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Row over NHS chiefs' pay rises



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Published Date: 12 May 2008
HOSPITAL bosses were today asked to justify pay rises of more than 100 per cent.
The annual salaries of the chairman and some non-executive directors of Blackpool, Fylde and Wyre Hospitals NHS Foundation Trust have more than doubled, The Gazette can reveal.

The decision was made after the trust gained foundation status – meaning it can now make more of its own decisions, especially on spending money.

MPs and tax campaigners today questioned the rises which come at a time when below inflation pay offers have triggered strikes by rank-and-file civil servants.

Nurses have been offered a rise of 2.75 per cent for the next year.

Hospital chiefs have defended the increases, which range from £22,524 to £45,000 for chairman Beverly Lester and from £5,875 to £13,000 for non-executive directors.

They say board members are now committing more time to the hospital and the rises bring salaries in line with other trusts.

But Michael Jack, MP for Fylde, said while directors' pay should increase as they took on extra responsibilities, "doubling" the amount was "over-the-top".

He said: "They do not have to slavishly follow the pay rates paid by other hospital trusts.

"At a time of restraint in the public sector in terms of pay rates, I think people will find this difficult to understand."

Gordon Marsden, MP for Blackpool South, said he would be contacting the chairman about the issue.

He said: "I'm extremely surprised and concerned about the size of this increase and the way in which it was carried out. It was not put in the public domain and it raises questions about the openness and transparency in which the new foundation trust intends to operate."

And Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "This is a staggering pay rise, especially when compared to the two per cent that other public sector workers are being limited to.

"People want their taxes spent on caring for the sick, not feathering executive nests.

"Why is our money being poured into massive salaries for directors when what is needed is proper hospital cleaners?"

A spokesman for Blackpool, Fylde and Wyre Hospitals NHS Trust, said since becoming a foundation trust the chairman and directors had taken on more responsibilities and the governors – made up of the public, staff members and partner organisations – had voted for the increase.

Non-executive directors, including the chairman, are not full-time NHS employees.

The full article contains 416 words and appears in Blackpool Gazette newspaper.
Page 1 of 2

  • Last Updated: 12 May 2008 7:20 AM
  • Source: Blackpool Gazette
  • Location: Blackpool
 
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Tone from Thornton,

Thornton 12/05/2008 08:30:20
This is only typical of any large company, so why should the NHS be any different. Throw the workers a few crumbs then enjoy a huge pay rise after telling them 'we all need to show restraint'.
We all need to remember these people need the money to run their large cars now that fuel prices has gone crazy, the working pond-life can catch the bus!
2

Ilacsit,

Blackpool 12/05/2008 08:57:40
So they have to follow the other trust do they?,Well if the others get the sack we wont complain if they follow suit, Or put it another way GIVE THEM THERE MARCHING ORDERS, And let the nursing staff run the Hospital, they are on the front line and will do a fantastic job.
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ste,

POOL 12/05/2008 09:24:00
SHOULD BE ASHAMED OF THEMSELVES,AND YET PEOPLE ARE TURNED AWAY FOR BEDSPACES.GET A GRIP.
4

easyride,

12/05/2008 09:41:36
Same as a few yearsa go, all these directors got huge increases so they could comptete on the world stage.
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mjh@geccy,

Wyre 12/05/2008 11:20:31
I would think that the front line staff at the Vic will be horrified by this report when some of them earn just above the national minimum wage. The fat cats just get fatter. Salaries should be geared to how much an individual would be missed, nurses not arriving for work would be a problem, executives and senior management would not even be noticed. Like many industries it is almost impossible to assess what value these highly paid people actually contribute to the business. I hope the hope the Union reps are not going to sit idly by and do nothing.
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Communications Department,

Blackpool, Fylde and Wyre Hospitals NHS Foundation 12/05/2008 12:42:02
Please see the statement below from Blackpool, Fylde and Wyre Hospitals NHS Foundation Trust.

A spokesperson for Blackpool, Fylde and Wyre Hospitals NHS Foundation Trust, said: “The remuneration of the Trust’s Chairman and Non-Executive Directors has been reviewed as, since becoming a Foundation Trust, they have taken on additional, significant responsibilities. The required competencies have also changed tremendously, with the Chairman and Non-Executive Directors bringing specialist expertise to the Board. In addition, the Board of Directors is ultimately and collectively charged with the governance of the organisation for all aspects of performance.

“The remuneration of these members had not been reviewed for many years so an independent specialist on pay intelligence was commissioned on behalf of the Council of Governors to provide recommendations. A report was then presented to the Council of Governors, which is independent of Trust management and comprises elected representatives of the public, partner organisations and staff members, in March who voted in favour of the re-grading.

“A comparison with other Foundation Trusts of a similar size showed that the Chairman’s remuneration typically ranged from circa £40,000 to £50,000 and Non-Executive Directors remuneration ranged from circa £12,000 to £16,000. This review therefore brings the Trust’s remuneration in-line with the average.

“The necessity to recruit and retain high-quality Non-Executive Directors is essential. Having now re-graded these positions to reflect market rates, it is likely that any future increases will be in-line with the annual cost of living rise awarded to all NHS staff and will only be payable so long as the Trust is performing well.”
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commonsensical,

Blackpool 12/05/2008 13:32:32
The government constantly tells us that big pay rises cause inflation, so whatever the justification, these massive pay rises are wrong. They also set a bad example to staff, who will no doubt be told the trust cannot afford to pay them an increase above 2%.

So Gordon Marsden is concerned? I don't expect him to do anything, as challenging fat cat pay is totally against New Labour's Thatcherite agenda.

This is one of the reasons I opposed foundation hospitals.
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Frustrated,

St Annes 12/05/2008 16:40:20
Are the directors getting twice the amount of work as with this "extra responsibility"? Normally I would agree that non-executive directors need to be paid well if you are to get the best. But this is the NHS - not a hugely profitable company. There are surely some good business people who would happily dedicate some of their time at a rate less than they could normally get - if not doesn't the pay rise also come with a change in management?
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,

12/05/2008 19:52:43
Comment Removed By Administrator
Reason:
10

commonsensical,

Blackpool 12/05/2008 20:18:18
I find it somewhat hypocritical of Michael Jack criticising this pay award, when his party effectively invented the fat cat in the 1980s (don’t take this comment as support for Marsden and Labour, it isn’t).
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