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2018 Kaiser Permanente-Alliance National Agreement

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Presentation on theme: "2018 Kaiser Permanente-Alliance National Agreement"— Presentation transcript:

1 2018 Kaiser Permanente-Alliance National Agreement
Summary of key provisions for workers, managers and physicians March 2019

2 Labor Management Partnership
21 Years of Successful Partnership Established in 1997 as a strategy for frontline engagement, workplace innovation and performance improvement Measurable results for KP members and patients, union-represented workers and the organization Jointly led and funded by Kaiser Permanente and participating unions Recognized as an effective forum for solving problems, engaging frontline workers and sharing successful practices 2

3 Results for Both Parties
Performance Improvement, Workplace Innovation, Growth 1996 2005 2018 82,000 129,000 57,000 15,000 improvement projects started in 2018 Membership growth in partnership unions 3

4 New Partnership Agreement
In May 2018, KP and the Alliance of Health Care Unions signed a new Labor Management Partnership Agreement to recommit to core principles, including: Adhere to norms and behaviors reflecting mutual respect, trust and collaborative problem solving Refrain from legislation, ballot initiatives or other conduct that may harm another member of the partnership Expedited processes to resolve disputes 4

5 Commitment to Partnership Operational Excellence
2018 National Agreement With a new Partnership agreement in place, KP and the Alliance negotiated a 3-year labor contract, the 2018 National Agreement. The National Agreement furthers the goals of the Partnership, with a focus on: Economics Commitment to Partnership Operational Excellence 5

6 Across-the-Board Wage Increases
Economics: Wages Across-the-Board Wage Increases Region 2018 2019 2020 SCAL, NW  3% 2.75% CO 2% 1% (for 2021 as well*) GA, HI, MAS 2.25% Lump Sum Payments Region 2018 2019 2020 SCAL, NW 0% 0.25% CO None GA, HI, MAS, WA *Provided KPCO projects operating income above the planned 2% operating margin sufficient to fund an additional 1% ATB for Alliance union members 6

7 Economics: Medical and Dental Highlights
Active Medical 2019: No changes in any region in 2019* Starting in 2020, employees have same office co-pay of $10** Reopener for co-pays in all regions in 2021 Retiree Medical Employees in CO, GA, HI, MAS, NW who retire on or after January 1, 2021, will receive $2,500 per year of service (up from $2,000) in a Health Reimbursement Account (HRA), consistent with funding for employees in other regions. Retiree medical premium subsidy discontinued for employees hired after January 1, 2021 Dental Diagnostic and preventive services covered 100%, basic services 90% *Except IUOE 501 transitions to SCAL $5 co-pays in 2019 **Except Colorado Region 7

8 Economics: KP Washington
KPWA negotiated across-the-board wage increases before joining the Alliance of Health Care Unions, which are still in effect. In addition, under the 2018 National Agreement: Across-the-board increase of 2% effective October 2019 for Professional/technical and Optical units Across-the-board increase of 2.25% effective October 2020 for Pharmacy units KPWA now has an HRA program starting at $250 per year of service 8

9 Economics: Sustaining Our Partnership
New KP-Alliance Partnership Trust Fund to support partnership programs and activities KP to contribute $8 million per year, plus $2 million in 2018 and $2 million in 2019 for start-up costs 9-cent per hour union wage diversion continues Joint Wage Committee to review job classifications and pay rates to reach joint understandings in preparation for next round of national bargaining All earlier Labor Management Partnership agreements and side letters that do not have expiration dates are in effect for the Alliance, for instance, the Employment and Income Security Agreement (EISA), etc. 9

10 Commitment to Partnership
Code of conduct clarifies what labor and management can expect from each other as partners Joint committee to study status of the Partnership and develop a plan for the future, with help of a statistically valid employee survey Continued support for unit-based teams and their performance improvement work Alliance union contract specialists ratio increased to 1 specialist per 1,200 union members 10

11 Commitment to Partnership
Total Health: Continued training and support for UBT health and safety champions; Path to Performance to include additional health and safety targets; Total Health Incentive Plan discontinued Partnership training for middle managers, frontline staff and new hires LMP Strategy Group to meet at least twice a year to provide oversight of a joint project action plan for keeping Partnership on track 11

12 Operational Effectiveness
Joint sponsorship team at regional levels to oversee implementation of staffing per National Agreement language Joint Partnership subgroup to identify best practices for sharing information on budget and financial performance with frontline workers Improved Performance Sharing Program (PSP): All regions have a financial gate for full payouts If region doesn’t meet its financial gate, Alliance-represented workers can get up to $1,000, pro-rated among the goals met National attendance committee to convene, develop best practices 12

13 Enhanced benefits include:
Educational Trust Ben Hudnall Memorial Trust funding increased from 0.4% of Alliance payroll to 0.5%, to ensure stable funding for training, career counseling and career development Enhanced benefits include: $3,000 per person/year for education, training, professional development and degree, certification or licensing needs Tuition reimbursement: amount allowed for travel to increase to $750 13


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