Major executive restructuring at London Health Sciences Centre amid budget crisis

What’s happening at LHSC?

London Health Sciences Centre (LHSC) is undergoing significant organizational restructuring under the leadership of interim CEO David Musyj, who was appointed to address the hospital’s escalating budget crisis. The restructuring aims to slash nearly half of the hospital’s executive positions as part of a broader effort to manage a growing $150 million deficit.

In the past week, LHSC announced the departure of at least seven high-ranking executives, who collectively earned $2.3 million in 2023:

• Brad Campbell, corporate hospital administration executive, $475,500 salary in 2023.
• Sandra Smith, regional vice-president for the southwest regional cancer program, $244,250.
• Abbi Mukherjee, corporate services executive, $416,000.
• John French, clinical diagnostic executive, $296,000.
• CJ Curran, corporate health disciplines executive, $296,500.
• Dipesh Patel, capital redevelopment and environmental operation, $322,500.
• Jatinder Bains, corporate academic executive, $296,000.

Key details

• Impact on Front-Line Workers: The executive cuts have eased concerns among front-line workers, who initially feared they might bear the brunt of the budget cuts.
• Musyj’s Leadership: Musyj, who is also the CEO of Windsor Regional Hospital, was brought in as interim CEO at LHSC in May 2023 with the goal of stabilizing the hospital’s finances. His leadership has been marked by decisive actions aimed at restructuring the organization to better support its long-term vision and financial recovery.

Official statements and context

In a memo to staff, Musyj outlined the hospital’s new leadership structure, placing himself at the top with 10 vice-president positions below. He also emphasized that the ongoing changes were made with careful consideration of LHSC’s financial recovery and commitment to patient care.

Musyj hinted that more organizational changes are on the horizon, as the hospital continues to assess its operations and leadership needs. The restructuring process, which began in June, is expected to take three to four months to complete.

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Musyj has sought extensive feedback from hospital staff, professional staff, and physicians through interviews, focus groups, and surveys, working with consulting firm BIG Healthcare to evaluate the hospital’s leadership structure.

Your rights

In Canada, non-unionized employees at LHSC are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment lawyers for London at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.