the health strategist
institute for strategic health transformation
& digital technology
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO),
Chief Editor and Senior Advisor
October 5, 2023
One page summary
What is the message?
Over 75,000 Kaiser Permanente workers, in what organizers claim is the largest healthcare worker strike in U.S. history, have embarked on a three-day labor demonstration due to failed contract negotiations.
This strike highlights issues such as understaffing and wage disparities, impacting patient care and access.
Key Takeaways
Historic Healthcare Worker Strike:
More than 75,000 Kaiser Permanente employees across multiple states have initiated a three-day strike, while a one-day strike has started in the mid-Atlantic region. The strike is organized by the Coalition of Kaiser Permanente Unions, representing 85,000 members.
Diverse Workforce:
Participating workers come from various job titles, including licensed vocational nurses, technicians, and housekeepers, collectively demonstrating against Kaiser Permanente, a large nonprofit provider and insurer.
Contract Negotiations:
The strike follows unsuccessful contract bargaining sessions, marked by accusations of understaffing and inadequate pay by the unions. The previous contract expired on September 30, amidst protests and criticisms from the unions.
Staffing Crisis:
Workers like Jessica Cruz express concerns over short-staffing, leading to rushed care and patient dissatisfaction. The unions argue that Kaiser executives have not addressed these critical issues.
Kaiser’s Response:
Kaiser Permanente asserts that they have made “progress” in bargaining meetings and that a strike is unjustified. Their goal is to reach a fair agreement that sustains high-quality, affordable healthcare.
Previous Contract:
The last negotiated contract in 2019 included a $130 million commitment for a workforce development program, annual raises, and a ban on subcontracting.
Current Offer:
Kaiser’s offer includes wage increases from 12.5% to 16% over four years, proposed minimum wages of $21 to $23, and incremental increases over the contract’s duration.
Union Perspective:
The unions emphasize Kaiser’s substantial net income and highlight issues like short staffing and competitive pay discrepancies, leading to inferior patient care.
Kaiser’s Financial Situation:
Kaiser acknowledges nearly $3.3 billion in six-month net income but attributes past losses to investments and a competitive labor market.
Patient Impact:
Kaiser assures that hospitals and emergency departments will remain open during the strike, with contingency plans in place to prioritize patient needs.
Statistics and Examples:
- 75,000+ Workers: The strike involves over 75,000 Kaiser Permanente workers, making it the largest healthcare worker strike in U.S. history.
- Failed Contract: The strike is a result of failed contract negotiations after the previous contract expired on September 30, 2023.
- Minimum Wage Proposal: Kaiser proposes minimum wages of $21 to $23, addressing wage disparities in different states.
- Kaiser’s Net Income: Kaiser’s net income stands at nearly $3.3 billion, even though it faced a $1.3 billion operating loss and a net loss of almost $4.5 billion in 2022 due to investments and labor market competition.
- Patient Care: Kaiser emphasizes the continued operation of hospitals and emergency departments during the strike, ensuring patient needs are a top priority.
This historic strike underscores the critical issues faced by healthcare workers and the challenges in reaching a mutually agreeable contract with Kaiser Permanente, impacting both workers and patient care.
DEEP DIVE
This summary was written based on the article “Largest healthcare worker strike in US history’ kicks off across Kaiser Permanente facilities”, published by Fierce Healthcare and written by Dave Muoio, on October 4, 2023.
To read the full article, access https://www.fiercehealthcare.com/providers/largest-healthcare-worker-strike-us-history-scheduled-begin-wednesday-across-kaiser
