Thursday 26 March 2015

Keeping paid-off executives

Janet Knox, the new president for Nova Scotia’s merged health care system, which comes into effect on April 1st, told CBC’s Information Morning on Wednesday, March 25th that 70 people had been given their notices. Then she said some were being rehired! This doesn’t make sense. If you give people notice you have to pay them severance. So firing people and rehiring them is a fiscal gift for these people. They’re getting lump sum payments and keep their jobs. They may have employment contracts which stipulated certain payouts, but those could have been negotiated away in exchange for continued employment.
As I wrote on February 24th I was told that it was a money-saving measure not to dismiss more executives. It wasn’t that they were needed, it was because it would have cost too much in severance. At the time it seemed questionable to continue the employment of executives simply because of the cost to get rid of them. Well, equally questionable is paying executives off and rehiring them for the job they’ve been bought out of. This is not an example of innovative thinking. 
- from helphealthcare

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