Labour federation calls for public inquiry into travel nursing contracts

The NB Federation of Labour is the latest group to call for a public inquiry into contracts for temporary nursing services.

Between early 2022 and February 2024, the province had paid out roughly $174 million to private, for-profit temporary staffing companies, according to New Brunswick’s auditor general. The audit found that the contracts suffered from various irregularities and “did not demonstrate value for money.”

The travel nursing scandal has provoked indignation from organized labour, notably due to the wide disparity between wages earned by nurses in the public system and fees paid to private contractors.

One company, Canada Health Labs, charged $306 per hour to have a registered nurse or licensed practical nurse on the floor, according to the auditor general’s report. Under current collective agreements, RNs earn between $36.41 and $46.13 while LPNs earn between $30.22 and $32.46, the report states.

On Monday, the NB Federation of Labour issued a statement saying a commission of inquiry would ensure “that those responsible for these failures are held accountable.”

“The hundreds of millions of dollars spend on these for-profit providers would have been better spent on recruiting and retaining full time nurses in the provinces,” NBFL President Danny Légère said, adding that New Brunswick’s nurses are the “lowest paid in the country.”

An independent commission would have the authority to call witnesses to testify under oath. Légère said that would be necessary, “because there is obviously going to be some hesitant witnesses.” He said an inquiry would also help restore trust in the public health care system and the political system.

Recently a legislative committee motioned the province to call a public inquiry into the contracts, but the Higgs government ruled out the idea, saying it would be “expensive and time-consuming.” The NB Nurses Union has also called for an inquiry.

“We now know more about the outrageous exploitation New Brunswick taxpayers are currently experiencing at the hands of these nursing agencies, but we deserve more answers,” NBNU President Paula Doucet said in a statement.

The auditor general’s report found that Vitalité Health Network was the biggest spender on travel nursing contracts, paying out more than $123 million between early 2022 and the end of February 2024. Horizon Health Network spent nearly $48 million on travel nursing contracts, while the Department of Social Development spent nearly $3 million.

A contract between Vitalité and Canada Health Labs doesn’t expire until February 2026, and includes an auto-renewal clause that allows the service agreement to continue for up to five years if the company fulfills certain language requirements. Vitalité refused to cooperate with the auditor general’s office, denying it access to internal audit reports, according to the auditor general’s report.

Labour leaders discussed the travel nursing scandal in the latest edition of the NB Update. Check it out here:

David Gordon Koch is a journalist with the NB Media Co-op. This reporting has been made possible in part by the Government of Canada, administered by the Canadian Association of Community Television Stations and Users (CACTUS).