ROCHESTER — In a development that reflects the complexity of labor negotiations within the healthcare sector, an arbitration hearing has finally been scheduled in the ongoing contract dispute involving the Mayo Clinic and SEIU Healthcare Minnesota & Iowa, following a protracted and intricate negotiation process.
“It goes at a lawyer pace, so it’s much slower than we were hoping it would be,” observed Hallie Wallace, an SEIU organizer and lead negotiator for the 1,600-person bargaining unit at Mayo Clinic Hospital-Saint Marys, highlighting the frustrations of those involved.
SEIU-affiliated staff at the Saint Marys campus have been operating under a contract that expired on April 23, originally covering the period from 2021 to 2024. As negotiations for a new contract aimed at addressing the needs of staff for the next three years commenced on February 29, both parties engaged in discussions characterized by contention and differing priorities until mid-June, when union members emphatically voted to initiate the arbitration process, signaling their desire for a more definitive resolution.
That arbitration hearing, now officially scheduled for late January 2025, will be crucial in determining the outcome of the dispute.
“Our lawyers argue our side,” Wallace explained, detailing the arbitration process, “their (Mayo’s) lawyers argue their side, and it’s in front of a three-person panel composed of one neutral arbitrator from the Federal Mediation and Conciliation Service.” This setup underscores the serious implications for both sides as they seek a resolution.
Each party has also selected an arbitrator to represent their interests. Wallace confirmed that Mayo Clinic’s choice includes one of their lawyers from the Littler law firm, while SEIU’s selection is Jamie Gulley, the president of SEIU Healthcare Minnesota & Iowa. After the panel conducts hearings with both sides presenting their cases, the arbitrators will ultimately render a decision regarding essential contract details.
“In reality, probably a lot of that outcome will be decided by the neutral mediator since our side and their side definitely aren’t going to agree on a lot of things,” Wallace candidly stated, reflecting concerns over the potential challenges ahead.
As both sides prepare for arbitration, Wallace noted that they remain at an impasse on key issues including wage increases, adjustments to mandatory overtime policies, and the duration of the new contract.
“A positive note is that the wage proposal that they (Mayo) are bringing to arbitration, as what they want to see, is higher than what was at the table when we filed for arbitration,” she shared. “It’s still not where we need it to be, but we see that as a positive sign,” indicating a glimmer of progress amidst ongoing disputes.
In a show of solidarity and determination, union staff organized an informational picket outside the hospital in May, where they not only delivered a petition to hospital leadership but also voted to regain their right to strike in the next contract — a condition that had been relinquished under the previous agreement in exchange for the opportunity to pursue arbitration.
The Saint Marys bargaining unit comprises various essential roles, including certified surgical technologists, sterile processing technicians, patient escorts, patient care assistants, environmental services workers, linen workers, telecommunications specialists, and staff from the Mayo Inventory Center, making their negotiations critically important for patient care and operational efficiency.
Meanwhile, their counterparts at Mayo Clinic Hospital’s Methodist campus successfully accepted a wage agreement earlier in March, resulting in substantial wage increases of at least 6% for all staff, with select individuals based on roles and seniority experiencing even greater financial gains, further highlighting the disparities in compensation between the two campuses.
Wallace emphasized that the current wage differences have influenced staffing strategies at Saint Marys, stating, “They’re losing Saint Marys employees over to the other hospital (campus),” which underscores the competitive nature of healthcare staffing in the region. “That’s not to say that Methodist is fully staffed — they still have a staffing issue, as well — but I think Mayo does want to try to bring back some more pay parity and pay increases to recruit and retain more staff,” indicating a need for strategic planning going forward.
Additionally, representatives for the Methodist bargaining unit are preparing to resume negotiations, with Wallace noting that both the union and the employer are set to negotiate the full contract this fall. The current contract for the Methodist campus is due to expire on January 31, 2025, which coincides with the scheduled arbitration hearing for the Saint Marys campus, creating a unique overlap in the timeline.
“It’s going to be a similar fight,” Wallace predicted regarding upcoming Methodist contract discussions. “I think the main difference here is that we will be in negotiations before we find out the outcome of the arbitration at Saint Marys, so that is going to make these negotiations look a little different,” highlighting the multifaceted nature of the negotiations across both campuses.
In a statement to the Post Bulletin, Mayo Clinic expressed its commitment, stating it “values its hard-working teams and would like to establish a mutually beneficial contract as soon as possible to provide clarity and peace of mind,” emphasizing the organization’s desire for stability amid ongoing labor challenges.
This story has been updated to include a statement from Mayo Clinic.
**Interview with Hallie Wallace, SEIU Organizer and Lead Negotiator for Mayo Clinic Hospital-Saint Marys**
**Editor:** Thank you for joining us, Hallie. Can you start by giving us a brief overview of the current situation regarding the arbitration with Mayo Clinic?
**Hallie Wallace:** Absolutely. We’re currently facing a significant contract dispute with the Mayo Clinic which has escalated to an arbitration hearing scheduled for late January 2025. Our previous contract expired on April 23, and we’ve been negotiating a new agreement since February. Unfortunately, those negotiations have been slower than we anticipated due to differing priorities and some complicated discussions.
**Editor:** You mentioned the slower pace of negotiations. Can you explain what factors contribute to that?
**Hallie Wallace:** Yes, it’s often a tedious process that moves at what I’d call a “lawyer pace.” There are many legal protocols to follow, and both sides have their own interests to advocate for. This has created some friction, and ultimately led us to vote overwhelmingly to pursue arbitration to reach a resolution.
**Editor:** The arbitration hearing seems to signal a critical juncture. How does it work, and what are the expectations for both sides?
**Hallie Wallace:** The arbitration process involves two distinct panels. Each party selects its own arbitrator, and a neutral arbitrator is appointed. Mayo has chosen one of their lawyers from Littler, and we’ve selected Jamie Gulley, the president of SEIU Healthcare Minnesota & Iowa. Both sides will present their cases, and typically, the neutral arbitrator’s perspective will greatly influence the final decision.
**Editor:** What are the primary issues still at an impasse as you head into arbitration?
**Hallie Wallace:** The key sticking points include wage increases, adjustments to mandatory overtime policies, and the length of the new contract itself. There is some movement, as Mayo’s wage proposal for arbitration is higher than what was on the table initially, but it’s still not quite where we believe we need it to be.
**Editor:** It’s encouraging to hear there is some progress on wages. Can you touch on the collective efforts among union members during this process?
**Hallie Wallace:** Yes, solidarity has been a powerful tool for us. In May, we organized an informational picket outside the hospital, which demonstrated our commitment to advocating for better conditions. Importantly, we’ve also voted to regain our right to strike, which we had previously relinquished in exchange for the arbitration process. This decision underscores our readiness to fight for what we deserve.
**Editor:** how do you see the outcome of these negotiations impacting patient care and operational efficiency at Mayo Clinic Hospital Saint Marys?
**Hallie Wallace:** Our bargaining unit consists of various essential healthcare roles—everything from surgical technologists to environmental services workers. The decisions made in this arbitration will directly affect not just our livelihoods but also the quality of care patients receive. If we secure a fair contract, it will lead to better morale, retention, and ultimately, better patient outcomes.
**Editor:** Thank you for sharing your insights, Hallie. We wish you and your team the best as you move forward with the arbitration.
**Hallie Wallace:** Thank you for having me. We appreciate the support and attention to this important issue.
