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KP-CNA Bargaining Update, Nov. 10, 2022: KP’s unprecedented proposal for Northern California nurses

From the very first day of bargaining, Kaiser Permanente has expressed our commitment to resolving negotiations with CNA in a manner that honors our nurses, addresses our members’ needs, and avoids unnecessary conflict.

Today, to resolve the open issues in negotiations and demonstrate our unwavering commitment to you, we presented a proposal that includes wage increases higher than any in the past 10 years. Our proposal will bring Northern California nurses’ compensation up to or above the rest of the market in the San Francisco Bay Area and keep our nurses well above market in Sacramento and Fresno.

Highlights of KP’s economic proposal for Northern California nurses

• 21 ¼ % in pay increases over a 4-year contract:

2023: 6%

2024: 5.25%

2025: 5%

2026: 5%

• $1,000 lump sum payment 90 days after contract ratification

• NO takeaways

• Increase in tuition reimbursement to $3,000 per calendar year (up to $1,000 can be used for education-related travel and lodging expenses)

• A new 36th year 3% tenure step after completion of 35 years of continuous service, effective 1/1/2024

• Increase in the sick leave payout to 60% post-bank (up from 50%) for retirees on or after 1/1/2023

• One time FSA contribution of $500 for all benefit-eligible employees enrolled in a Health Care FSA on 1/1/2024

• An increase in language skills differential pay from $0.45/hour to $0.75/hour. Korean, Filipino dialects (Tagalog and Ilocano) and Armenian will be added to current differential-eligible languages.

Our proposal reflects the changing economy, including inflation, significant changes in the marketplace and our commitment to providing our employees with excellent pay and benefits.

Supporting nurses and addressing staffing issues

We also recognize that every health care provider, not just Kaiser Permanente, is facing staffing shortages and fighting burnout, and that Kaiser Permanente is not immune. In spite of the acute shortage of nurses in the state, our commitment to being the best place for nurses to work has enabled Kaiser Permanente Northern California to hire about 3,300 additional nurses since 2021 of which 650 were new graduates hired through our nurse residency program.

To provide further relief for our nurses and address staffing shortages we are hiring hundreds more additional nurses each year – including hundreds of new graduates/nurse residents and specialty nurses – in addition to those we are already bringing on board through aggressive recruitment and hiring. As a result of all this work, we are proud that Kaiser Permanente has one of the lowest turnover rates for nurses in health care, and we don’t take that achievement for granted.

A firm commitment to reaching an agreement

Given the many agreements we have already reached in bargaining, including those around workplace safety, equity and diversity, and the generous economic proposal we have put on the table, we do not believe there is any reason for a strike. We believe that as the dedicated nurses you are, you would prefer to be at the side of our patients as we once again manage through a time when flu and RSV illness are affecting so many patients and COVID-19 is still very real and sickening thousands every day. We are grateful for your dedication and commitment.

We intend to remain focused on reaching an agreement and are ready to meet with CNA to conclude bargaining as soon as possible, and we’ll continue to keep you informed of our progress.

Thank you for all you do.

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