Statement by the Ontario Hospital Association Regarding OPSEU Arbitration Award

Ontario Hospital Association
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Toronto, Ontario, M5V 3L1
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Wednesday, June 29, 2005

TORONTO - The Ontario Hospital Association (OHA) today released the following statement regarding the interest arbitration award issued yesterday evening by arbitrator Stanley M. Beck involving 40 participating hospitals represented by the OHA and the Ontario Public Service Employees Union (OPSEU):

"The Ontario Hospital Association is very disappointed with the arbitration award handed down yesterday evening by Stanley Beck involving participating hospitals represented the OHA and OPSEU. Ontario’s hospitals are facing extremely serious financial challenges and this award will only cause cost pressures to grow.

The purpose of binding arbitration is to replicate the outcome of what would have been achieved in a freely bargained environment. This particular award exceeds what has been recently negotiated by hospitals and other organizations in Ontario’s broader public sector including:

OHA’s recent settlement with its service employee groups, the Canadian Auto Workers, the Service Employees International Union (SEIU) and the Canadian Union of Public Employees (CUPE);
The Ontario government’s recent agreement with OPSEU; and
The framework agreement reached by Ontario’s teachers and school board across the province.

The OHA/OPSEU award takes effect retroactively from April 1, 2004. It awards a general wage increase of 3% for the 2004/05 fiscal year and a further 3% for the 2005/06 fiscal year, as well as requiring increases in other areas such as premiums and benefits. The OHA is currently assessing the economic impact of this arbitration award and its potential effect on hospital finances as a whole.

This award has an immediate impact on 40 participating hospitals covering approximately 6,500 employees. Generally speaking, it covers paramedical employees such as lab technologists, pharmacists, physiotherapists and other allied health professionals."

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