IUOE Local 39 Bargaining Update: Last, Best, and Final Offer

This message is sent on behalf of Debora Catsavas, Senior Vice President, Human Resources, KFHP/H; and Darin Tankersley, PhD, Chief of Medical Center Administration and Operations, TPMG.

To KP Engineers,

On March 1, Kaiser Permanente met with Local 39 leaders to continue negotiations on a new contract. Unfortunately, the union has not made overall economic movement in its counteroffers, despite many months at the bargaining table and multiple enhanced offers on our part to advance the conversation. In an effort to reach an agreement, we provided our last, best, and final offer to union leadership and are asking them to give you, our Kaiser Permanente employees, the opportunity to vote on our offer and move forward together.

What does this new offer include?

Our last, best, and final offer increases our already strong wages and excellent benefits package. We have listened to the union’s feedback and put forth a strong final offer – with no takeaways – that includes the following:

  • 7% increase in wages over three years, including an additional 2% lump-sum payment in year three.
  • $2,500 lump-sum payment when the contract is ratified, paid within 60 days.
  • 12% increase in employer pension contributions over three years. This increase could amount to an additional $5,500 in contributions over the life of the agreement.
  • $20,000 increase to the group life insurance benefit, from $5,000 to $25,000, which is 100% paid by KP.
  • 25% increase to the annual dental insurance maximum, bringing it up to $1,500.
  • A continued 3% employer contribution to the Defined Contribution Plan.

The offer includes a number of enhancements to our previous one from November, including:

  • Doubling your lump sum payment in 2023;
  • $1,000 more to your ratification bonus, up to $2,500; and
  • Significant increases in your pension payments for all three years of the contract, from 4% over three years, to 12%

We met in earnest to reach an agreement with union leadership and we are disappointed they have not been receptive to our enhanced and good-faith offers. Union leadership has not made overall economic movement in its counteroffers, which is why we are determined to drive progress and share the details of our offer directly with you, our Kaiser Permanente employees.

What happens next?

We encourage you to review the details of our last, best, and final offer presented to Local 39 leadership on March 1, and to discuss the details with your families. We have asked Local 39 leadership to bring the offer directly to you for a vote.

We appreciate your ongoing dedication and contributions, especially as we continue to navigate the pandemic and work toward an agreement. This offer is representative of our commitment to provide our people with excellent wages and benefits while fulfilling our mission to provide affordable care to our members and patients.

If you have any questions, please reach out to your union representatives.

Thank you,

Deb Catsavas
Senior Vice President, Human Resources, KFHP/H

Darin Tankersley
PhD, Chief of Medical Center Administration and Operations, TPMG

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