Government Provides Clarification on Market Adjustment and Extended Earnings Loss Clauses

The Honourable Jerome Kennedy, President of Treasury Board and Minister of Finance, today provided clarification on two clauses that are part of collective agreements reached with a number of public service unions � market adjustment and extended earnings loss (EEL) - and reiterated government�s willingness to sit down face to face with the Newfoundland and Labrador Nurses� Union (NLNU) to negotiate a collective agreement that address recruitment and retention and other issues.

�We want nothing more than to see the situation resolved for the benefit of everyone � nurses, patients and the people of the province,� said Minister Kennedy. �Let�s get back to the table. This should be a team effort to come to resolutions so that everyone wins.�
Minister Kennedy said: �There has been concern expressed publicly regarding both the market adjustment and extended earnings loss clauses contained in collective agreements reached with public sector unions and in discussions with the NLNU who have not yet reached a collective agreement with government. It is important that the public understand the facts around both of these issues.�

Market adjustment is a clause that allows the provincial government flexibility to address issues of recruitment and retention throughout the province. If Government determines that it is unable to recruit or retain employees in specific positions at a particular geographic site, it may want to provide enhancements to attract employees beyond those outlined in the collective agreement.

�In the case of our province�s nurses, essentially what this means is that in some areas of the province where we are having difficulty recruiting and retaining nurses, we have the flexibility to offer incentives beyond what are currently provided,� said Minister Kennedy. �However, it doesn�t necessarily mean that government is providing a salary increase to one nurse recruited to an area and not other nurses working in a particular unit. This will be assessed on a case-by-case basis by government to ensure consistency.�

Minister Kennedy said the market adjustment clause is an important part of filling hard to fill positions. It provides stability within the health care system, which is something the NLNU has been looking to address.

�Nurses have very clearly stated that recruitment and retention is something they are very concerned about, as are we in government,� said Minister Kennedy. �And we all know that sometimes we have to get creative when filling hard to fill positions.

�I want to be very clear to nurses that this is not about hiring a nurse at a health facility from outside the province and paying that nurse more than a nurse already employed in our system. For it to be characterized it in this way is simply inaccurate and unfortunate.�

Minister Kennedy said the extended earnings loss (EEL) clause requires further clarification and explanation.

�It has been suggested that once an employee is injured on the job that his/her position will be automatically terminated after two years,� said Minister Kennedy. �This is absolutely inaccurate.�

After an employee is injured in a workplace accident, the Workplace Health, Safety and Compensation Commission (WHSCC) will adjudicate the claim for benefit entitlement under the WHSCC Act. Return to work planning is put in place to return the injured employee to the workplace as soon as possible. Both the employer and employee are under an obligation to cooperate with the efforts of WHSCC to return the employee back to the work place.

During the period when the employee is receiving treatments to return him/her to the workplace, the employee is earning benefits of the collective agreement, such as annual leave, service for severance pay, cost shared group insurance benefits, and pensionable service.

If WHSCC comes to the determination that the injured employee has reached maximum recovery and all return to work options have been exhausted, the WHSCC will place the employee on EEL. An injured employee could be placed on EEL benefits by WHSCC within a short time frame or within several years of the accident. There is no fixed time frame with respect to how long an employee may be treated by WHSCC before being placed on EEL.

From the time an injured employee is placed on EEL benefits by WHSCC (not from time the employee was injured) his/her position will be maintained for two years and after that time, he/she shall be terminated, if unable to return to work.

�Once an employee is placed on EEL, it is unlikely that that person will return to work,� said Minister Kennedy. �Therefore, that employee would no longer be in receipt of benefits such as sick leave, pensionable time and group insurance benefits, in accordance with the WHSCC Act, but would receive benefits through the WHSCC. Two years following an employee being placed on EEL, government would move to fill the position.�

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Media contact:
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 685-2646
tansymundon@gov.nl.ca