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Landmark agreement struck on doctors’ pay: 9.3 per cent increase over 12 months

21 July 2006

AMA Victoria President Dr Mark Yates today announced Victoria’s public hospital doctors had won a 9.3 per cent pay increase, but warned it was only the first step in ensuring Victoria could retain and attract doctors.

“The two year agreement provides a reasonable immediate improvement to pay and conditions for our public hospital doctors and will result in a 9.3 per cent increase in pay over the first 12 months,” Dr Yates said.

“The agreement meets the majority of claims AMA Victoria put forward in October last year. This agreement is a landmark, recognising for the first time the importance of continuing medical education and training to the profession to maintain high quality medical services.

The government’s recognition of the importance of valuing doctors is welcome. However, Dr Yates said much more still needed to be done.

“The signing of the agreement is a significant step forward, but it is only the first step in
ensuring Victoria can continue to retain and attract quality doctors to our public hospitals.

“The initial improvements to doctors’ terms and conditions are a holding measure. Critical to the agreement is the government’s commitment to an independent ministerial review addressing pay parity with other states and other factors impacting on the retention of the medical workforce in Victoria.

“Commitment to the review, starting in September, is recognition by the government further improvements must be made if we are to ensure Victoria’s public hospitals have continuing and appropriate doctor numbers.”

The final report, including recommendations on remuneration levels, infrastructure requirements and utilisation of medical staffing and resources will be provided to the Health Minister by September 1, 2007.

Key recent pay increases in Queensland have come from similar reviews. Dr Yates said AMA Victoria, the Department of Human Services and the Victorian Hospitals Industrial Association, will agree on the appointment of the reviewer.

“In the interim, the Health Minister has given a commitment that the agreement will be fully funded. It is vital hospitals immediately and fully implement the agreement,” Dr Yates said.

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