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Jackson Health seeks $200M from unions to balance 2012 budget

Miami Herald, June 1, 2011

Jackson Health System executives announced Tuesday that they want to reduce salaries and benefits for the system's 11,100 employees by more than $200 million to help shrink a budget gap for fiscal 2012. CEO Carlos Migoya said he wants unions to accept cuts of 16% to 18% in total compensation but, as a trade off, he planned no layoffs. He didn't offer details of the kinds of cuts he envisions, but in the past Jackson executives have noted that Jackson's employee pensions tend to be much more expensive than the 401(k) plans most hospitals offer. Martha Baker, president of the SEIU local that represents many of Jackson's healthcare professionals, called Migoya's proposal "absolutely ridiculous." Union workers at the financially troubled public hospital system already gave up 8% last year in reduced pay and postponed raises, she said.