% increase and provincial contracts for other unionized hospital staff expire this year with negotiations ongoing.
“The senior management team (CEO and Vice-Presidents) unanimously supported the elimination of their salary increases. And while we are concerned about the recruitment and retention impact of the narrowing gap between front-line care professionals and management, I am confident that our managers and staff support our desire to protect as many patient care activities as possible,” said Kevin Empey, President and CEO. Over the past months, many administrative positions at the hospital have been eliminated, combined and/or reduced in salary scale with remaining staff asked to take on additional workloads.
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For more information:
Leigh Winn-Kruck
(905) 576-8711, ext. 4317
lwinn-kruck@lakeridgehealth.on.ca