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PHSA rolls back management pay hikes

Health authority CEO blamed for contravening provincial government wage freeze

Management pay hikes that violated government policy have been rolled back at the Provincial Health Services Authority.

Board chair Wynne Powell said the three-per-cent raises for 187 non-union staff are being rescinded and steps are being taken to prevent any future repeat of the approval.

The move is expected to avert an increase in payroll costs of $660,115 per year.

Lynda Cranston resigned without severance as PHSA president and CEO June 21, although she is staying on to assist with a transition until her end-of-July retirement.

"I fear the action of PHSA’s former president and CEO may have let our patients and the people of British Columbia down," Powell said in a statement. "Understandably, the board is very concerned and, on behalf of the board, I sincerely apologize."

The PHSA runs B.C. Children's Hospital, B.C. Women's Hospital, the B.C. Cancer Agency and various other specialty or provincial services.

Health Minister Terry Lake has been sharply critical of the pay hikes, which contravened last fall's provincially ordered freeze on public sector management salaries.