By Antonia Ehlers, PR & Media Relations, Kaiser Permanente Northern California

Kaiser Permanente is the largest union-represented health care employer in the U.S. – with nearly 75 percent of our employees represented by unions. We are currently bargaining with the Coalition of Kaiser Permanente Unions, which represents about 88,000 employees in a variety of roles. The Coalition is part of our historic, 26-year-long Labor Management Partnership, the longest-lasting partnership of its kind in the country.

Kaiser Permanente is fully committed to reaching an agreement with the unions affiliated with the Coalition just as we have done in every national bargaining since 1999. Our priority is to reach an agreement that is mutually beneficial and ensures we can continue to offer our people market-competitive pay and outstanding benefits. We are confident that we will reach an agreement that achieves that goal, before the contract expires on September 30. And we are confident that our new agreement will strengthen our position as a best place to work and ensure the high-quality care our members expect from us remains affordable and easy to access.

Strike Authorization Vote

Strike authorizations are a common bargaining pressure tactic that give union leaders the ability to call for a strike in the future. Throughout our negotiations we have seen Coalition leaders attempt to rally their unions’ members to threaten a strike despite important progress made through negotiations.

This tactic does not reflect any breakdown in bargaining, nor does it indicate a strike is imminent or will happen at all. It is a disappointing action considering our progress at the bargaining table. It does not reflect our commitment to reaching an agreement that ensures we can continue to provide market-competitive pay and outstanding benefits.

We urge our employees to reject any call for a strike and continue to focus on providing care and service to the patients who need them. We take any threat to disrupt care for our members seriously and have plans to ensure continued access to health care by our members, patients, and the communities we serve, should any union call for a strike. Our members, patients, and our communities need us to be there for them.

Allegations of Unfair Labor Practices

From the start, we have bargained in good faith to come to an agreement, working diligently in partnership to address the many complex issues at the table. This week, over the course of our sixth formal negotiation session since national bargaining began in April, we offered proposals on important issues including improvements to the performance sharing bonus plan (PSP) and an enterprise-wide guaranteed minimum wage for our Coalition-represented employees. In addition, committees met on staffing, operational savings, and local bargaining agreements.

As always, one of the key issues in this bargaining involves compensation and Kaiser Permanente has made clear we are standing by our proven commitment to provide market-competitive wages and excellent benefits. In fact, as a leading employer, our philosophy is to pay our employees above the local market, to attract and retain the best employees.

Bargaining is dynamic and involves give-and-take. Accusations from union leaders that Kaiser Permanente has not bargained in good faith are unfounded and counterproductive.

We take bargaining seriously and believe that our employees deserve market competitive wages and excellent benefits. We are hopeful union leaders will set aside the counterproductive tactics of this week, so we can focus on working together to deliver an agreement. We remain committed to bargaining with our Coalition unions in good faith and in the spirit of partnership. We will focus our energy on frank and productive discussions that lead to an agreement, and to doing our part to ensure there are no disruptions to the high-quality care we provide.

Staffing

We, like all health care organizations, have experienced staffing challenges driven by the pandemic and its lasting effects. For healthcare systems this has been made worse by the backlog in care and the increase in needs and acuity we’re seeing across the country.

While Kaiser Permanente has experienced the same pressures, through diligent work and an unwavering commitment to our people, we have weathered these staffing challenges better than most health care organizations. Kaiser Permanente’s average employee turnover rate of 8.5 percent, as of June 2023, is significantly lower than the rate of 21.4 percent across health care. Talented people who recognize the value of our current wage and benefit offerings want to work at Kaiser Permanente, which is why about 96 percent of candidates for Coalition-represented positions accept our employment offers—significantly above the industry average.

Kaiser Permanente and the Coalition have agreed to work together to accelerate hiring, and we set a joint goal in bargaining of hiring 10,000 new people for Coalition-represented jobs in 2023. Kaiser Permanente’s efforts to date have resulted in more than 6,500 positions filled, and we are aggressively recruiting to fill more.

Our staffing approach reflects our shared commitment to ensure every Kaiser Permanente patient receives extraordinary care, every time and in every place.

Wages and Benefits

We are leaders in employee wages and benefits, and we have reiterated our commitment in bargaining to continuing to provide market-competitive wages and outstanding benefits. In fact, our philosophy is to deliver compensation that provides wages above the local market (up to 10 percent above market) to attract and retain the best employees.

Kaiser Permanente also offers employees opportunities to learn new skills and grow their careers, and we’re committed to providing a safe and equitable work environment. In addition, we want to ensure that we help our employees build long-term economic security with low-cost health insurance, industry-leading retirement plans, and other benefit programs to support their health and well-being.

It’s also worth remembering that during the pandemic, we took extraordinary steps to support and protect our workforce, and to support their mental as well as physical health. We provided $800 million in employee assistance to ensure that front-line employees had access to alternate housing options, special child care grants, and additional paid leave for COVID-19 illness and exposure.

The unions’ current negotiating position is that wage increases should not be market-based. This prevents us from addressing wage disparities that exist in in many of Kaiser Permanente’s markets where, for some jobs, wages are significantly higher than our targeted wage level, and in other cases our employees’ wages are below other competitors in the market, impacting our ability to attract and retain the best people.

