VANCOUVER, B.C. - Thousands of British Columbia health-care workers who lost their jobs through contracting out will be getting payouts from a total of $68 million in compensation.

The Hospital Employees' Union, which represented about 92 per cent of the affected employees, said Monday that the average amount will be $9,500, and the cheques will be in the mail before Christmas.

About 7,000 workers lost their jobs after the B.C. government brought in legislation in 2002 that allowed health employers to rip up union contracts and privatize jobs.

Other unions that challenged Bill 29 in the Supreme Court of Canada included the B.C. Nurses' Union and the B.C. Government and Service Employees' Union.

The high court ruled in June 2007 that parts of the law violated the Charter of Rights and Freedoms.

That led to negotiations with the B.C. government, which promised to pay out $68 million in compensation.

Tonya Blakley, spokeswoman for the Health Employers' Association, said the process determined through arbitration is satisfactory.

"We feel that the end process is fair and it was agreed to by all parties so now we're moving forward in rolling out the payments."

But Hospital Employees' Union spokeswoman Judy Darcy said that while the compensation will provide long overdue financial help to families who have suffered as a result of Bill 29, the fallout from the legislation continues in B.C.'s health-care system.

"We're really, really pleased that we're going to be able to see money in people's pockets, whose lives in many cases were ruined by Bill 29," Darcy said.

"But I also want to emphasize that no amount of money can compensate people for the damage that they suffered."

Darcy said Bill 29 has ushered in lower wages and contract flipping in an era when superbugs and viruses have made infection control by hospital cleaners absolutely critical.

"Because of Bill 29, there's a whole new private sector in health care, especially in long-term care, and a whole new private sector that is delivering support services," Darcy said.

"And in those support services, big multinational contractors are paying people $13 an hour."

Darcy said some food services employees and cleaners hired by private companies also have to pay 50 per cent of their benefits and do not have a pension plan.

Flipping of commercial contracts means seniors often don't know from one week to the next whether the same providers will be caring for them, she said.

Workers will get between $788 and $17,730, depending on their length of service, loss of earnings, employment status and other factors.

Claims are based on a point system established by labour arbitrator Vince Ready.

B.C. Health Minister George Abbott was not available for comment.