Statement by the Ontario Hospital Association on the Interest Arbitration Award Respecting the Ontario Nurses' Association
Ontario Hospital Association
200 Front Street West, Suite 2800
Toronto, Ontario, M5V 3L1
Tel: (416) 205-1345 Fax: (416) 205-1360
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Monday, March 5, 2007
This morning, arbitrator Christopher Albertyn released an interest arbitration award under the Hospitals Labour Disputes Arbitration Act (HLDAA) in the matter of the 137 hospitals (“Participating Hospitals”), represented by the Ontario Hospital Association (OHA), and the approximately 50,000 registered nurses represented by the Ontario Nurses’ Association (ONA). This award will apply to the 2006-07 and the 2007-08 fiscal years.
Nurses are a critical part of Ontario’s health care team, and Ontario’s hospitals and patients value the skill and commitment that nurses bring to their jobs. However, the OHA is extremely concerned about the impact this award will have on Ontario’s hospital and health care systems, and has lost confidence in the process used to reach it.
The Award: Cost
The total cost to the Participating Hospitals of this award is 7% (an additional $224 million) over two years.
In the Hospitals’ view, this award is inappropriate in the current fiscal environment, and out of alignment with the freely-negotiated long-term agreements concluded in 2006 by the OHA and Ontario’s other major hospital unions, including the Canadian Union of Public Employee (CUPE), the Ontario Public Service Employees Union (OPSEU), the Service Employees International Union (SEIU), the Canadian Autoworkers Union (CAW) and the Professional Association of Internes and Residents of Ontario (PAIRO). It is important to note that before this award, at $71,214 per annum (not including benefits, premiums or overtime), Ontario’s senior full-time nurses were already the best-compensated in Canada.
According to the HLDAA, the employer's ability to pay in light of its fiscal situation and the extent to which services may have to be reduced in light of the decision or award are to be given careful consideration by the arbitrator. In Ontario, hospitals are subject to legally-binding, joint Hospital Accountability Agreements (HAAs) negotiated with the Ministry of Health and Long-Term Care. These agreements set out specific funding levels for each hospital, and oblige each hospital to balance its budget out of that funding envelope. The arbitrator appears to have ignored this reality and, as noted above, has produced an award that is inappropriate in the current fiscal environment. As a result, the OHA is concerned that the sizable financial obligations imposed by this award may jeopardize the ability of certain hospitals to meet the balanced-budget requirements of their legally-binding Hospital Accountability Agreements.
The interest arbitration process is designed to replicate results which could have been reached in freely-negotiated agreements. As noted above, the OHA and five of Ontario’s major hospital unions were able to conclude freely-negotiated, long-term agreements. This award in no way replicates those agreements. Awards such as the one issued today bring the interest arbitration process contained in the HLDAA into disrepute.
The Award: Scope
The OHA is concerned that the arbitrator appears to have substituted his own judgment regarding the use of N95 respirators during an outbreak of pandemic influenza for that of the Provincial Infectious Disease Advisory Committee (PIDAC). This group of scientific experts is currently examining, and has yet to provide guidance on, the appropriate level of Personal Protective Equipment (PPE) to be used during an outbreak of pandemic influenza.
The OHA and its Member hospitals believe that staff safety must be a high priority during an emergency situation. For that reason, the OHA believes that matters such as PPE are best determined by the experts – including the PIDAC and the Ministry of Labour, the ministry responsible for enforcing the Occupational Health and Safety Act and ensuring that it is applied consistently to all affected employees – and should not be the subject of an arbitration award.
The Interest Arbitration Process
The OHA’s bargaining goal is always a negotiated settlement that recognizes that both parties have interests that need to be addressed and a perspective that needs to be respected. The OHA continues to support the principles that underpin the HLDAA. However, this award demonstrates that key aspects of the HLDAA interest arbitration process are deeply flawed. As a result, the OHA has lost confidence in the ability of the current interest arbitration process to deliver results which could have been achieved in a freely-negotiated process. It is clear that significant reform to the interest arbitration process is needed.
The interest arbitration process is supposed to result in awards that are consistent with those which could have been reached in freely-negotiated agreements. As noted above, awards, such as the one issued today, are not consistent with this principle and bring the interest arbitration process contained in the HLDAA into disrepute
Addressing Key Issues
As noted, it is important that the interests and perspectives of both parties be addressed during an interest arbitration. In this award, the arbitrator chose not to deal with any major employer issues, such as the issue of redeploying existing, qualified nursing staff within a hospital in order to fill vacant positions and meet patient care needs. The OHA believes that, by not addressing this issue, the award ensures that there remains an incentive for highly-skilled nurses to leave their profession at a time when the hospitals in Ontario are actively recruiting nurses.
The OHA believes that key issues of both parties must be equally addressed during an interest arbitration process in order to maintain confidence in the process.
Next Steps:
The OHA plans to discuss this award with its Members in order to better understand its effect on Ontario’s hospital and health care systems, and will then consider next steps.
For further information:
OHA Public Affairs
416-205-1305