Kaiser Permanente, Unions Reach Tentative Labor Agreement

Kaiser Permanente and more than 80,000 workers in the Coalition of Kaiser Permanente Unions reached a tentative contract settlement Tuesday that workers say will revitalize the long-standing worker-management partnership and accomplish a set of goals to make sure Kaiser is the best place to receive and give care.

The workers previously voted in favor of a nationwide strike that would begin Oct. 14, but if the agreement is ratified in the coming weeks, that strike would be averted.

"This agreement will allow us to rebuild the worker-management partnership that has been so important to all of us in making Kaiser successful over the last 20 years," said Georgette Bradford, an ultrasound technologist at Kaiser in Sacramento. "Reaching an agreement was not easy, it had lots of twists and turns, but in the end we accomplished what we set out to do — reach an agreement that is good for patients, workers and our communities."

According to the Coalition of Kaiser Permanente Unions, the tentative four-year agreement between Kaiser Permanente and workers in six states and the District of Columbia includes:

— An intensive joint effort to revitalize the worker-management partnership.

— A ground-breaking workforce development program to provide educational opportunities for thousands of workers to receive a free education to help fill an expected shortage of hundreds of thousands of licensed healthcare jobs with a culturally appropriate workforce. Kaiser will provide $130 million in funding for the program over the four years of the contract.

— Protection of good middle-class jobs with annual raises of 3 percent in each of the four years for workers in California, Oregon and southern Washington. In Colorado, Hawaii, Virginia, Maryland, the District of Columbia and the rest of Washington State, workers will receive raises of 3 percent the first year and 2 percent plus a 1 percent lump sum the following three years. In those states, workers will have an opportunity to turn the lump sums into regular raises if the company hits certain financial performance benchmarks.

— Full protection of retirement benefits for current and future employees, and an expansion of retirement benefits in Hawaii, Virginia, Maryland and the District of Columbia.

— A ban on subcontracting and stronger restrictions on outsourcing.

— A committee to work through issues around technology to ensure patients receive personal care that integrates cutting-edge tools with quality, dedicated caregivers.

The tentative agreement was reached following nearly five months of "active bargaining" that began in April.

According to a statement Wednesday from Kaiser Permanente, the tentative agreement provides annual pay increases and maintains excellent employee benefits while also creating a program to reduce the national shortage of health care workers.

Voting by workers is expected to be completed by the end of October.

"If ratified, the agreement will position Kaiser Permanente — including its members, employees and local communities — for a sustainable future as the organization works to make its high-quality, integrated model of care even more affordable and accessible in all its regions," said Kaiser Permanente Spokesman Marc Brown.

Arlene Peasnall, interim chief human resources officer for Kaiser Permanente Health Plan and Hospitals, said management members "greatly respect and value our employees who deliver our mission every day."

"This agreement is a testament to the dedication, compassion and skill those employees bring to work every day and demonstrates that Kaiser Permanente and the Coalition have a shared commitment to affordability for our members," Peasnall said.

If ratified by the Coalition of Kaiser Permanente Unions — comprised of 11 local unions from three international unions — the contract will go into effect Oct. 1.

"Kaiser Permanente has an unparalleled track record of working constructively with labor to solve problems together to improve the care and service offered to our members and patients," Peasnall added. "We may disagree at times, but we have always been able to work through our challenges to align on common goals."

The tentative contract affects 85,000 health-care employees: 67,000 in California; 8,300 in Oregon and Washington; 3,100 in Colorado; 5,000 in Maryland, Washington, D.C. and northern Virginia; and 1,000 in Hawaii. Coalition employees represent hundreds of job classifications, from optometrists and pharmacists to maintenance and service workers.

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