Health care workers’ union reaches tentative deal with Kaiser following historic strike

OAKLAND, Calif. (CN) — A coalition of unions representing thousands of health care workers says it has a tentative deal with Kaiser Permanente, following a historic nationwide strike and possibly dodging another.

The Coalition of Kaiser Permanente Unions, which went on strike for three days last week in the largest health care workers strike in U.S. history, announced Friday that it may soon ratify an agreement with California’s largest health care provider. The insurer and health care system operator serves about 13 million people. 

Kaiser presented an offer to avoid another possible strike on Nov. 1, agreeing to raise wages by 21% over four years and establishing a new minimum wage of $25 per hour in California and $23 per hour in other states where it operates. It also agreed to protective terms around subcontracting and outsourcing along with initiatives to improve staffing: increased training and education funding, mass hiring events and professional development opportunities for employees.

Dave Regan, president of SEIU-United Healthcare Workers West, said in a press conference Friday that the deal should improve workers’ ability to afford the rising cost of living nationwide while working at Kaiser facilities. 

“For the first time in decades and decades, we have a national administration where this was a priority,” Regan said.

Acting U.S. Labor Secretary Julie Su returned to California Thursday evening to mediate the negotiations. She said in the press conference that the agreement is an example of union actions across the country to “get the wages they deserve” — particularly among workers who tend to be more likely to be women of color. 

“Unions build the middle class,” she said. “And women have powered this country’s economic recovery ,and it meant a lot to get to thank them for that in the course of these negotiations.”

In a statement Friday, Kaiser said the four-year deal will offer coalition employees competitive wages, benefits and retirement income plans, along with job training opportunities that support them and “keep Kaiser Permanente a best place to work and receive care.”

President Joe Biden thanked Su for her role in the negotiations in a statement Friday. He noted collective bargaining has worked before, including to ensure UPS drivers and dock workers can exercise their rights to participate in a union. 

“Health care workers and support staff kept our hospitals — and our nation — going during the dark months of the pandemic,” Biden said. “They had our backs during one of our nation’s toughest times. We must continue to have theirs. I’m heartened to see health care workers and their employers take this critical step towards securing the pay, benefits, and working conditions these heroes deserve.”

The union coalition said that the landmark deal follows months of advocacy from about 75,000 frontline workers.

“This deal is life-changing for frontline healthcare workers like me, and life-saving for our patients,” said Yvonne Esquivel, a pediatric medical assistant at a Kaiser facility in Gilroy, California. “Thousands of Kaiser healthcare workers fought hard for this new agreement, and now we will finally have the resources we need to do the job we love and keep our patients safe.”

The coalition will vote starting Oct. 18 to ratify the agreement. It last negotiated a contract with Kaiser in 2019, before the Covid-19 pandemic. 

About 85,000 Kaiser health care workers in seven states are represented by the coalition, which voted Sept. 20 by a 94% margin to authorize the protest against unfair labor practices. 

Employees seek higher pay and demand the health care giant improve staffing levels and stop outsourcing work. The coalition said earlier this week that outsourcing has been a major sticking point in negotiations because Kaiser executives refused to agree to subcontracting and outsourcing limitations. 

Despite being a nonprofit organization that pays no income taxes on earnings and limited property taxes, Kaiser reported more than $24 billion in profit over the last five years. The company has investments of $113 billion in the U.S. and abroad, including in fossil fuels, casinos and for-profit prisons. On Thursday, Kaiser reached a settlement with California’s Department of Managed Health Care, agreeing to pay a $50 million fine and overhaul its behavioral health care services system. 

The coalition said the tentative deal sets the bar for negotiations underway in California at other medical providers, such as Prime Healthcare. Nearly 2,000 Prime workers are finishing a five-day strike on Friday, and say their management refused to bargain in good faith to improve working conditions and staffing to address poor care standards.

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