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Local 39 Bargaining Update, Dec. 22, 2023

To our engineers,

Our bargaining team is serious about finalizing a deal with IUOE Local 39 that continues to provide a competitive total compensation package for you. Over the past several bargaining sessions, we have continued to significantly improve our proposal to reach a mutually beneficial agreement. In addition, we heard from Local 39 that retroactive pay was of great importance.

In today’s bargaining session between Kaiser Permanente and Local 39, our approach in attempting to reach an agreement was no different. We made significant changes to our proposal as follows:
• We proposed a 6-year contract term from Sept. 18, 2021 – Sept. 18, 2027, which would lock in your growth gains for this period.
• Right away, upon ratification of the agreement, you will receive a compounded wage increase of 12%, representing 4% increases for 2021, 2022, and 2023. An annual 5% wage increase will follow each year in 2024, 2025, and 2026.
• A lump-sum payment up to $15,000 based on date of hire
• An annual increase of 4% in pension contributions for the term of the agreement
• Your retiree medical coverage will remain the same for this period as well.

For more details on the proposal, please review the following flyer. Our next scheduled bargaining session is Jan. 4, 2024.

As always, thank you for following these latest developments and for everything that you do for our organization. Kaiser Permanente leaders understand and appreciate your expertise and hard work. What you do every day enables all of us to continue to provide high-quality, safe care to our members and patients.

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