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Message to Local 39 engineers: Details about KP’s proposal — Opportunity to make up your own mind

This message is being 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 Our Valued Engineers,

We want to deliver a simple message – we want you back working alongside your co-workers taking care of Kaiser Permanente patients. We think bargaining has reached a point where we can find agreement and you can return to work.

In bargaining late last week with your union, IOUE Local 39, we delivered a comprehensive proposal that offers across-the-board pay increases and cash payments that are similar to our other employees’ and continues to include all our industry-leading benefits. Further, your retirement benefit would continue to be substantial, with several improvements.

We will continue to bargain in good faith, and we hope that Local 39 leaders will continue to do the same. That means more discussion, fresh ideas, and compromise. Right now, Local 39’s position is the same as before you went on strike. It simply is not in line with other employees, nor is it in line with our obligation to continue addressing the affordability of health care for our more than 4 million members.

We want to provide you an overview of our proposal so you can see for yourself what is on the table:

Under our proposal, Local 39 engineers will remain among the best compensated in the profession, with increased wages and lump sum cash payments. It includes several improvements to your benefits. There are no takeaways to your retiree medical coverage.

  • You’ll receive guaranteed wage increases over the 3 years of the contract: 3% increase in year one; 2% increase in year 2; and a 2% increase plus a 1% lump sum payment in year 3.
  • Plus, you will receive a lump sum payment of $1,500 to be paid within 60 days of ratification of the contract if a tentative agreement is reached by December 3, 2021.
  • Employer pension contributions will increase over the 3 years of the contract: 2% increase to pension contributions in year one; 1% increase in pension contributions in year 2; and a 1% increase in pension contributions in year 3.
  • The employer’s contribution to your Defined Contribution plan will continue to be 3%.
  • Your group life insurance benefit will increase to $25,000 and continues to be 100% paid by Kaiser Permanente.
  • Your annual dental insurance maximum will increase 25%.

Under Kaiser Permanente’s proposal, the average increase in base wages would total over $18,750 for full-time Local 39 represented employees for the life of the 3-year contract. On top of that, add in a potential total of $2,750 in lump sum payments. That’s over $21,500.

Contributions to the Local 39 pension trust could amount to an additional $2,000 over the 3-year agreement.

This proposal, which is also summarized here, is competitive and consistent with compensation for other Kaiser Permanente employees. We believe it deserves your consideration and ask that you encourage your union leaders to give you the opportunity to make up your own mind and vote on the proposal.

Thank you.

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