CEO Carlos Migoya wants unions to accept 16-18 percent cuts in total compensation in exchange for no layoffs. He said non-union employees will not receive the 3 percent cost of living increase scheduled for July or any other scheduled increases.
He has also asked the unions to voluntarily sacrifice mid-year pay increases written into their contracts. Martha Baker, president of the SEIU local, said union workers at Jackson gave up 8 percent of compensation last year. Mr. Migoya has hired consulting firm Allen, Norton & Blue to negotiate with the unions.
Jackson spends approximately 55 percent of total operating costs on labor; a Miami-Dade grand jury told Jackson successful hospitals spend around 40 percent.
Jackson expects to lose approximately $55 million this fiscal year, which ends Sept. 30.
Read the Miami Herald report on Jackson Health System’s budget plans.
Related Articles on Jackson Health System:
Florida’s Jackson Health System Eliminates 189 Jobs
Miami’s Jackson Health Prepares for Tough Labor Fight
Miami-Dade County Commissioners Consider Board Changes, Transition to Non-Profit for Jackson Health
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