A tentative agreement has been reached between health care provider Kaiser Permanente and unions representing 85,000 workers. This comes after a strike regarding wage and staffing issues. The details of the deal, announced on Friday, set minimum hourly wages at $25 in California, where most of Kaiser’s operations are based, and $23 in other states. Additionally, workers are set to receive a 21% wage increase over the next four years. The ratification process will commence next week.
Both parties emphasized the importance of patient care during their discussions. Steve Shields, Kaiser’s Senior Vice President of Labor Relations, stated that the agreement wouldn’t affect current rates. Last week’s three-day strike involved 75,000 workers across multiple states. Union representatives pointed to understaffing as a concern, saying it was impacting patient care while benefiting the hospital system’s profits.
Caroline Lucas, the executive director of the Coalition of Kaiser Permanente Unions, commented on Friday that the agreement would set a new standard for the healthcare industry nationwide.
The agreement also addresses subcontracting, outsourcing, and initiatives to support and expand the current workforce, particularly considering the staffing challenges experienced. This contract is the first since 2019, prior to the COVID-19 pandemic.
President Joe Biden expressed support for the deal and gratitude towards health care workers, mentioning their significant role during the pandemic. Acting U.S. Labor Secretary Julie Su was involved in the negotiation sessions.
On Friday night, California Governor Gavin Newsom signed a new law, raising the minimum wage for health care workers to $25 per hour over the next decade.
The recent strike, which spanned California, Colorado, Oregon, and Washington, aimed to highlight the issues within the health system. Another potential strike had been on the horizon, which would have involved even more workers.
Kaiser, which reported a $2.1 billion profit for the recent quarter, previously proposed minimum hourly wages between $21 and $23 based on location. They also mentioned the addition of 10,000 new hires to their workforce since 2022.