Under the terms of separate, five-year contracts, about 34,000 workers in the state expect their wages to rise at least 12%, with lump sum payments added thereafter.
Two labor unions in California announced Monday that they have reached separate contract deals with major providers in the state.
Oakland-based Kaiser Permanente, which operates 21 medical centers and other facilities in central and northern California, agreed to a 12% across-the-board wage increase for the 19,000 registered nurses and nurse practitioners it employs, according to the California Nurses Association (CNA).
San Francisco-based Dignity Health, which operates throughout California, agreed to a 13% wage increase over five years for the 15,000 union members it employs as healthcare workers, according to SEIU-United Healthcare Workers (UHW) West.
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The five-year deal with Kaiser Permanente is pending ratification by CNA members, while SEIU-UHW members already ratified their five-year deal with Dignity Health.
“Our new contract maintains employer-paid family healthcare and provides rising wages, and that security and peace of mind enables us to focus on caring for our patients,” Dennis Anderson, a laboratory assistant who works for Dignity at Mercy Hospital in Folsom, California, said in a statement.
The deal details: Kaiser Permanente
The tentative agreement with Kaiser Permanente will ultimately benefit patients, according to CNA Executive Director Bonnie Castillo.
"Protecting the economic security of our future RNs is essential to defending the health of everyone who will be a patient today and tomorrow," Castillo said in a statement. “This agreement gives us a strong foundation for health security for Kaiser nurses and patients for the next five years in a turbulent time of health care in our state and nation.”
Key provisions of the contract, according to CNA, include the following:
- Additional staffing: Kaiser will add 150 RN full-time-equivalents to assist in its migration to a new computer system, with 106 of those positions to be posted within 90 days of the contract’s ratification.
- One wage scale: Kaiser agreed to withdraw a proposed four-tier wage scale for RN/NP new hires—a proposal the union said would otherwise “promote workplace divisions between current nurses and new RN graduates.”
- Wage increases: The agreement calls for 12% wage increases for all RNs and NPs, with a 3% lump sum over five years.
The agreement also calls for 600 formerly non-union RN patient care coordinators to be included in the contract with the other RNs and NPs employed by Kaiser Permanente.
Debora Catsavas, senior vice president of human resources for Kaiser Permanente Northern California confirmed Tuesday that the organization had reached a tentative five-year contract with the union.
"This agreement reflects our respect for Kaiser Permanente nurses and the excellent care they provide to our patients and members. It is aligned with our commitment to high quality care, affordability and being the best place to work in health care," Catsavas said in a statement released via email to HealthLeaders Media.
The deal details: Dignity Health
The ratified agreement between SEIU-UHW and Dignity Health—which lasts through April 30, 2023—includes the following key provisions, according to the union:
- Benefits: Union members employed by Dignity will keep their fully paid, employer-provided family healthcare.
- Wage increases: Workers secured 13% raises over five years, with a 1% bonus in the second year.
- Funding for training: Dignity also agreed to contribute another $500,000 annually to a joint labor-management training program designed to keep workers on top of the latest changes in healthcare, the union said.
This deal comes as Dignity Health prepares to merge with Catholic Health Initiatives, based in Chicago, which would form one of the largest nonprofits in the country.
Darryl Robinson, executive vice president and chief human resources officer for Dignity Health, said Tuesday that the system is pleased with the SEIU-UHW contract.
"In addition to annual wage increases ranging from two- to three- percent over five years, there will not be any changes to cost sharing of dependent health care coverage for these employees," Robinson said in a statement released via email to HealthLeaders Media.
"This agreement honors our commitment to our employees," he added, "while acknowledging the significant challenges Dignity Health and employers everywhere in the U.S. face with the increasing cost of health care."
This story has been updated to include comments from Kaiser Permanente and Dignity Health.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.