Executive Council
February 12, 2009Government 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
2009 02 12
2:25 p.m.