Agreements

Many of the several hundred health care workers who gathered at the Manhattan Beach Marriott on May 10 are used to working through the night—it goes with their jobs. But they aren’t used to waiting. By midnight, some were napping on the couches in the lobby. Others milled about in small groups, talking quietly. And some retired to their rooms and asked friends to call them if and when anything happened.

Finally, around 2 a.m., the news came: A subgroup had ironed out the final details. By 3 a.m., the hotel’s central ballroom was filled with cheering, hugging workers—and supervisors, middle managers and senior vice presidents. The 140 management and union negotiators who formed the Common Issues Committee (CIC) gave their unanimous thumbs-up to a new National Agreement that will guide the work of some 130,000 workers, managers and physicians in the nation’s largest private health system.

“It was like we had just won the World Series,” says Alan Kroll, director of the Clinical Contact Center in Colorado and a first-time member of the CIC. “We’d had our ups and downs as a team, but in the end, we all came through as a team. The energy and camaraderie was tremendous.”

R-E-S-P-E-C-T

“The energy of the room was not because we liked each other. It was because of the respect that partnership had brought,” says Ashwin Deo, an orthopedic technician in Sacramento and SEIU UHW member who served on the CIC.

The agreement, reached in the course of five three-day sessions from March to May, is the largest private-sector labor agreement negotiated in the United States this year. Like previous National Agreements, it covers not only wages and benefits but also goals related to service, quality, affordability, workforce and community health, and more. 

Yet how the CIC reached the agreement is even more remarkable than the agreement itself. Rather than engage in a power struggle, the negotiators used interest-based bargaining to solve problems. That process allowed it to focus on solutions to the biggest issue facing health care today—that it costs too much, and too few Americans can afford it—while maintaining Kaiser Permanente’s industry-leading wages and benefits.

Rather than chopping care or benefits to control costs, says John August, executive director of the Coalition of Kaiser Permanente Unions, the agreement “provides union members with the tools to tackle cost by improving care and efficiency. Improved care and efficiency, delivered by workers at the front line, are the key to extending quality care to every person in our country.”

“Our national bargaining is unique,” says Dennis Dabney, the senior vice president of National Labor Relations and the lead management negotiator. “There is not only a group of labor negotiators at the table, but a broad cross-section of our employees providing recommendations on how to better deliver high-quality, affordable care and ensure Kaiser Permanente is a great place to work well into the future.”

Moreover, the outcome is a testament to the interest-based approach to partnership, not just interest-based bargaining.

“As our facilitators told us, economic issues are tough to resolve in interest-based bargaining,” says Adam Nemer, care delivery finance officer in the Northwest and a member of the bargaining subgroup that focused on benefits. “In the end, we met both management and labor's key interests. But I suspect that was not just because of what happened at the benefits table. It was also the result of an open and honest dialogue on benefits between senior labor and management leaders over the past few years. It was about trust and transparency. In my view, we didn’t reach a solution just because of interest-based bargaining—but we couldn’t have gotten there without it.”

Revolutionary healthy workforce plan

As part of the solution to controlling costs, the agreement includes a revolutionary plan to create the healthiest workforce in the health care industry. Beginning in 2013, the agreement will reward the collective workforce achievement of reduced health risk factors, measured by body mass index (BMI), cholesterol levels, blood pressure levels, smoking rates and workplace injury rates.

“Unions and management agreed that health improvement is an essential strategy for reducing chronic conditions—one of the leading drivers of rising, unsustainable cost,” says SEIU UHW President Dave Regan. “This is a high-road, long-term strategy for the common good.”

Those involved in the process say it’s unlikely that the high road would have been taken had these been traditional, adversarial negotiations. As Joan Mah, an optometrist at San Rafael Medical Center in Northern California and a first-time observer representing her ESC-IFPTE Local 20 colleagues, put it: “Traditional bargaining is really about what I want and not about what is right….When you take the time to allow management and labor to surface their interests, it’s really looking for a global solution.”

“At times it was frustrating, but it was also interesting to see how the interest-based process led us to options we could work with,” says Jean Melnikoff, a senior director of human resources for Southern California, one of the management co-chairs of the workforce of the future subgroup.

Opening doors—and minds

Her sentiment was echoed by members of every subgroup. But that is not to say the process is easy.

“When things get difficult, you need to regroup and work your way through it,” says Arlene Peasnall, senior vice president of human resources in Southern California. “But you end up with better results and stronger relationships.”

“The people who’d done it before said, ‘It’s OK, it can be done,’” says orthopedic technician Deo. “Don’t be afraid of the tension in the room. Don’t be afraid of emotions, because that’s what gets creativity out….When labor and management are at the table, talking to each other as equals, and the ideas are valued equally—I think that opened a lot of doors. And minds, too.”

