Cabinet announced Tuesday the approval of an Industrial Agreement between the Public Hospitals Authority (PHA) and The Bahamas Public Services Union (BPSU) valued at nearly $10 million.

The new 5 year Industrial Agreement worth $9,532,030.84, takes effect from July 1, 2013 to June 30, 2018 and entails a significant increase across the board for all members of the Bargaining Unit of the BPSU, and introduces first time remuneration for Emergency Medical Personnel (EMS).

The across the board increases include a lump sum payment totaling $1,075,450 will be paid in September, 2014.

In the fourth year of the Agreement there will be another increase of twelve hundred dollars ($1,200) to base pay plus the normal annual increment, which will cost the PHA two million five hundred thirteen thousand four hundred dollars ($2,513,400).

In the fifth year employees will receive one lump sum increment payment totaling one million seventy five thousand four hundred and fifty dollars ($1,075, 450).

The Agreement awards health insurance to staff of the PHA’s Emergency Medical Services at an estimated cost of $504,458.28. The terms and conditions of the insurance coverage is the same as afforded to nurses and doctors within the PHA.

The Agreement also makes provision for increases to hazard allowance, transport allowance, subsistence allowance and casual Mileage.

This new Industrial Agreement which will be formally executed today comes two months after the Public Hospitals Authority executed a five year agreement with the Bahamas Doctors Union at a cost of $2.9 million.

Negotiations with the Nurses Union are still underway, and the PHA said it hopes to bring closure to this matter shortly.