Government comments on NLMA Arbitration Ruling

Health and Community Services Minister Gerald Smith and President of Treasury Board and Minister of Finance Joan Marie Aylward today commented on the decision of the arbitration ruling involving the province�s physicians. Government and the Newfoundland and Labrador Medical Association (NLMA) agreed to binding arbitration in October 2002 to conclude an agreement for the next three years. The ruling of the Arbitration Panel was received by government on April 15.

"This process was agreed upon in good faith by both parties and we are pleased that the process is now concluded. It is now time to move forward in cooperation with our physicians, and finalize a new agreement," said the ministers. "Government has committed to abide by the ruling of the arbitration panel, and we will live up to that commitment and ensure our physicians receive this award."

Highlights of the ruling include:

• a total increase of $54.2 million to the Physician Services Budget over the next three years which includes:

• a parity award of $23.9 million. Fee for service compensation will be increased to 90 per cent Maritime parity in year one, 92.5 per cent parity in year two, and 95 per cent parity in year three. (Parity is determined from the parity review exercise completed by John Tarrel, actuary.)
• a general increase of $10.5 million. All physician groups to receive a general increase of 1.5 per cent in year one, 3 per cent in year two, and 3 per cent in year three to maintain Maritime parity;
• salaried physicians award of $7.7 million which equates to an 18 per cent increase over three years (8 per cent in year one, 5 per cent in year two, and 5 per cent in year three);
• an additional $5 million to implement a universal on-call payment policy for a total annual budget of $9.5 million;
• an award of $1 million for the development and implementation of after hours emergency coverage in St. John�s; and,
• the implementation of a Service Coverage Committee to address issues of service coverage throughout province.

Both government and the NLMA have 60 days to notify the Arbitration Panel of any clerical errors or to seek clarification of any elements of the award. The arbitration ruling is binding on both parties and was guaranteed by government in advance of the arbitration hearings. It was enacted into legislation last fall.

"The arbitration panel had a challenging task of analyzing and ruling on a very complex issue. We feel they completed this task fairly and with consideration for both sides," said Minister Aylward. "Our next immediate steps are to fully review the ruling and determine the full implications."

Minister Smith explained that government and the NLMA have already taken steps to build a new relationship. "Immediately following the conclusion of the job action by physicians, government and the NLMA formed the Physician Services Liaison Committee. We agreed to the establishment of this committee to provide a mechanism whereby medical issues of mutual concern can be addressed cooperatively between the Government and the Association. We held our first meeting the day after the end of the job action, and we have continued to have regular meetings," he said.

Ministers Smith and Aylward thanked and commended the Arbitration Panel for their work and their fair treatment of an in-depth and complex issue.

A copy of the ruling is available at www.gov.nl.ca/publicat/2003/NLMAArbitration.pdf

Media contact:
          Diane Keough, Health and Community Services, (709) 729-1377
          Glenn Bruce, Treasury Board, (709) 729-6793

2003 04 16                                      10:35 a.m.