Kaiser Health Workers Approve Deal Granting 21% Wage Increase

Kaiser Permanente workers approved a new labor deal Thursday, winning sizable pay increases and after the largest US health-care strike on record.

The deal, approved by 98.5% of union members who voted, calls for a 21% wage hike for more than 85,000 workers over the next four years. It establishes a new minimum wage for Kaiser workers of $25 per hour in California and $23 per hour in other states.

Kaiser also promised in the agreement to launch training programs designed to fight turnover. The union has raised the alarm over employee burnout it says creates a dangerous situation for both workers and patients.

Additionally, the deal creates a new bonus structure that factors in an employee’s ability to lower their patients’ blood pressure and give preventative vaccines.

The Coalition of Kaiser Permanente Unions went on a three-day strike in October, accusing management of refusing to bargain in good faith over the short-staffing issue. It interrupted nonemergency care for 12.7 million Kaiser Permanente members, mainly in the West.

The new collective bargaining agreement will be in effect from Oct. 1, 2023, to Sept. 30, 2027, covering hundreds of Kaiser facilities in California, Colorado, Oregon, Washington, Hawaii, Maryland, Virginia, and Washington, D.C.

The nonprofit health-care consortium operates a self-contained system of hospitals, clinics, and pharmacies, in addition to providing insurance.

Steve Shields, senior vice president of labor relations for Kaiser Permanente, said following the deal that the company doesn’t expect rising costs for patients as a result of the agreement.