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Pressure on pharmacists’ wages a global trend

30 October 2009 | by Kos Sclavos Print this article Comments Share this article

The global financial crisis (GFC), coupled with Government policy in the pharmaceuticals area, is having a severe impact on community pharmacy across the world.

This is in turn having a major impact on pharmacists' wages. This is because the first lever that a business enacts is to cut staff and reduce wages costs.

Many pharmacists in Australia would be unaware that there is no minimum wage for individual professions in many countries. There is only the protection of overall minimum wage.

The following global snapshot of work undertaken by the Guild shows why community pharmacy needs to remain viable and the profession united in this time of Agreement negotiation.

Comments by some pharmacists will only cause damage to their own remuneration in the long term and the overseas evidence is there for all to see.

USA
There are 110 pharmacy schools in the United States with the number of schools doubling over the last eight years.

Prior to the GFC, pharmacy was booming but the new Medicare Part D arrangements together with the GFC have caused pharmacists' wages to be slashed.

There is now an oversupply. In many US states, pharmacist wages have been cut in half with remuneration average falling to under US$40,000 in states like California.

As of 24 July, 2009, the minimum wage in the United States by Federal law is a mere US$7.25 an hour. There is no minimum pharmacist wage in place.

United Kingdom
The minimum wage in the UK is £5.73, with no minimum profession wage in place. Generic medicines policy and the GFC have caused wages to fall for pharmacists in management positions by 33 per cent.

Many of the pharmacy chains are happy to take pharmacists from other EU countries. To them, the wages seem fine compared to the wage in their country of origin.

To corporate pharmacy owners, wages to pharmacists are a mere business cost and they are ruthless in their approach. Some chains actively recruit from other EU countries.

Ireland
The situation in Ireland is quite dramatic, with wage rates for pharmacists falling from €50 an hour to €15 an hour in a mere 18 months in some areas.

The minimum wage is currently €8.65 an hour. The reduction in pharmacist remuneration by dramatic Government policy is well documented and pharmacy and the Government are in court at present.

New Zealand
Even one of our closest neighbours does not have a minimum wage for individual professions. On 1 April, 2009, the minimum wage was a mere NZ$12.50 an hour.

In community pharmacy, wages have fallen by 25 per cent over the last 18 months. The first impact was shown on pharmacist relievers, who reported only half the amount of hours being available compared to a year ago.

Australia
The vast majority of Australia's registered pharmacists are employed in community pharmacies. It is vital that community pharmacy remains viable to ensure these pharmacists keep their jobs and at a wage levels that they currently enjoy.

In Australia, the Guild is fighting for a fair Agreement to ensure that all pharmacists remain in jobs. The growth in pharmacy schools and 1,400 graduates a year is adding further pressure.

The critics of community pharmacy from within our profession, who incorrectly believe community pharmacy owners are faring well and are calling for cuts in the Agreement, should keep in mind the jobs of their pharmacist colleagues.

It was the Greek fable author Aesop who said, "United we stand, divided we fall."


