Discussions held between government and representatives of home support agencies

Gerald Smith, Acting Minister of Health and Community Services, advises that further discussions were held earlier today between representatives of his department and representatives of the home support agencies to discuss the agency rate for home support care.

"My department has received the additional information I requested from the home support agencies to back up their position that government is not providing the agencies with the funding required to provide the wage increase to their home support workers," said Minister Smith. "We are now analyzing this information."

Government announced in Budget 2001 that $4.8 million is being allocated to provide for a wage increase of 20 per cent to both self-managed home support workers and those who are employed with agencies. The wage increase is being provided in two installments - the first raise was effective June 1, and the second increase will be passed on to the workers on December 1. Government has provided the increased funding to support the pay increase for self-managed workers through the home support clients who directly hire and compensate their workers.

Minister Smith said government is continuing its discussions with representatives of the home support agencies to determine the level of funding required so that workers will receive the wage increase.

"We want to ensure that home support agencies are able to pass on these increases to their workers without any negative impact on administrative costs," said Minister Smith. "Once we have reached an agreement with the home support agencies, the increase to the workers will be retroactive to June 1, 2001."

Government currently spends $43 million annually for the Home Support Program which provides services for about 2,700 seniors and people with developmental and physical disabilities. The wage increase is government's response to compensation concerns expressed by home support workers.

Media contact: Carmel Turpin, Communications, (709) 729-1377.

2001 07 11                                                        4:10 p.m.