Management has decided to require all RNs to reduce their PTO accrual banks to no more than 250 hours. They say the reason is so that an RN will continue to accrue PTO when the maximum accrual limit is reduced to 350 hours as stipulated in the unilaterally imposed last, best and final offer (LBF). This reduction will occur in May. The hospital actually had several options they could have chosen to implement the PTO accrual maximum limit.
For example: One option could have been to allow RNs to keep their PTO accrued hours in addition to 350 hours in their banks, freeze accrual, and let the RNs use the hours over time until the banks were reduced below 350 hours. Another option could have been to reduce the banks to 325 hours, 300 hours, 275 hours, etc. rather than 250 hours.
PRN met with management to try to negotiate a less-reduced level. We believed the RNs would rather keep more of their accrued PTO in the bank for use over time. We were unsuccessful in reaching an agreement. Therefore, the hospital unilaterally imposed the 250 hour reduction target.
As a result, every RN will have her/his PTO accrual reduced to 250 hours, even if the RN only has 251 hours in the bank on the day in May when the reduction is implemented. If an RN has 251 hours in the bank, she/he will have one hour paid down. The hospital has the right to reduce the accrued PTO, so long as they pay the RN for the accrued hours reduced. They cannot simply eliminate the hours. They must pay off the hours.
One of the reasons ECH wanted to get PTO accrued hours off the books was to get it off the budget so they did not have to designate moneys to cover accrued PTO hours. By paying down PTO hours in May, the liability is on this year's budget and they will not have to designate as much money on next years budget for PTO potential use/payout. PRN questions the logic of paying out the PTO this year when ECH has been complaining about their financial position since the summer of 2010.
By reducing the accrued hours to no more than 250 hours, the RN will continue to accrue PTO after the paydown to a maximum of 350 hours. If the RN accrues PTO to 350 hours accrual will stop until the RN takes PTO and reduces her/his bank of PTO to less than 350 hours.
If you are upset by this one-time PTO paydown decision, you need to tell management.
This paydown is in addition to the yearly choice the RNs will have to paydown PTO under the new PTO paydown policy that was mandated by long-standing U.S. Internal Revenue Service (IRS) regulations.