UMC workers taking 2 percent pay cut
About 3,600 University Medical Center workers will take a 2 percent pay cut in a binding fact-finding decision that will save the financially strapped county hospital about $5.5 million a year.
The pay reduction covers the final two months of the contract that expired June 30 and will continue until the hospital and union work out another labor agreement.
UMC officials say that the pay cuts will be retroactive to May 3 and that they plan to deduct the money from employees’ paychecks over the next two months. Union officials contend that the effective date has yet to be determined.
The fact finder noted the hospital’s tough financial situation in a written opinion that both parties agreed would be binding.
“Considering all factors, it is concluded that the employer’s wage proposal should be accepted,” the mediator wrote. “The large operating deficits have made it extremely difficult to maintain existing wages, even for the last two months of (fiscal year) 2011.”
Union officials said they and UMC workers were disappointed with the outcome.
“The UMC folks, compared to private (hospitals), are paid lower than anywhere else in the valley,” said Nick Di Archangel, spokesman for the Service Employees International Union 1107.
Di Archangel was unable to supply wage data on UMC workers late Monday.
About 3,300 union workers and about 300 nonunion employees will be affected.
UMC has struggled with a deficit for years largely because it treats poor and uninsured patients. Last year, the hospital ran more than $70 million in the red.
Aside from wage reductions, workers will see the maximum for merit-pay raises shrink to 3.4 percent from 6 percent. The workers currently receive no cost-of-living raises.
Commissioner Chris Giunchigliani had mixed sentiments about the decision.
Research has shown that UMC nurses already are paid less than nurses at local private hospitals, so it is understandable that they are upset about taking a pay cut, Giunchigliani said.
However, UMC is in dire need of any money it can get to improve medical care, emergency services and outdated information technology, she said, noting, “The $5.5 million is absolutely needed for patient care.”
Commissioner Tom Collins repeated his longstanding argument that workers’ benefits and days off should be trimmed, not their pay.
“There is a perception by many people that because of the hard times, public employees should take a pay cut,” Collins said, arguing that it was shortsighted. “Public employees spend money and support businesses throughout the community.”
The mediator said that managers and other county employees, including firefighters, have taken 2 percent cuts, so it was reasonable for UMC workers to follow suit, especially because the hospital was ailing financially, Di Archangel said.
“We sort of expected this ruling,” he said. “It doesn’t mean we’re happy about it.”
Contact reporter Scott Wyland at swyland@
reviewjournal.com or 702-455-4519.
