Local 39 Bargaining Update, Jan. 31, 2024

To our engineers,

As you are aware, Kaiser Permanente’s bargaining team met with IUOE Local 39 leaders today, and unfortunately, we were still unable to reach a tentative agreement. Since November of last year, we have continued to significantly improve our offers for agreement — all of which have been rejected by Local 39.

We believe it is time to bring this bargaining table to a close, and, to that end, our bargaining team presented Local 39 with our Last, Best, and Final offer. We believe this offer is reasonable and fair given the current business environment and challenges. We further believe our engineers should be given the opportunity to vote on this proposal, and we have asked Local 39 leaders to take this offer to a vote.

Our Last, Best, and Final offer is outlined below.

  1. 6-year agreement from Sept. 18, 2021 – Sept. 19, 2027
  2. Across-the-board wage increases – 4%, 4%, 4%, 5%, 5%, 5%; at total of 27% wage increases, compounded over the 6-year period
  3. *Enhanced lump-sum payment, contingent on ratification by March 2, as follows:
    • If hired prior to Sept. 25, 2022: $18,000
    • If hired on or after Sept. 25, 2022, but before Sept. 25, 2023: $10,000
    • If hired on or after Sept. 25, 2023: $5,000
  4. Annual dental coverage maximum increased to $1,500 from $1,000
  5. Group life insurance benefit increased to $25,000 from $5,000
  6. Increased pension contributions of 4% annually through Sept. 18, 2026
  7. Maintains the 401(k) defined contribution at 3% through Sept. 19, 2027

 

*Should the offer not be ratified by the union before March 2, our proposal on lump-sum payments will be modified as follows:

  • If hired prior to Sept. 25, 2022: $16,000
  • If hired on or after Sept. 25, 2022, but before Sept. 25, 2023: $8,000
  • If hired on or after Sept. 25, 2023: $3,000

All other proposals of our Last, Best, and Final offer will remain unchanged. Contact your Local 39 leaders to vote.

As always, thank you for following these latest developments and for everything that you do for our organization.

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