Doctors consider work bans, legal action amid claims of underpayment

Doctors in Victoria’s public hospitals may be set to launch industrial and legal action against some of the state’s public health services amid claims they are being underpaid.

Doctors could begin industrial action as they launch legal action against Victoria’s cash-strapped public hospitals over underpayment claims.

The Australian Medical Association’s Victorian branch last night voted to pursue action through the Fair Work Commission against most of the state’s 83 public health services.

The doctors’ union also decided to examine “collective actions” over its claim that hospitals are ignoring obligations of the medical enterprise agreements signed by the Andrews Government in late 2017.

While it stopped short of disclosing potential industrial actions, bans on working overtime and other measures could have a direct impact on the number of patients hospitals can treat.

Waiting lists could also blow out in the longer term if struggling health services are ordered to increase payments to staff.

The most serious allegation is that hospitals have refused to pay specialists for overtime since the agreements came into force on August 7, 2018.

Some of Melbourne’s major hospitals say they already face budget shortfalls of between $20 and $45 million under 2019-20 funding proposals, which could force to cut patient numbers.

AMA Victorian president Assoc Prof Julian Rait said he had departmental assurances hospitals had been fully funded to cover the EBA, however hospital managers told a very different story and doctors were caught in the middle.

“What we do know is that hospitals are not currently complying with their workplace obligations and hospitals are clearly responsible for this,” Assoc Prof Rait said.

The Fair Work action increases pressure on the Andrews Government, which has denied there is a health funding issue in recent weeks.

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Despite the Government awarding doctors pay rises of up to 19 per cent and new entitlements over 2018-22, the AMA claims hospitals have been unable to implement the full agreements due to a lack of funding.

The most serious claim is that hospitals have refused to pay doctors for overtime work that does not directly involve patient care since the agreements came into force in August 7.

Accusing public hospital executives of co-ordinating their refusal to implement the new conditions, the AMA claims hospitals are also failing to meet at least seven other obligations under the agreement.

Twenty-five hospitals have now requested financial bailout assurances from Victoria’s Department of Health in order to continue to operate while in potential debt.

Health Minister Jenny Mikakos spoke on the issue this morning but denied it would impact care for everyday Victorians.

“The advice that I have got is that it is not expected to have any impact on our health services at all,” Ms Mikakos said.

“They are not talking about imposing industrial action at this stage, is my understanding. They are looking at taking some claims forward to the commission, So that’s really a matter for them.”

When questioned about budgets Ms Mikakos said the state government had already provided “additional funding” for the doctors and nurses EBA agreements “but of course we continue to monitor any pressure that our hospitals are facing”.

Earlier this week she said the state Government was providing record funding to ensure hospitals had the full resources needed to provide excellent patient care.

“Victorian hospitals have never had this much funding before, we have provided record funding in every single budget since we have been in office,” she said.

However hospital sources have told the Herald Sun they are preparing upcoming budgets including mass redundancies and measures that could see hospital beds and theatres close.

Opposition industrial relations spokesman Nick Wakeling said public hospital patients “shouldn’t be left wondering if doctors will be available to treat them due to industrial action”.

“This nightmare may become a reality because of Labor’s financial mismanagement of Victoria’s public hospitals,” he said.

“With reports that hospitals are drowning in debt and unable to pay doctors, it is no surprise that doctors are considering walking off the job, or refusing to work overtime.”

“This is not safe for patients, and it puts the Victorian public’s health at risk.”

— with Alex White and Tom Minear

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