You get to a certain age, and it’s time for a makeover. Surely you understand.

We heard you whispering. In fact, it inspired us to conduct a statistically valid survey to make sure what we’d overheard was a true reflection of what you thought. Some of it was a pleasant surprise—such praise! But you were blunt, too: Awkward size. Overly long articles. Not enough variety. And so on. 

So, here’s our equivalent of slimming down and building some muscle. (Amazing what walking a half-hour a day will do!) With our new ’do, you’ll find:

• shorter articles and more of them
• more tips and tools, information you and your unit-based team can put to immediate use
• more coverage from all the regions
• and some fun

While we’re on the subject of our virtues: Our paper is certified by the Forest Stewardship Council, ensuring the use of responsible forest management methods that address social, economic and environmental issues.

Why does that matter? Well—working in partnership addresses profound social and economic issues, too. We hope you like our makeover because we want to serve you—the frontline workers, managers and physicians of Kaiser Permanente—well. Because what was achieved this spring in National Bargaining, the subject of this issue’s cover story, makes it clear what an extraordinary journey we are on together.

Each day, every day, Kaiser Permanente’s 3,500 unit-based teams are providing ever-better patient care and advancing our mission. Now, under the 2015 National Agreement, UBTs will have an even greater role to play—and higher expectations to meet.

The new contract, which took effect Oct. 1, 2015, calls for UBTs to bring the voice of KP members and patients into their work. Teams also will be making total health and safety a greater part of their activities. And they will undergo more rigorous, face-to-face performance assessments.

To help them meet the new expectations, there’s a cadre of expert peer advisors and coaches they can call on—unit-based team consultants and union partnership representatives (UPRs) trained in performance improvement methods. Both UBT consultants and UPRs support unit-based teams, but UPRs, who are coalition union-represented employees, also specifically mentor and support labor in UBT and performance improvement work. Both help teams sharpen their communication, data collection and analysis, and other skills needed to advance on the Path to Performance.

It’s a unique system to support workplace learning and innovation.

“I’ve learned a lot about how to build teams and how to use performance improvement tools,” says Gage Martin, an SEIU-UHW member and union partnership representative at the Santa Rosa Medical Center in Northern California. “I take that learning and help teams do projects in all areas of our Value Compass. It’s a great job.”

The UBT consultant and UPR roles were created, as a test of change, in 2008. Since then, they have helped KP set the standard for quality, service and the workplace experience, and delivered tens of millions of dollars in cost savings.

As we strive to deliver the promise of One KP—providing each member and patient with the best care experience, every time—we also need to have One LMP, with each person working in partnership, having the same resources available to them and the same accountability to upholding the National Agreement. UBT consultants and UPRs help make that happen.

Ten weeks of national bargaining between Kaiser Permanente and the Coalition of Kaiser Permanente Unions concluded Saturday, June 6, when 150 union and management representatives approved a tentative 2015 National Agreement. The agreement now goes to the 28 union locals that compose the coalition for ratification and to Kaiser Permanente senior leaders for approval.

The three-year tentative agreement is designed to help unionized workers and managers achieve quality, affordability and safety of care; prepare for jobs of the future; and develop innovative solutions to health care challenges. The agreement also will enable our 3,500 unit-based teams to better deliver award-winning care and service to Kaiser Permanente’s more than 10 million members and patients.

“This is an outstanding agreement that deepens our ability to provide affordable, high-quality care to our members and patients,” says Dennis Dabney, the senior vice president of National Labor Relations and Office of the Labor Management Partnership. “Kaiser Permanente leads the industry because it is a great place to work and a great place to receive care—and the two are inseparable.”

“We’re on year 18 of a remarkably successful strategy,” says Hal Ruddick, executive director of union coalition. “Our contract is better than ever, Kaiser Permanente’s quality and service scores are higher than ever, and the organization and unions are both healthy and growing. Partnership pays off for workers, consumers and mission-driven organizations like Kaiser Permanente.”

Agreement highlights

The agreement includes wage increases in each year of the agreement (see specifics below), provides operational flexibility and bolsters joint problem-solving capabilities. It builds on the successful 2012 National Agreement, strengthening provisions for workplace health and safety, providing additional funds for workforce training and development and ensuring the consistent application of partnership principles.

