News Release

March 22, 2013

THE BETHANIA GROUP PERSONAL CARE HOMES ACTED IN GOOD FAITH A difference has arisen with the government over the contractual terms arrived at between Bethania and a valued employee. Bethania hoped to resolve this matter through good faith and mutually respectful discussions, and in a manner respecting the privacy rights of all concerned. It still hopes that the government will return to this method of resolving matters. A constructive resolution of differences of opinion will assist all concerned, including our residents. Bethania regrets that the government has instead chosen to adopt a public and politicized approach to this matter. The Minister has issued a press release which is not fair or complete in its presentation. The WRHA has posted part of the exchange over an audit report on its public website, but failed to include an important part of Bethanias official response. Attached to this release is an Addendum submitted to Manitoba Health and the WRHA. While Bethania believes that the confidentiality of its exchanges should have been maintained, now that part of the record has been made public, it is anxious that those interested have more complete information. Bethania further regrets that the government did not see fit to honour its request to post the Addendum with the audit on the WRHAs own website. Public means of communication, in Bethanias view, should be used in a manner that provides an accurate and balanced record to the public, rather than one-sided advocacy by government. Key points in the attached Addendum include the following: when the valued and respected executive in question moved to a different role in the corporate family, the cost of his overall employer cost did not increase. It went down, because it was no longer necessary for an employer to pay pension

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contributions. Furthermore, the employee no longer received pre-retirement leave allowance; the employee would have received his pension, earned over a course of three decades of employment, in any event. The contract would have paid him remuneration, apart from his pension, for service apart from his previous work; Bethania concluded that a legally binding new contract was made with its employee before Bill 6 was announced. Bethania is ethically and legally obliged to honour its contractual commitments. Legislation is generally interpreted as not taking away contractual rights that had already been created before it comes into force. Bethanias mission is to provide the best possible care for its residents. In the course of doing so, it seeks to follow the principles of good internal governance, co-operate with government and use both private and public funds properly and efficiently. Bethanias Board consists of volunteers. Its staff, including the executive in question, are committed to Bethanias mission of providing the best possible care for residents. Bethanias Board will meet on Monday to consider its options. Pending that, Bethania does not wish to engage in further media interviews. In the meantime, Bethania asks its supporters, staff and the public and press to be patient as we develop our approach to resolving this matter and explain our perspective. We are not an institution that is used to being embroiled in public and politicized controversies. We do not have the experience or resources of government in doing so. Bethania has acted in the utmost good faith throughout. Differences of opinion on policy and legal matters can arise at times. Bethania remains committed to the view that these should, to every reasonable extent, be resolved in a reasonable and good faith manner, and hopes that the government will engage with Bethania to do so. - 30 -