Jackson & Unions Agree On Contract Cuts

MIAMI (CBS4) The executive committee of Jackson Memorial Hospital's governing board approved changes to the current contracts the hospital has with four unions. The contractual changes essentially lower the salaries of about 10,000 workers by five percent. The Hospital contends the salary cuts will save the beleaguered system $61 million per year.

Three contracts with the Service Employees International Union and a contract with the American Federation of State, County, and Municipal Employees will now go to the Miami-Dade County Commission on Tuesday for approval.

According to CBS4 news partner the Miami Herald, executives were hoping to get roughly $68 million per year for the revisions. Jackson CEO Eneida Roldan said the shortfall is expected to be made up by improvements in billing and collections.

The 5 percent pay cut, along with no merit increases and other provision will last through the end of the contracts in September 2011, according to the Herald.

In return for supporting the changes, Jackson agreed to not lay off any more than the 650 union positions already announced through the end of September, the Herald reported. Layoff plans include a bumping process that allows workers with seniority who are in position to be laid off to "bump" those with less seniority.