Recent events have highlighted a critical issue within our health care system that demands our immediate attention and collective action.
NBNU has been sounding the alarm about the province’s use of private, for-profit nursing agencies for a long time.
We now know more about the outrageous exploitation New Brunswick taxpayers are currently experiencing at the hands of these nursing agencies.
Contract Timeline
While NB was getting fleeced by private health care companies, other provinces were solidifying their nurse staffing through return-to-service agreements so that they could more accurately predict their future staffing needs. The NB government refused to attempt to compete with them for the services of our NB-born and trained nurses.
Meanwhile, the NB government was sitting on record surpluses.
The majority of agency nurses working in New Brunswick have been supplied by Canadian Health Labs (CHL), with CHL accounting for more than 80% of the overall spend.
Beyond the fact that CHL charges up to three times more for their services than any other agency, the Auditor-General’s report has revealed deeply troubling information about the contracts they struck with Vitalité Health Network and the Department of Social Development (SD).
CHL had a significant advantage
SD used and signed contracts provided by the contractors, with notable favour to the vendor, resulting in undue risk to the province. Neither Vitalité nor SD submitted any contract to a legal review.
One CHL contract has an auto-renew clause
One of Vitalité’s contracts with CHL for RNs and LPNs expires February 5, 2026. However, the contract contains an automatic renewal clause if CHL can show they have met certain criteria.
CHL had the right to deploy teams whether we needed them or not
The contract gave CHL the right to deploy a minimum number of staff teams, regardless of the actual need of the facility at the time.
CHL invoices lacked detail
No information was provided as to the staff name, location and date of work. Departmental payment approvers did not request additional information from CHL and did not follow up with facilities to confirm hours worked. Invoices were paid by SD without question.
Contract allowed CHL to charge Vitalité for expensive vehicle rentals
Vitalité’s contract with CHL allowed for the rental of vehicles from Canadian EV Labs or an affiliated company. The CEO of CHL is also the sole director of Canadian EV Labs and Canadian Sustainability Labs. Vitalité received invoices from Canadian Sustainability Labs for electric vehicle (EV) rentals and EV charging. Rates for the EV car rentals ranged from $184 – $345 per day and were provided to PSWs, LPNs, RNs and logistics staff.
Examples of Canadian EV Labs and Canadian Sustainability Labs charges of note were as follows:
- one invoice paid without support or description of the purpose or employee name, totaling $11,305
- one invoice included 43 car rentals, totaling $63,910 for one week
French language requirements were not enforceable by contracts
Vitalité officials stated the reason CHL was selected and given most of the work was their ability to provide French language services. However, within CHL contracts, requirements were limited to the following:
Contract 1 (July 2022) for RNs and LPNs:
- Minimum of 0% of the staff deployed in Campbellton will be Francophone/bilingual
- At no point will a team who is deployed at CHU Dumont be less than 50% bilingual (functional)
Contract 3 (December 2022) for RNs and LPNs:
- Minimum of 0% of the staff deployed in Campbellton and Bathurst will be Francophone/bilingual
- At no point will a team who is deployed at CHU Dumont or in Edmundston be less than 90% bilingual (functional)
These are just some of the problems that have come to light.
This contract is one of many symptoms of the health care crisis. It is the result of decades of neglect and mismanagement by successive governments.
The Blame Game
To avoid taking responsibility, the government and Vitalité are pointing the finger at each other. Government claims the contracts were signed without their approval or knowledge.
As far as NBNU is concerned, both parties need to take ownership and responsibility for this mess. We are calling for a public inquiry: an independent investigation conducted to uncover the truth behind significant issues affecting taxpayers.
It is a powerful tool that ensures transparency and accountability, and it can begin the journey towards reform.
We urge the government to take responsibility. This is not about assigning blame: it is about learning from mistakes and committing to fixing the problem. It is time for the government to step up and acknowledge its role.
What You Can Do
SPEAK UP: Use your voice to advocate for a public inquiry.
Tell your elected representative that you want government to conduct a public inquiry on the contracts with private health care staffing agencies.
Use social media to raise awareness
We will be sharing information and further calls for a public inquiry on our social media platforms. We encourage you to share them in the coming weeks to keep this issue top of mind for your community.
Support your union
Stand with us as we fight for transparency, accountability, and reform in our healthcare system.
