Residential care facility in Vernon announces plan to contract out

Kaigo, which operates Heritage Square, a residential care facility in Vernon, has announced that they will be contracting out care-aides and Licensed Practical Nurses effective June 15, 2010.

"This is a blatant move to get out of the health sector facilities agreement so that they can bargain lower wages," says B.C. Government and Service Employees' Union staff representative Debra Critchley.

"The Liberals opened the door for this kind of maneuvering with Bill 29. This is part of a long-term effort to drive wages down in a sector that is already facing recruitment and retention problems."

The news creates instability and uncertainty for the 58 staff - 54 of which are women - and for the residents.

"Some of the staff have worked at the facility for over 20 years and they are devastated and scared about what the future holds," says Critchley.

Kaigo claims that budgetary pressures are due to an unfair funding formula from the Interior Health Authority (IHA).

"The amount that IHA is taking from private care residents will increase but the facilities will not see that money," says Critchley.

"So seniors are paying more for the same level of care. Meanwhile, independent health facilities are under pressure and taking drastic measures such as contracting out to meet their budgetary constraints."

Earlier this year, Kaigo pulled out of their contract with Advocare for support services in order to avoid paying newly negotiated wages.