Doctors accept two-year wage freeze

The Newfoundland and Labrador Medical Association has agreed to a two-year wage freeze as part of its new deal with the provincial government.

The NLMA announced details of a new memorandum of agreement Wednesday. The deal is retroactive to last October, and runs until Sept. 30, 2009.

Under the agreement, both fee-for-service and salaried physicians will see no increases in their remuneration for the first two years of the four-year deal.

The budget for physician salaries will increase by two per cent on Oct. 1, 2007, by an additional one per cent on April 1, 2008, and by three per cent on Oct. 1, 2008.

"We respect government's restraint," said NLMA president Tom Costello.

The deal includes other benefits for physicians.

The budget for call for compensating physicians to be available for emergencies will climb to $11.5 million over the life of the contract. As well, salaried physicians will earn more for both call and after-hours services.

Costello said many practitioners himself included are expected to be on call as part of their regular duties.

"Call has to be financially attractive, especially if your numbers are low," said Costello, who practises in Labrador City and Wabush.

The increased package will help with retaining doctors in the field, and with recruiting new ones, Costello said.

The freeze on salaries and fees is not unexpected, as Premier Danny Williams served notice last October that the provincial treasury could not afford a richer deal.

• FROM OCT. 14, 2005: Expect pay freeze, Williams tells doctors

The provincial government, although having conquered massive annual deficits, is heading into bargaining with its major unions.

Consequently, the NLMA deal may influence the course of those talks.

The physicians' deal was negotiated with less drama than the previous round of negotiations.

In 2002, many doctors closed their offices for an 18-day strike that shut down most primary care and caused numerous clinics and services to be cancelled.

Ultimately, the physicians' disagreement with the then Roger Grimes administration was sent to arbitration, with the NLMA winning a $54-million award.

One of the issues that emerged in latter stages of the current talks a provincial government proposal to register doctors, which the NLMA saw as an infringement of its members' independence was removed from the table.

• FROM JAN. 26, 2006: MDs anxious about mobility as talks drag on