Jackson Health System has taken another step in the process to avoiding financial ruin after it reached an agreement with a second union this morning.
Jackson and the American Federation of State, County and Municipal Employees have reached an agreement that will "reduce organizational spending and increase administrative efficiencies," according to a statement the two issued Friday.
Both sides said the agreement will hopefully keep both Jackson North and Jackson South hospitals from closing, which was a strong possibility just a few weeks ago.
Under the terms of the agreement, non-regular and temporary employees will be cut before full timers if layoffs are required, and employees will have to contribute five percent of their health care premium.
There will be no pay increases for next year, and scheduled increases will be reinstated in July 2011.
"Today is a great day, not only for those within the Jackson family but to all in the community that depend on our world-class medical care," said Viviene Dixon-Shim, president of AFSCME Local 1363, in the statement. "Hospitals are just buildings, but Jackson Health System is a family. And as a family, we found real solutions to the system’s current financial challenges."
With a $229 million deficit for the upcoming year, it was crucial for Jackson to reach agreements with both of its main unions. A similar deal was made last week with the SEIU union.
The agreement still must be ratified by union members and the Miami-Dade County Commission.
"I am very appreciative of AFSCME's willingness to come to the table and work collaboratively in helping to secure a successful future for Jackson Health System," said Eneida Roldan, president and CEO of JHS. "I look forward to our continued partnership as we move forward to strengthen this organization and its vital role in the Miami-Dade community."
