Local 39 Bargaining Update, March 15, 2024

To our engineers,

Earlier today, Kaiser Permanente’s bargaining team met again with IUOE Local 39 representatives.

We were disappointed to learn that our Last, Best, and Final offer was rejected on Feb. 28 by Local 39. Local 39 also presented a counter proposal.

We stand by our Last, Best, and Final offer that still remains on the table. As a reminder, below are the offer’s details.

• 6-year agreement from Sept. 18, 2021 – Sept. 19, 2027
• Across-the-board wage increases – 4%, 4%, 4%, 5%, 5%, 5%; a compounded wage increase of 30% over the 6-year period
• Lump-sum payment:
  • 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
• Effective Jan. 1, 2025, annual dental coverage maximum increased to $1,500 from $1,000
• Effective Jan. 1, 2025, group life insurance benefit increased to $25,000 from $5,000
• Increased prospective pension contributions: about 12% increase to take effect the first month after ratification, followed by 4% annual increases through Sept. 18, 2026.
• Maintains the defined contribution at 3% through Sept. 19, 2027

We will update you with additional bargaining updates as they occur.

Thank you for all the work you do for our organization’s mission of delivering affordable, high-quality care to patients, members, and the communities we serve.