Hospitals won’t be penalized for failing to reduce executive costs, clerical staff may take brunt of cuts

In Ontario’s spring budget hospitals were asked to reduce executive costs by 10 per cent.

Now the province is saying there will be no penalty for hospitals that fail to do so.

“Hospital execs are supposed to reduce the costs of their office, but there won’t be financial penalty for those who fail,” said Andrew Chomensky, a spokesperson for Finance Minister Dwight Duncan.

OHA Presdient Tom Closson told the media that hospitals may have difficulty recruiting “top clinical talent” if Ontario is no longer competitive. Closson does not make the same argument about actual clinical staff. In the past year the OHA has been upset by modest increases awarded by arbitrators in the hospital sector.

Chomensky said the reductions in cost aren’t necessarily to the high executive salaries, suggesting hospitals may want to cut clerical staff instead to save the 10 per cent.

What started out as a response to high executive salaries appears to be quickly morphing into attacks on the lesser-paid clerical staff.

2 responses to “Hospitals won’t be penalized for failing to reduce executive costs, clerical staff may take brunt of cuts

  1. Jill McIllwraith

    How typical of hospital administration to again cut the people doing the work. It makes me wonder who will pick up the workload for those executives? Volunteers?

  2. Thanks for the opportunity to express an opinion on the above article.
    I belong to OPSEU 577 and have been working with out a contract since 2008.
    We attempted to negotiate for our members a contract and increase with the Hospital in line with what Central were offered. However, our CEO REFUSED to give us ANY increase, hence our contract and increase is in limbo. We go to arbitration 12 months AFTER our failed attempt to negotiate a contract with our Hospital. This 12 month wait is totally unacceptable in light of the published Sunshine list. On perusing this 2009–2010 Sunshine list, we see that every manager in our Hospital received between $6000 and $8000 increase. The CEO received a HUGE increase in salary. All these increases amount to a fortune of money yet there is no money to give us a miserable 2% increase? The mind boggles. Now they are offering people retirement packages in order to save money. Contrary to your article, clerical staff are not being offered the packages, but RPN and RNs. A very sad situation indeed.

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