REGION — Kaiser Permanente executives and health care employees have reached a tentative agreement for workers’ four-year contracts, closing months of contentious negotiations and preventing another massive strike.
Union and Kaiser representatives announced on Oct. 13 that in an agreement reached early that morning, Kaiser had granted several of workers’ key demands, including a minimum starting wage of $25 in California and $23 in other states, as well as unified pay raises across the different regions.
Agreements were reached the same day that Gov. Gavin Newsom approved a highly-anticipated bill setting a $25 minimum hourly wage for health care workers in California.
The contract ratification process will begin this week, and the contract will be retroactive to Oct. 1, Kaiser officials said.
Kaiser employees say they are facing a massive staffing shortage due to the high cost of living — particularly in California — and have pushed for minimum wages and raises that they say will attract and retain more workers.
Earlier this month, previous failures to reach an agreement led to a historic three-day strike of over 75,000 Kaiser employees in California, Washington state, Colorado, Oregon, Virginia, and Washington, D.C.
Even as employees returned to work after the strike, the possibility of a second work stoppage loomed over negotiations. The Coalition of Kaiser Permanente Unions notified executives they were prepared to strike again, this time for one full week if an agreement was not reached by Nov. 1.
In a press conference via Zoom on Friday, Coalition Executive Director Caroline Lucas said the unions throughout different states fought hard to have unified pay raises.
“This is an economy that is hard for all workers. We were really united on the concept that workers need to be able to keep up with the cost of living. We are pleased that Kaiser Permanente recognized the hardship that their workers are facing in all of their markets,” Lucas said.
Kaiser officials thanked United States Secretary of Labor Julie Su for her involvement in the negotiating process, which included sitting in on two all-night negotiating sessions in the past two weeks.
Steve Shields, Senior Vice President of Labor Relations for Kaiser, said the secretary helped both parties to realize the areas of the tentative agreement where they have common interests.
“It was a bumpy ride, but you definitely helped us get back to being grounded in the mission,” Shields said. “I’m very excited about this agreement. I think it’s great for Kaiser Permanente, great for our employees and the unions that represent them.”
Su applauded both parties for reaching a resolution and emphasized the Biden-Harris administration’s commitment to workers’ rights.
“This agreement demonstrates what is possible when workers have a voice and a seat at the table,” said Su.
Other provisions in the agreement include an accelerated hiring process to more efficiently get workers into patient-facing roles, and additional opportunities for professional development to advance workers’ health care training.
Going forward, union and executive leaders said there is a need to rebuild their longstanding Labor Management Partnership that historically had involved a joint effort to improve patient services and conditions for workers.
“Although it’s been bumpy, and we’ve obviously had our challenges, there is a commitment on the part of the unions that make up the coalition to say to Kaiser that we genuinely want to rebuild the partnership,” said Dave Regan, president of SEIU-United Healthcare Workers West.
Kaiser leadership said they do not expect the agreement terms to result in increased costs for patient care.
