Kaiser Permanente and Unions Reach New Collective Agreement, Ending Work Stoppages

2023-10-13 20:20:13

An agreement was reached in the United States on a new collective agreement between one of the largest American private health networks, Kaiser Permanente, and union organizations, putting an end to a social conflict which had led to work stoppages. The Californian group has notably committed to increasing, on average, salaries by 21% over the duration of this new collective agreement, i.e. four years, the group and the unions indicated in a joint press release published Friday. It took more than six months of discussions for the two parties to reach an agreement.

At the beginning of October, the unions called for a three-day work stoppage, which affected more than 75,000 of the 85,000 employees of Kaiser Permanente, whose headquarters is in Oakland (California). The organizations had also filed notice for a longer strike, from November 1 to 8, which was lifted on Friday, they said. The unions, united in a coalition, demanded salary increases, but also a strengthening of the workforce and protection once morest the outsourcing of services.

Since the coronavirus pandemic, many healthcare professionals have left the field and the sector is experiencing significant recruitment difficulties. Kaiser Permanente is one of the largest health care networks in the United States, with locations in eight states and the U.S. capital, Washington. It claims some 12.7 million policyholders. Most of the medical system in the United States depends on the private sector, whether insurers or health professionals.

Retroactive effect

The agreement, with retroactive effect from October 1, must still be ratified by employees, provides for an increase, over three years, in the minimum wage, which will increase to 25 dollars per hour in California and 23 in other states. It also includes an increase in participation in results, as well as measures to deal with staff shortages.

Unions and businesses thanked the Minister of Labor, Julie Su, “for her decisive role in the conclusion of the negotiations”. This lawyer by training spent most of her career in California and was very involved in this matter, to the point of participating in several negotiation meetings.

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