“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self-interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.” - Adam Smith, The Wealth of Nations
The people of this province, particularly our women, can breathe a collective sigh of relief this morning. The Premier has finally surrendered to the demands of three gynecological oncologists who have been holding us hostage for the past month, threatening to take their ball and go home if taxpayers didn’t increase their already hefty salary packages. Lesa Dawson, Cathy Popadiuk and Patti Power got what they wanted- an extra $73,000 per year, as well as an allowance for additional training, increased support staff, and more operating room time.
Ostensibly, their plight was all about “patient care” and their supposed inability to give proper treatment with the resources at their disposal, but let’s call a spade a spade- it was about money. While other legitimate issues were discussed, a major focus of every interview, every news release, and every statement that I have seen has been cold, hard cash. The doctors felt they were underpaid when compared with their colleagues in other provinces, and they were right. But let’s not get carried away- even though paid less than their counterparts, at salaries in excess of $250,000 per year they were still in the top 1% of income earners across the country. Our phine physician phriends weren’t exactly worried about making ends meet or secretly looking for dented cans at Dominion.
These physicians did what they had to do to further their respective self interests, and I respect that. In fact, there could not be a more perfect example of free market economics at work. The physicians are in very short supply and are, for current purposes, irreplaceable. They provide a valuable and essential service that few others can replicate. They knew this and exploited their scarcity by threatening to go where they could earn more money if their demands were not met, Hippocratic Oath be damned. It’s almost beautiful in its simplicity, the fundamentals of the free market and the free flow of labour dancing a tragic tango, or at least the Macarena. The doctors weren’t afraid to hold the women of Newfoundland Labrador hostage and wouldn’t relent in their demands; they refused to settle for the free pizza and a phone call and held out for the million dollars and a chopper. Well played, docs.
There are lessons to be learned here for those of us wishing that we could find a way to get a nice, big raise:
- Be unique - Dawson, Popadiuk and Power are highly specialized and skilled individuals in high demand across the country. If they had left, the chances of finding even one person to fill the void would be slim. When you’ve got a unique skill that is in demand, you’re in a great position to bargain for better compensation.
- Be indispensable - The loss of these three doctors would have been devastating for certain cancer patients in this province. It was literally a matter of life and death. Very few of us occupy a similar position, but that doesn’t mean that you can’t find a way to make yourself essential to your employer’s operations.
- Make threats - Not exactly the nuanced and tactful way to approach a situation, but the doctors’ ultimatum paid off. Make your intentions and alternatives well known, but beware- if you’re not sufficiently unique and indispensable (see above), boss man might just call your bluff and send you packing.
- Join a gang - Not a street gang, but a small group of others in a similar position. If just one doctor had threatened to leave, that would have been bad but not devastating- the triple threat of losing all the gynecological oncologists escalated the threat and forced the government to take it seriously.
- Spin, spin, spin - No, not literally- that will just make you dizzy and may cause you to fall and knock your head on the corner of your desk. Not exactly a great way to start negotiations. Rather, spin your story to avoid the greed angle (it’s as unflattering as vertical horizontal stripes), just as the doctors did with the whole “patient care” tripe. Paint yourself as only seeking fair and competitive wages, not a new boat or a flat screen TV. You’re the victim here, and you’re simply trying to get what is just. Try to keep a straight face.
- Stick to your guns - If you’ve made demands and they’re not met, man up and follow through. Your credibility depends on it. The looming deadline and unwavering position of Dawson, Popadiuk and Power turned the negotiation into a game of chicken, and they held the upper hand. Be prepared to do what you gotta do.
Just to be clear, I think Premier Williams did what he had to do in a tough situation. It sets a horrible precedent, but the alternative of leaving our province without needed specialists was even worse. I also have no objection to the tactics used by the doctors, and I offer my congratulations on their success- frankly, I have done the same thing myself and will do so again in the future if needed. My only issue comes from their attempt to veil their actions in the guise of “patient care” and to paint themselves as hapless victims of an unconcerned system. Their actions were motivated by self interest and greed, plain and simple, and it is disingenuous and patronizing to portray it in any other way.
Greed is good, but let’s call it what it is.
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{ 5 comments… read them below or add one }
MGL: I’m not sure if this is a true example of free market economics at work. As I understand things, these docs had incomes that were set by the government. Whether you believe in socialized medicine or not, in a true free market these docs would have based their salaries on what patients would be willing to pay, over and above what insurance reimbursed. In a true free market, you get to negotiate prices with your customers, not the government.
Good point Mr. ToughMoneyLove, but in this case the government is the customer. While the patients are the beneficiaries of the doctors’ care, the service contracts are between the government and the individual doctors. The government involvement isn’t in the capacity of a regulator, but as an employer like any other. There is ample competition, too- these doctors are highly sought after and actively recruited by other health care agencies, all of which are free to set their own compensation packages.
MGL,
We have gangs here in the states too, we call them Unions.
I don’t think the doctors were being greedy. They’re underpaid by national standards, so why wouldn’t they want a raise? It’s well deserved. And I think they’re genuine when they express concern that their patients are suffering.
Oh, and the million dollars and a chopper thing? That made me laugh.
Who says you need a union for collective bargaining?
I suppose at some level they must have been if not underpaid then at least not grossly overpaid. It might have taken a lot more than $73k/yr, but at some point their demands would have been outrageous enough that the government could have let them walk and then contracted with neighbouring provinces or the states to do their procedures (providing they weren’t of a time-critical nature). Then they’d have to pay the transportation and hospital and/or hotel fees for the affected patients in addition to the rate the neighbouring doctors were charging. There would be a political cost to both sides if they went that route…