October 10, 2025

Latest bargaining session fails to reach agreement

We are committed to negotiating a fair contract with the Alliance, despite the union calling for a 5-day strike.

This message was sent to Alliance-represented employees on Friday, October 10.

We respect the Alliance of Health Care Unions and value all of you for the vital role you play in helping us to provide high-quality health care and support to our 12.6 million members every day.

Since May, we’ve been actively working to reach new national and local agreements — achieving 52 tentative agreements, holding more than 900 local bargaining sessions, and closing 17 of 54 local tables. We’ve taken multiple steps to move negotiations forward — enhancing proposals, initiating mediation, and extending national and local bargaining. Even after receiving 10-day strike notices, we continued negotiations this week because we remain committed to reaching a fair agreement if possible.

Unfortunately, the Alliance has made little meaningful progress. Despite our best efforts to reach a fair agreement that supports you and sustains high-quality, affordable care, the Alliance has scheduled a strike which serves no one, least of all you, our members, and our patients.

Our offer demonstrates how much we value you — our employees — while balancing our obligation to keep our high-quality care affordable.

From the start, the Alliance asked that we account for lower pandemic-era wage increases and inflation. We’ve responded with an offer that increases wages by 21.5% over the 4-year contract and includes the largest first- and second-year increases offered in national bargaining over the past 2 decades.

Our offer means Alliance-represented employees, who today are paid on average 16% above market, will be paid on average 21% above market in 2029.

Year Wage increase
October 2025 6.5%
October 2026 6.5%
August 2027 3%
October 2027 2.5%
October 2028 3%
Total ATB over 4 years 21.5%

The above does not include the impact of the 0.5% increase made available at the local bargaining tables or step increases — which make our already strong offer even stronger.

Beyond wages, our proposal also enhances benefits that are already strong and some of the best provided in the country, and continues investing in your growth, career development, and long-term financial stability.

The simple truth is that our 21.5% wage offer would increase the current $6.3 billion annual payroll for Alliance employees by $2 billion by 2029. To support our offer, we are expanding our efforts to reduce our internal costs and optimize operations. Anything beyond 21.5% will increase rates for our members and customers, cause a loss of membership, and leave more people without the coverage they depend on.

In uncertain economic times, our offer provides peace of mind — while a strike would only disrupt your income.

We believe there’s a better path forward — one that protects your income, strengthens your compensation, and ensures we continue delivering on our mission. That means coming to the table ready to do the hard work our partnership stands for — and that our patients, communities, and customers expect.

A strike will not bring us closer to an agreement. Progress can only come through dialogue, not disruption. 

Our commitment to you remains unchanged. We value your dedication and hope you choose not to strike and choose to remain with your patients and coworkers who depend on you.

For more details about our latest economic offer and ongoing updates, please visit the Kaiser Permanente Alliance National Bargaining page.