Kaiser Permanente and Union Reach Tentative Deal, Potentially Averting Second Strike
The largest-ever healthcare strike in US history may have been resolved as Kaiser Permanente reached a tentative deal with the unions representing its 75,000 employees. The strike, which lasted for three days earlier this month, saw Kaiser Permanente workers picketing across California. The union coalition, known as the Coalition of Kaiser Permanente Unions, expressed excitement over the tentative agreement in a tweet and expressed gratitude for the involvement of Acting US Labor Secretary Julie Su.
Kaiser Permanente also acknowledged the instrumental support of Acting Secretary Su in a tweet. While full details of the tentative deal were not immediately available, some information has been released. The agreement includes a wage increase of 21% over four years in all Kaiser locations, as well as the establishment of a new minimum wage for healthcare workers. In California, the minimum wage will be set at $25 per hour, while in other states where Kaiser operates, it will be $23 per hour.
One of the key issues addressed in the agreement is the critical staffing shortage within Kaiser Permanente. The healthcare provider has committed to accelerating hiring to alleviate the shortage, which has been linked to burnout among employees. Dave Regan, the president of SEIU-UHW, the largest union in the coalition, highlighted an annual bonus program tied to two metrics: the number of patients receiving preventative vaccinations and the reduction of blood pressure among patients.
The tentative agreement will now be voted on by the rank-and-file members of the union. If the agreement is rejected, another strike could still occur. This situation is not uncommon, as rank-and-file union members have rejected tentative deals in the past.
Kaiser Permanente, as one of the nation’s largest not-for-profit health providers, serves 12.7 million members through its 39 hospitals and 622 medical offices. The healthcare sector has seen a significant increase in strike activity in recent years, with unions expressing concerns about pay and staffing shortages impacting the quality of care. According to the Bureau of Labor Statistics, a third of major strikes involving 1,000 or more strikers from January 2022 to August 2022 have been in the healthcare industry.
Acting US Labor Secretary Julie Su played a key role in helping Kaiser Permanente and the union coalition reach this tentative agreement. She previously brokered a deal between the International Longshore and Warehouse Union and the Pacific Maritime Association after more than a year of negotiations.
The outcome of the union vote will determine whether the tentative agreement becomes the final resolution or if further actions will be taken.