October 24, 2025

Strong offer, stronger future

Kaiser Permanente’s economic proposal rewards Alliance-represented employees for their hard work and dedication, and helps keep our care affordable.

This message was sent to Alliance-represented employees on Friday, October 24.

As you know, we resumed bargaining with the Alliance of Health Care Unions this week.

Following the 5-day work stoppage, we were pleased to be back at the bargaining table.

Previously, we reached 52 tentative agreements. During bargaining this week, we reached 1 more on paid lactation break time. It is our desire to resolve all issues at the bargaining table.

We recognize that across-the-board wage increases are a key priority for you, for the Alliance, and for Kaiser Permanente.

We’ve heard your concerns about lower wage increases during the pandemic and the impact of inflation since then. We responded by offering the strongest compensation package in Kaiser Permanente’s national bargaining history — 21.5% over 4 years, with 16% of that increase happening in the first 2 years on top of step structures built into wage schedules.

We want to clarify with examples what this offer means in terms of dollars in your pocket.

Approximately 30% total value over 4 years

Under Kaiser Permanente’s current proposal:

The average wage for a registered nurse in Southern California represented by UNAC/UHCP is $77.34 per hour. These individuals would see their hourly rate increase to $101.69 by the end of the 4-year contract — an increase of 31.5%, which includes across-the-board pay increases and step increases. This means a full-time nurse would see an increase in wages from $160,861 to $211,513 per year.
A newly-hired pharmacist in Hawaii represented by UNAC/UHCP earning $79.38 per hour today would see their hourly rate increase to $97.92 by the end of the 4-year contract — an increase of 23%, which includes ATB pay increases. This means a full-time pharmacist working 40 hours per week would see an increase in wages from $165,110 to $203,674 per year.
A newly-hired respiratory care practitioner in the Northwest represented by OFNHP Technical Employees earning $35.29 per hour today would see their hourly rate increase to $54.92 by the end of the 4-year contract — an increase of 55%, which includes ATB pay increases, wage scale adjustment, and step increases. This means a full-time respiratory care practitioner working 40 hours per week, would see an increase in wages from $73,403 to $114,234 per year.
A housekeeping aide in Hawaii with at least 1 year of experience earning $23.47 per hour would see their hourly rate increase to $30.90 by the end of the 4-year contract — an increase of 31.7%, which includes ATB increases and adjustment to minimum wage. This means a full-time housekeeping aide working 40 hours per week would see an increase in wages from $48,818 to $64,272 per year.

Overall, our offer represents a cost increase to Kaiser Permanente of approximately 30% over 4 years and significant wage increases for you. Please see the chart below.

Cost of Kaiser Permanente’s 21.5% wage offer over 4 years

* The 29.5% total does not include additional compensation enhancements such as new minimum rate adjustments, job-specific wage adjustments, and performance sharing plan payouts that will boost pay even further.
21.5% wage increase compounded over 4 years	23.3%
Step increases of 5.6% compounded over 4 years	5.7%
Local adjustments	0.5%
Total increase in wage costs over the 4-year contract	29.5%* Nearly $2 billion in additional annual wage costs

During one of the more challenging times in health care, we are recognizing your hard work and dedication with higher market wage increases totaling nearly $2 billion in additional Alliance payroll costs. Anything beyond our current offer will make health care less affordable for our members and customers.

Our current philosophy is to pay employees on average as much as 10% above the market in which they work. Alliance-represented employees are currently being paid on average 16% above market and with our new offer, Alliance-represented employees will be paid 21% above market at the end of the 4-year contract.

Our economic offer is strong, rewards your commitment to our mission, and accounts for the lower increases during the pandemic.

We remain hopeful that we can conclude negotiations with an agreement that will continue to support you and your family while maintaining the affordability of our high-quality care and service.

We’ll keep you informed as bargaining continues next week. Thank you for the important work you do for our members and patients every day.