Our statement on the Alliance of Health Care Unions’ strike

Since May, we’ve been actively working with the Alliance of Health Care Unions to reach new national and local agreements in support of our dedicated employees. At the heart of this negotiation is a dispute about wages.

A strong, comprehensive offer

We recognize our employees’ hard work and have offered a strong contract proposal that pays off immediately and over the long term. Alliance-represented employees currently earn, on average, 16% more than peers elsewhere. Our offer increases their already above-market wages over the 4-year contract, and enhances their high-value medical plans and retiree benefits — benefits that have long made Kaiser Permanente an employer of choice. Our offer includes:

• Wage increases of 21.5% over 4 years
• Plus another 0.5% wage increase offered at each local bargaining table
• Plus annual salary-step increases, which will add even more
• And some markets have additional market wage adjustments, which add as much as an additional 3% to base salaries

For example: A registered nurse represented by United Nurses Associations of California/Union of Health Care Professionals in Southern California earning $77.34 per hour today would reach $101.69 per hour by the end of the contract — a 31.5% increase including step and base pay raises; and that does not include overtime. That’s an annual jump from $160,861 to $211,513 for a full-time nurse.

In contrast, the Alliance is demanding an excessive wage increase totaling 25% over 4 years.

The seemingly small percentage difference between the 2 proposals actually means significantly more because it is multiplied across 60,000 employees and causes related benefit increases over 4 years. The difference between a 21.5% and a 25% increase is about $300 million a year in salary alone by the end of the contract.

• The current payroll for our Alliance employees is $6.3 billion a year. Our wage offer would increase pay by a total of $1.9 billion by the last year of the contract.
• The union’s demand would increase pay by more than $2.2 billion.

To be able to afford the higher wages in our offer, we’re reducing internal costs and optimizing operations. But the additional wage costs of the unions’ demands would mean that more rate increases for Kaiser Permanente members and customers will be unavoidable.

At a time when the cost of health care continues to go up steeply, and millions of Americans are having to make the difficult choice to go without coverage, it’s critical that we keep quality, accessible health care coverage affordable — while attracting and retaining top talent and keeping Kaiser Permanente a great place to work and receive care. Our offer does all this.

Strike is unnecessary and disruptive

We respect the Alliance and value their members — our employees — for the vital role they play caring for our 12.6 million members. 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. This strike is unnecessary when such a generous offer is on the table. It is designed to disrupt the lives of our patients — the very people we are all here to serve.

Importantly, not all of the Alliance unions currently in negotiations are 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.

Prepared to maintain care during strike

During the strike, our hospitals and medical offices will remain open. Members also have 24/7 access to same-day care through Get Care Now on our mobile app. Members can find the latest updates on care impacts at kp.org.

In some cases, we are 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 are 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.

We remain committed to bargaining in good faith for a fair agreement that balances fair pay with high-quality, affordable care. We will continue providing the care our members rely on while honoring employees and protecting patients.