Editorial: Layoffs not justified while others get bonuses

Hopefully they enjoy that new Mercedes and the beach house,
because while they received tens of thousands in bonuses, it was
decided 400 of their co-workers should lose their livelihoods.

The UCLA Medical Center is expected to cut approximately 400
jobs from its payroll as soon as possible. Specific details about
which jobs will be cut are not available, although the Los Angeles
Times reported that most of them would not be front-line medical
personnel.

But the cuts stand in stark contrast to the pay and bonuses of
top Medical Center executives. Seven of the top executives at the
Medical Center make over $200,000 a year, and all earned bonuses
ranging from $21,000 to $40,000.

A total of 13 executives earned bonuses which totaled $343,000
““ and these numbers do not include another $83,000 in bonuses
that the Center plans to disburse to new chief financial officer
Mitch Creem.

Considering the anticipated job cuts ““ and the hefty
salaries ““ the bonuses are insulting.

But they are made worse by the fact that the Center did not even
meet its expected financial goals. The Center had budgeted a $30
million profit but fell short by more than $18 million.

And the less-than-spectacular performance comes even after the
Center hired Hunter Group for $4.7 million as an outside consulting
unit to help it improve its financial prospects and practices.

Aren’t bonuses supposed to be given to officers who have
exceeded their goals, or at least have met them?

Many of the people who will lose their jobs as a result of the
cuts probably have salaries significantly smaller than many of the
$30,000 dollar incentives recently awarded. Many of these people
““ many AFSCME union workers ““ may make as little as
$15,000 a year.

Admittedly, the lower-than-expected profits are not entirely
within its control. The Center has said it is the victim of outside
forces, including county hospital closers, which have sent more
indigent patients its way.

And it is also true that UCLA Hospital executives do not make
more than their colleagues with comparative jobs ““ in fact,
several other UC hospitals pay their top people more.

But working for a hospital ““ especially a renowned public
institution like UCLA ““ should not just be about the
paycheck. The health care section has become a cut-throat business,
but it is nice to hope, at a time of budget cuts and
belt-tightening, that some people care about more than the bottom
line.

Administrators told the Times that 150 workers could be fired to
meet the job elimination goal of 400 positions (with the remainder
met by retiring employees). Those 150 workers may have spouses,
children and others who depend upon them for support. And those
spared from this round of cuts must still deal with low wages, poor
job security and little chance of advancement.

UCLA Health Care dedicates itself to caring for those in need.
But when one employee unjustly receives a $40,000 bonus while
another loses a job with a salary half that, it is difficult to see
the compassion.