While being a best-in-class employer is a fundamental part of who we are, we cannot continue a national approach for determining wages and ignore local market conditions. We also have a responsibility to make health care more affordable for our patients, members, and customers, including government agencies. For many families and businesses, health care costs are increasingly unaffordable, and growing. Wages and benefits make up about half the cost of health care, across the country. We must work together with unions on the critical goal of ensuring that health care remains affordable.

We are committed to our philosophy of providing market-competitive pay and excellent benefits, and we’ve made that clear in bargaining. We are committed to addressing areas where staffing is challenging, and we are making great progress. And we are committed to doing all this while striving to help health care be more affordable.

85,000 Kaiser Permanente healthcare workers to hold strike authorization vote Monday over what they claim are unfair labor practices, say chronic under-staffing is driving a growing patient care crisis

By Renée Saldaña, Press Secretary, SEUI – United Healthcare Workers West

A strike may be looming at one of the nation’s largest employers.

On Monday August 28, Kaiser workers in California, including Antioch, will start to vote to authorize a strike over unfair labor practices. The voting ends September 12th.   The unions will strike dates soon after we get the results of the vote. The contract expires for a large bulk of the Kaiser workers in the coalition (58,000) on September 30th, so a strike could potentially start as early as October 1.

We are expecting a majority of the workers to vote in favor of a strike. We will keep you posted on any other developments.

On Thursday, August 24, healthcare workers employed by Kaiser Permanente announced details of a potential strike authorization vote at a hybrid in-person and virtual press conference.

Following the UPS labor settlement with the Teamsters, the labor negotiations covering 85,000 Kaiser healthcare workers – represented by the Coalition of Kaiser Permanente Unions – have now become the largest single-employer labor negotiations occurring in the United States. The Coalition unites healthcare workers at Kaiser Permanente facilities in California, Colorado, Oregon, the District of Columbia, Hawaii, Maryland, Virginia, and Washington.

At issue, healthcare workers say, are a series of unfair labor practices related to contract bargaining, along with simmering staff concerns related to unsafe staffing levels that can lead to dangerously long wait times, mistaken diagnosis, and neglect.

If Kaiser executives don’t take swift action to rectify the unfair labor practices that detailed at the press conference, workers say they’ll have no choice but to strike. Workers also say the company needs to immediately and substantively address the growing care crisis at its hospitals and clinics.

Barring a breakthrough in the ongoing negotiations including a resolution of the unfair labor practices in question, the healthcare workers announced the strike authorization vote date and plans.

“Kaiser cannot keep bargaining in bad faith and committing unfair labor practices. Kaiser is facing chronic under-staffing because workers can’t afford to live in LA on the low wages they pay us,” said Miriam de la Paz, a unit secretary at Kaiser Permanente in Downey, California. “If Kaiser’s millionaire executives won’t work with us on a plan to hire more people so we can give every patient the attention they deserve, we’re prepared to vote for an unfair labor practice strike.”

“We want Kaiser to stop committing unfair labor practices, and bargain in good faith. It’s heartbreaking to see our patients suffer from long wait times for the care they need, all because Kaiser won’t put patient and worker safety first,” said Paula Coleman, a clinical laboratory assistant at Kaiser Permanente in Englewood, Colorado. “We will have no choice but to vote to strike if Kaiser won’t let us give patients the quality care they deserve.”

“Our patients expect more from a healthcare system that reported $3 billion in profits in the first half of this year alone, and so do we,” said Nahid Bokaee, a Pharmacist in Sterling, Virginia. “Kaiser can afford to end this dangerous understaffing, but they choose not to. For the sake of our patients and our colleagues, we’re prepared to authorize a strike because Kaiser cannot keep bargaining in bad faith and committing unfair labor practices.”

BACKGROUND

The Kaiser healthcare workers are members of the Coalition of Kaiser Permanente Unions, which represents more than 85,000 healthcare workers in seven states and the District of Columbia. In April, the Coalition began its national bargaining process. The Coalition and Kaiser Permanente last negotiated a contract in 2019, before healthcare workers found themselves on the frontlines of the COVID pandemic that has worsened working conditions and exacerbated a healthcare staffing crisis.

Tensions have been rising as the workers’ contract expiration looms. Earlier this month tens of thousands of healthcare workers picketed Kaiser hospitals across the U.S. to protest the company’s growing care crisis.

Workers say that Kaiser is committing unfair labor practices and also that under-staffing is boosting Kaiser’s profits but hurting patients. In a recent survey of 33,000 employees, two-thirds of workers said they’d seen care delayed or denied due to short staffing. After three years of the COVID pandemic and chronic understaffing, healthcare workers at Kaiser Permanente are calling on management to provide safe staffing levels.

Even as some frontline healthcare heroes live in their cars and patients wait longer for care, Kaiser released new financials this month indicating they made ​​$3 billion in profit in just the first six months of this year. Despite being a non-profit organization – which means it pays no income taxes on its earnings and extremely limited property taxes – Kaiser has reported more than $24 billion in profit over the last five years. Kaiser’s CEO was compensated more than $16 million in 2021, and forty-nine executives at Kaiser are compensated more than $1 million annually. Kaiser Permanente has investments of $113 billion in the US and abroad, including in fossil fuels, casinos, for-profit prisons, alcohol companies, military weapons and more.