Tags: wages


Add a comment16 Comments

  1. at 10:46 PM on 17 March 2010, Mohamed wrote:
    I agree with every word u've said Alexa....I am really thinking of changing my profession.
  2. at 01:16 PM on 25 February 2010, Loi wrote:
    It’s nothing we can do about this. All the universities are craving for more profit, so they do not care whether the futures of their students are remained viable. It’s shameful to see such a good profession have to demolish their repetition because of the un-well trained new graduates and the greediness of all the universities. I can ensure you one thing, 3-4 years later when everyone realize that studying pharmacy have no future, then no one will enroll into the course and the universities with no student enroll have to shut their school. So best of luck to those new school of pharmacy and I hope will come up with a good plan if this happen to you.
  3. at 10:28 AM on 23 February 2010, anonymous wrote:
    I looked at the most recent study and yes there are 1400 pharmacy graduates each year in Australia. That was a 2006 study. There is no telling if it is 1500 or 1600 now. Seeing how there are only 5000 pharmacies and less than 1000 working hospital pharmacists I dont see how there wont be a glut of pharmacists in the future. There doesn't seem to be a future in pharmacy. In the mean time schools will be profiting and so will pharmacy owners who will be able to employ pharmacists for next to nothing. There doesn't seem to be any way of making the 14 pharmacy schools limit their enrollment.
  4. at 05:41 PM on 15 February 2010, Mahta wrote:
    As a mother of recent graduate of pharmacy I am totally disappointed from prospect of any job or good pay for my daughter. I now realise that all the systems including large number of Pharmacy places in universities as well all the Hardship in the course has been setup biased towards the owners of Pharmacies to provide them with abundent cheap work force.I discourage parents considering pharmacy as higher education for their children as it has no future. All negative commnets are real my daughter is intouch with her friends and none of them have found jobs either.
  5. at 06:50 PM on 14 February 2010, John wrote:
    I've been registered for a couple of years now and I can tell you as a a fairly young pharmacist that many of my peers have become disillusioned to profession and have lost hope with it's unsecure future. The fact that there are too many pharmacy schools churning out pharmacist means that there is no longer a shortage of pharmacists and the profession has become saturated. There are not as many job vacancies anymore and the with wages dropping there is no hope. Young pharmacists will be forced to look into moving into another career, and sadly 5 years of study/knowledge will have been wasted. In the long run, pharmacy school enrolments will drop, and therefore standard students during intake will drop. It all seems like pharmacy as a profession is inadvertantly imploding into itself. That is the reality for young pharmacists. No matter what positive outlook the heads of organisations promote, we know what the reality is:job vacancies are minimal, proper wages are harder to come by and ownership has become next to impossible. I would like to think the industry professions are right, but I can't help but think they have become blinded of truth from their own biased views. Unfortunately these people are the only ones who are in a position to make an effective changes and steer the profession in the right direction.
  6. at 11:07 AM on 5 February 2010, Tan wrote:
    There are 5000 pharmacies in Australia and each year there are 1400 new graduates. No wonder, some pharmacists would accept $25 per hour! This is very sad indeed.
  7. at 08:50 AM on 2 February 2010, Jarrad wrote:
    If wages become too low and jobs too hard to come by, people will bite the bullet and do something else.
  8. at 01:28 PM on 11 December 2009, Arthur Czokalski wrote:
    Kos Sclavos justifies falling wages and work conditions on overseas trends. Will he start telling us how good pharmacists have it here compared to Pakistan or Russia next. His pro-owner anti employee stance is so transparent he's laughable.
  9. at 07:44 PM on 26 November 2009, Oliver wrote:
    Sam, Alexa sounds American.
  10. at 04:19 PM on 25 November 2009, Sam wrote:
    Alexa, what country are those sort of ads from?
  11. at 11:49 AM on 20 November 2009, Alexa wrote:
    John Hayes is quite correct. There is always the option to switch out of the profession, especially when young. I seen ads for Dispensary techs and phcy retail managers for between $25-32/hr! Why bother being a pharmacist with all its responsibility when you can get this as a tech!?? Overseas I have seen ads for Pharmacists offering up to AU$15k/month + living allowances. And these places are major cities, not rural areas (like most of Oz!). Pharmacists here are undpaid for the responsibility they have and training they have had, period.
  12. at 05:21 PM on 19 November 2009, David wrote:
    John Hayes sounds like he is in the business of enrolling new pharmacy students. To say "disillusioned new pharm grads who cannot find work; you are still young and have time to switch professions if you feel you cannot get a break." is insulting and disgusting. Having spent 4 years in a course with a 25K debt where competition for intern-ships is at a all time high from unnecessary new pharmacy schools says alot about your "IMMENSE demand for excellent pharmacists". This is just misleading and a deliberate lie to further entice new students into an already problematic profession.
  13. at 10:25 AM on 6 November 2009, John Hayes wrote:
    A well-educated pharmacist that can actively grow and manage a business whilst serving up his usual fare at a high standard is what I deem to be an excellent pharmacist. These individuals are in fact fairly rare and who I personally look to employ where possible. My sympathies go to all those disillusioned new pharm grads who cannot find work; you are still young and have time to switch professions if you feel you cannot get a break.
  14. at 04:21 PM on 5 November 2009, Jon Rippon wrote:
    @John Hayes, are you by any chance working for one of the increasing number of Pharmacy Schools? As one who knows no less than 10-12 high-achieving pre-regs who still can't find internships 1 year after graduation, to those new pharmacists who can't find a pharmacy job after pre-reg even in various rural regions in Vic & NSW, I am interested to know where you are getting your facts from. Btw, "immense demand" & "excellent" are subjective terms. In many businesses nowadays, an "excellent" pharmacist is one who does not demand a pay rise, fills 4-500 scripts a day and does not take lunch/toilet breaks.
  15. at 09:30 AM on 5 November 2009, Alexa wrote:
    I would like to see Kos Scavlos work this job for a measly award rate: Experienced FT Pharmacist wanted, heavy script load 400-500+ per day. One disp tech. Other duties inc Counselling, reconciliation of tills and staff rosters. Must have excellent oral and written communication skills, preferably speak another language. Methadone pick up plus Webster checking (approx 50 per week). What professional would do that for $25/hour?? In fact Pharmacists are very low paid for a professional!
  16. at 10:16 AM on 2 November 2009, John Hayes wrote:
    I doubt very much this will happen widely in Australia. There will always be IMMENSE demand for excellent pharmacists. Australian pharmacy is in a strong position.

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