Hospital CEO cites funding issues as a barrier to “good-faith negotiations”
BPSU staff at the hospital have worked without a cost-of-living pay increase for 7 years – even as they dealt with the pressure of the COVID-19 pandemic.
Hospital CEO Scott Pearman points to the change to a fixed funding model and low revenues as a barrier to negotiating salary increases.
Commuters entering Hamilton this morning were made well-aware of the issue – being greeted by protest signs put there anonymously, highlighting the salary issues.
A series of about 18 placards had been positioned around Crow Lane roundbout, with sogans such as “BHB staff had no pay increase since 2018”, “Hey, PLP fund your only hospital”, and “BHB staff tired of living hand to mouth”.
In response, Scott Pearman, Bermuda Hospitals Board CEO and President praised the efforts of BHB healthcare staff, particularly during the pandemic, but he acknowledged the rising cost of living.
He said, “This is keenly felt by our BPSU staff, who include the nurses, doctors, allied health and non-executive administrative staff.”
“[Bermuda Public Services Union] staff have not had a cost-of-living increase since 2018.”
Mr Pearman said negotiations for the period since 2022 are open. Meanwhile, the Bermuda Industrial Union had one 3.75% increase for the last financial year, and negotiations for this year are close to completion.
Discussions continue to fund a wider pay increase, according to Mr Pearman, and he said Government understands that an uplift in staff salaries requires an uplift in revenue for BHB.
He continues, “The fixed funding model introduced in 2019 has meant BHB’s revenues have been eroded due to the increased cost of doing business with local vendors, and global increases in costs of medical supplies and equipment.”
“BHB has only managed to keep running through major internal savings campaigns, Government concessions, exhausting cash balances and the use of an overdraft.”
“BPSU salaries constitute 72% of our payroll expenses, therefore BHB has not been in a position to enter into good-faith negotiations with the BPSU until a salary uplift was accommodated in our budget.”
Mr Pearman says they await the National Budget before they can proceed with BPSU negotiations.
