The Provincial Government recognizes the valuable contribution that nurses make to the health care system in the province and is committed to working with the Newfoundland and Labrador Nurses� Union (NLNU) to provide a reasonable and responsible salary increase while ensuring the deal is sustainable and in the long- term interest of the people of Newfoundland and Labrador. The Honourable Tom Marshall, President of Treasury Board and Minister of Finance, provided details today of the Provincial Government�s offer to the NLNU. He was joined by the Honourable Ross Wiseman, Minister of Health and Community Services.

The Provincial Government is offering nurses a 20 per cent salary increase over four years, at a cost of more than $140 million to the taxpayers of Newfoundland and Labrador. In two years that equates to a salary increase of 12 per cent, while the NLNU is asking for double that amount � 24 per cent over just two years, along with a package of other initiatives.

"The 20 per cent increase we are offering is fair while also ensuring that we manage our finances in a manner that is fiscally prudent," said Minister Marshall. "We recognize that due to our economic problems in the past, nurses have fallen behind other provinces with respect to salary. However, we feel this is a significant raise that will help to bridge the gap. Our economic problems didn�t occur overnight and they can�t be fixed overnight. It would be irresponsible for our government to provide increases that simply may not be sustainable in the long term. That would not only be unfair to nurses, it would be unfair to all our residents who are relying on us to manage the province�s finances in a responsible manner."

Over 70 per cent of the province�s nurses are currently at the top (Step 7) of the salary scale, with an annual current salary of $58,510. Under a salary increase of eight per cent in the first year and four per cent in each of the following three years, a nurse at Step 7 would receive an increase of over $12,500, with an annual salary of $71,082.

Under the NLNU proposal, nurses would receive a total salary increase over two years of $14,885, plus other proposals estimated at $14,000 on average per nurse over two years. The total cost of the NLNU proposal to the Provincial Government is estimated at more than $160 million over two years � approximately $20 million more than the Provincial Government�s offer � in less than half the time. In comparison, the Provincial Government is investing over $112 million this year in new and redeveloped health infrastructure, along with repairs and maintenance, and $88.8 million this year for new school construction and repairs and maintenance.

"We recognize the vital role played by nurses in the delivery of quality care to patients throughout our province," said the Honourable Ross Wiseman, Minister of Health and Community Services. "Our main priority is that these patients continue to receive the care they need and are not adversely impacted by the NLNU�s directions to nurses during this collective bargaining process. Our regional health authorities are monitoring the situation very closely in health care facilities and we have not been apprised of any negative impacts on patients."

Minister Wiseman added: "Based on some of the discussion on the public airwaves, residents of our province might be inclined to think that our government has done little for our nurses and has not been able to attract nurses to work in our health care system when that simply is not the case. In fact, in the last two years alone, we have recruited 300 of our provincial nursing graduates, which represents about 80 per cent of each graduating class. With our investment in our last budget to expand the number of seats in the nursing program, I fully expect that success to continue."

Minister Marshall said an eight per cent increase in the first year of a four-year contract would mean that Newfoundland and Labrador nurses would have a higher salary than nurses in Prince Edward Island and Quebec.

"Twenty per cent over four years is a significant raise," said Minister Marshall. "While our nurses would not be the highest paid in the country, our cost of living is lower than some other provinces. It is also important to note that in our effort to ensure that all Newfoundlanders and Labradorians have a higher standard of living, the Provincial Government has lowered personal income taxes so that we now have the fourth lowest personal income tax rates in Canada. This is an important factor that is often overlooked; it translates into more money in all residents� pockets, including our nurses."

Nurses are part of the 38,000 public service employees in the province. The Provincial Government estimates that a 20 per cent increase for all public servants will cost approximately $500 million at the end of a four-year contract. This brings the total salary expenditure by the province for public service workers to approximately $2.5 billion.

"Given the uncertainties that exist with the current economic climate and the vulnerability of oil prices, we must be prudent in managing the province�s finances," said Minister Marshall. "We must be able to offer a deal to all of our public employees that we can sustain in the long term without jeopardizing the province�s fiscal situation."

Minister Marshall said the Provincial Government is taking out ads, beginning tomorrow (October 18), to provide the public with the facts on its offer, along with the NLNU�s request, so they can have an informed opinion on the nurses� situation. The minister reiterated the Provincial Government�s commitment to working with the NLNU to provide a reasonable and responsible salary increase for the province�s nurses.

"We welcome the Newfoundland and Labrador Nurses� Union back to the table to continue negotiations," said Minister Marshall. "At the same time, we must ensure that any deal is sustainable and in the long-term interest of the people of Newfoundland and Labrador."

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Through the Provincial Government�s salary template, public sector unions are being offered a 20 per cent increase over four years (eight per cent in the first year and four per cent in each of the following three years). The Provincial Government�s offer to the NLNU is estimated to cost more than $140 million over four years.

Over 70 per cent of the province�s nurses are at the top of the salary scale (Step 7), with an annual current salary of $58,510. Under a salary increase of eight per cent in the first year and four per cent in each of the following three years, the salary would increase by almost $4,700 in the first year to $63,191. By the end of four years a nurse at Step 7 would receive an increase of over $12,500, with an annual salary of $71,082.

Proposed salary increases are one part of the investment the Provincial Government is making to recruit and retain nurses. Other initiatives already being undertaken by the province include:

The NLNU is requesting a package estimated at $160 million over two years � approximately $20 million more than the Provincial Government�s offer in half the time.

Included in the over 25 financial items the NLNU is requesting:

Seventy per cent of the province�s nurses are at Step 7 of the salary scale, receiving an annual base salary of $58,510. Under the NLNU proposal, these nurses would receive a 12 per cent increase in Year 1 of a two-year agreement, bringing the salary up to $65,532. 

In addition to the 12 per cent, the NLNU is requesting that a new step be added to the top of the scale (Step 8), which would give nurses an additional four and one-half per cent increase, bringing the total annual salary up to $68,481 in Year 1.

In addition, nurses with 20 years of service or more would receive a further four and one-half per cent increase, increasing the annual salary to $71,562 in Year 1.

And, if those same nurses were also pension eligible, they would receive a further three per cent increase, bringing their annual salary from $58,510 to $73,710.  This would result in a total increase of 24 per cent or $15,200 increase in just one year.

*Step 7, Nurse 1

2008 10 17                                                   10:10 a.m.