Kaiser Permanente Faces Potential Strike as Contract Talks Stall
WASHINGTON, Oct 3 (Reuters) – Contract talks between Kaiser Permanente and its healthcare workers, covering nurses, medical technicians, and support staff, have hit a standstill, raising the possibility of a three-day strike involving over 75,000 workers across the United States. Union leaders have set a deadline of 6 a.m. PDT (1300 GMT) on Wednesday to reach a tentative agreement.
The strike, if it occurs, would be the largest ever in the U.S. medical industry and would affect hospitals in California, Oregon, Washington state, Colorado, Virginia, and Washington, D.C.
Kaiser Permanente, one of the nation’s leading not-for-profit healthcare networks, has assured that its hospitals and emergency departments will remain open during the strike, staffed by non-union workers. However, the coalition of Kaiser Permanente unions claims that the company has yet to address severe staffing shortages and make improvements to pay and benefits.
Negotiations between the two parties broke off on Tuesday afternoon, leaving just 17 hours before the strike deadline. Caroline Lucas, the executive director of the union coalition, stated that both management and union negotiators are waiting for Kaiser executives to resolve their internal debate and reach an agreement.
Kaiser spokesperson Hilary Costa disputed the union’s claim of a standstill in negotiations, stating that talks are ongoing. She added that Kaiser remains committed to bargaining with the coalition until a fair agreement is reached.
Even if a strike occurs, approximately 60% of Kaiser’s workforce would remain on the job as facilities in Georgia, Hawaii, and most of Washington state would be unaffected. However, patient care in California, Colorado, Oregon, and part of southwestern Washington state would be significantly impacted.
Staffing levels and wages are key issues in the contract negotiations. The union argues that Kaiser needs to hire 10,000 new healthcare workers to address current vacancies. Meanwhile, Kaiser maintains that it has offered across-the-board wage increases of 12.5% to 16% over four years, highlighting its position as a leader in total compensation within the markets it operates.
Kaiser, which has reported profits of $3 billion in the first half of 2023 and over $24 billion in the past five years, is a non-profit organization that pays limited property taxes and no income tax.
A strike at Kaiser Permanente would be part of a larger trend of labor disputes in various industries this year. Nearly 309,700 workers have been involved in work stoppages through August, putting 2023 on track to become the busiest year for strikes since 2019.
The potential strike adds to the challenges faced by Kaiser Permanente and highlights the ongoing labor disputes that are currently prevalent across various sectors in the United States.
Reporting by Ahmed Aboulenein in Washington; Additional reporting by Steve Gorman in Los Angeles; Editing by Bill Berkrot and Gerry Doyle