We remain committed to an agreement that balances fair pay with affordable care.
Since May, we’ve been actively working with the Alliance of Health Care Unions to reach new national and local agreements in support of nearly 61,000 dedicated employees. At the heart of this negotiation is a dispute about wages.
We’ve recognized our employees’ hard work and responded with a strong proposal that provides immediate benefits.
Alliance-represented employees currently earn, on average, 16% more than peers elsewhere. Our latest offer increases their already above-market wages by an additional 21.5% over the 4-year contract. The offer also enhances employees’ high-value medical plans and retiree benefits — benefits that have long made Kaiser Permanente an employer of choice. We value every member of our team and our history of collaboration with labor unions.
The Alliance began bargaining seeking a 38% wage increase over 4 years and now demands 25% — a figure out of step with today’s economic realities and rising health care costs. This would dramatically increase the current $6.3 billion annual payroll and lead to higher rates for members and customers, with serious market implications.
Our 21.5% offer will increase payroll for this group by nearly $2 billion in total by 2029. To support this level of increase, we’re reducing internal costs and optimizing operations. Anything beyond 21.5% will require us to further increase rates for our members and customers, at a time when health care costs are increasingly unaffordable and many of them are having to make the difficult choice to go without coverage.
We have a responsibility to do the right thing for our employees and our members and customers.
We respect the Alliance and value their members — our employees — for the vital role they play caring for our 12.6 million members. A strike is unnecessary when a generous offer is on the table. The strike is designed to disrupt the lives of our patients — the very people we are all here to serve.
Since May, we’ve worked to reach new national and local agreements — achieving 52 tentative agreements, holding over 900 local bargaining sessions, and reaching comprehensive agreements at 17 of 54 local tables. We’ve enhanced proposals, initiated mediation, and extended bargaining. Even after receiving 10-day strike notices, we continued negotiating, seeking agreement.
Unfortunately, the Alliance has made little meaningful progress. Despite our best efforts to reach a fair agreement that supports our employees and sustains high-quality, affordable care, some of the Alliance unions have called a strike that serves no one, least of all our members and patients.
Importantly, not all of the Alliance unions currently in negotiations will be taking part in the strike — the striking unions represent about 43,000 workers. Many of our staff have shared that they do not intend to take part in the strike.
We’re actively preparing for a 5-day strike in California, Oregon, and Hawaii from 7 a.m. Tuesday, October 14 to 7 a.m. Sunday, October 19. We expect normal operations to resume afterward.
For months, we’ve been preparing contingency plans to ensure our members will continue to receive safe, high-quality care. During the strike, our hospitals and nearly all of our medical offices will remain open. Members also have 24/7 access to same-day care through Get Care Now on kp.org and our mobile app.
In some cases, we’re shifting appointments to virtual care (phone, video, e-chat) and may need to reschedule certain appointments, elective surgeries, and procedures.
Our facilities will be staffed by physicians, experienced managers, and trained staff, with added licensed contract professionals as needed. We’re onboarding up to 7,600 nurses, clinicians, and other staff to work during the strike, the majority of whom have worked at Kaiser Permanente before. In addition, more than 1,000 of our employees have volunteered to be reassigned to work in strike locations.
Members can find the latest updates on care impacts at kp.org.
We remain committed to bargaining in good faith for a fair agreement that balances fair pay with high-quality, affordable care. We’ll continue to provide the care our members rely on while honoring employees and protecting patients.