Kaiser reaches tentative deal with health care workers' union; 'Front lines folk have the answers'

LOS ANGELES - Kaiser Permanente and the union representing thousands of its health care workers reached a tentative deal that could end the labor dispute that resulted in a three-day strike last week, and nearly seven months of contract negotiations.

"The new four-year agreement will offer Coalition-represented employees competitive wages, excellent benefits, generous retirement income plans, and valuable job training opportunities that support their economic well-being, advance our shared mission, and keep Kaiser Permanente a best place to work and receive care," Kaiser said in a statement on Friday, Oct. 13.

Roughly 75,000 workers represented by the Coalition of Kaiser Permanente Unions walked off the job from Wednesday through Friday last week in what the union billed as the largest health care strike of its kind in U.S. history. Workers walked picket lines across California and in Colorado, Washington, Oregon, Virginia and Washington, D.C.

Nurses, emergency department technicians, radiology technicians, ultrasound sonographers, surgical technicians and x-ray technicians were just some of the workers involved in the strike, according to union officials.

The union coalition has been pushing for higher wages commensurate with inflation, increased staffing and working conditions. The unions have also repeatedly accused Kaiser of negotiating in bad faith, an allegation Kaiser has denied.

PREVIOUS COVERAGE: Kaiser workers end 3-day strike

The union has also accused Kaiser of cutting performance bonuses for employees, failing to protect employees against subcontracting and offering wages that fail to keep pace with inflation, all issues that Kaiser has refuted.

"We owe a tremendous debt to health care workers and the hard-working men and women who make their work possible. Health care workers and support staff kept our hospitals – and our nation – going during the dark months of the pandemic," said President Joe Biden in a statement. "They had our backs during one of our nation's toughest times. We must continue to have theirs."

Last week, Kaiser officials issued a statement saying rising inflation has led to a "massive surge" in expenses, and has made it tough for the company to balance taking care of its employees with being affordable to patients.

"At the same time, in the wake of the pandemic, demand for care has increased dramatically, as people come in for care that has been delayed. Kaiser Permanente is not immune to these inflationary pressures," Kaiser officials said.

However, in a press conference on Friday, Kaiser's Vice President of Labor Relations Steve Sheilds said that the tentative agreement reached should not have an impact on premiums.

"We have an obligation to our members to offer affordable health care," said Sheilds. "We don't expect any changes in rates simply due to this labor contract."

The tentative agreement now goes to the more than 85,000 Kaiser Permanente employees who are represented by coalition unions for ratification. The ratification process will begin on Wednesday. The Coalition unions have withdrawn their notices for a November strike.

Kaiser officials said recent bargaining sessions did result in a "number of tentative agreements," and they insisted the health care system's latest offers address the union's demands. Kaiser officials said the company is offering the below as part of a four-year agreement:

• "Across-the-board" wage increases of 21% in all markets over four years;
• An improved Performance Sharing Plan with the potential for payouts of up to $3,750;
• Minimum wages of $25 an hour in California and $23 an hour in other markets; and
• Renewal of tuition assistance and training programs.

Ushering in the next generation of health care workers is also a critical priority for Kaiser in the coming years. The company affirmed its commitment to hiring, reaching its goal of hiring 10,000 new union-represented employees before the end of the year.

"In total over the past two years, Kaiser Permanente has hired more than 50,000 people to join our teams," according to the company.

Kaiser's Caroline Lucas described this new agreement as the company's "secret sauce" in retaining current employees and attracting new talent, as she says that the partnership makes for a "passionate, respected and valued" workforce.

In a press conference on Friday, Kaiser maintained the top priority: quality, affordable care for their patients.

"The people closest to delivering care are the ones that can effectively figure out how best to give care," said Lucas. "Front lines folk have the answers, we just have to get them in the room to talk to each other."

City News Service contributed to this report.