The new three-year tentative agreement includes:

• Across-the-board wage increases in each year of the agreement: All employees in Northern and Southern California represented by a coalition union receive 3 percent increases in the first two years and 4 percent in the third year. Employees in the regions outside of California represented by a coalition union will receive a 2 percent increase each year of the three-year agreement. In addition, they will receive a 1 percent increase at the end of the third year.
• Enhancements to benefits such as dental coverage, life insurance and tuition reimbursement. The tuition reimbursement was increased to $3,000 per employee per year. For the first time, tuition, dental coverage and life insurance are standardized for coalition union members across all regions.
• A long-term solution that protects retiree medical benefits for current and future retirees, with no net increase to retirees’ out-of-pocket expenses, while reducing liabilities associated with those benefits.
• Increased funding to the Ben Hudnall Memorial Trust and the SEIU UHW-West and Joint Employer Education Fund to ensure career development for Kaiser Permanente’s diverse workforce.
• Improved methods for assessing unit-based team performance and for spreading and adopting successful practices.
• Updates to our groundbreaking Kaiser Permanente Total Health Incentive Plan,  which rewards employees for healthy behavior and provides incentives for collective improvement.
• Joint participation on community health projects by the coalition unions in KP’s local and regional Community Benefit programs.

Next steps

Our agreement is the largest private-sector contract in the United States this year. Once it is approved by Kaiser Permanente senior leaders and ratified by union members this summer, it will take effect Oct. 1, 2015, and be in effect through Sept. 30, 2018.

The impact of the agreement “goes beyond the words on paper,” says Jerry Vincent, the Northern California region’s director of Labor Relations. “It lays the foundation for us to continue to provide quality, affordable care for many years.”

“There were some tough moments,” Denise Duncan, RN, the executive vice president of UNAC/UHCP, says of the negotiations. “But people came back together. It was a reminder that our national agreement—and our partnership—is very strong, and we keep making it better. There’s nothing like it anywhere else.”

For more information, see www.bargaining2015.org.

Equipping frontline workers with the skills and knowledge for tomorrow’s jobs—an essential element in preserving Kaiser Permanente’s competitive edge—is the focus of the Work of the Future subgroup at National Bargaining.

The negotiations this year focus on three topics, in addition to wages and benefits:

• Workforce planning
• Training and development
• Innovation and technology

“Health care is changing,” says Hal Ruddick, the executive director of the Coalition of Kaiser Permanente Unions. “We have a huge new influx of members because of the Affordable Care Act. We have to meet their needs differently—and we can do that through the solutions we create bargaining in partnership.”

Planning for change

Flexibility, foresight and planning are essential to developing a workforce that is ready for coming changes in the health care industry, said Zeth Ajemian, the director of Workforce Planning and Development for Southern California and Hawaii.

“To prepare our workforce for the future, we need to align staffing with current care delivery transformation, innovation and new technologies that meet the evolving needs of our members,” he says. “We're entering a tremendous era of change. A portion or all of an employee's work will change and their skills, training and experience will need to change to fit that job.”

Creating career pathways that allow current KP employees to move into new roles is essential, says Brian Lockhart, security lead at Sunnyside Medical Center in the Northwest and a member of ILWU Local 28.

“We want some flexibility around the experience component,” says Lockhart, who explained that employees who have trained for new roles are sometimes unable to move into them because they don’t have the necessary work experience.

Role of technology

Leveraging technology to meet the emerging needs of our patients will be another key issue for the bargaining team, says Dennis Dabney, senior vice president of Labor Relations and the Labor Management Partnership.

“We need to decide how we bring that new technology into our work environment,” he says. “We need to react more to what our patients want, rather than what we want to give them.”

Whatever innovations are designed and implemented in the future, frontline workers need to be engaged from the start, say union partners.

“Kaiser Permanente is on that bullet train toward the future and if the labor movement is not on that train, we are going to be left behind,” says Janis Thorn, interim president of United Steelworkers Local 7600.

Work of the Future is one of three subgroups tasked with crafting the next National Agreement. The other two are Total Health and Workplace Safety, and Operational and Service Excellence in Partnership.

Visit bargaining2015.org for more information, videos and slideshows, and to sign up for bargaining updates.

Kaiser Permanente and the Coalition of Kaiser Permanente Unions have reached a formal agreement that ensures the safety and compensation of KP employees involved in caring for patients with the Ebola virus.

The agreement, reached December 15, 2014, clarifies questions coalition unions had about the engagement and protection of their members who may encounter or care for a patient with Ebola. It codifies standards outlined by the Centers for Disease Control around protective protocols and equipment. It also outlines training and support provided to employees, including for employees who may be unable to work during an isolation period for a possible Ebola exposure.

Safeguarding workers and patients

“As health care workers, we’re used to putting our patients first,” said Ken Deitz, president of United Nurses Associations of California (UNAC). “Because Ebola is an infectious disease, to maintain patient safety we also had to ensure our own safety.”

The parties came to agreement quickly and with little disagreement, with conversations focused on clarifying the practices KP facilities already are doing as outlined by Centers for Disease Control guidelines.

Union and KP leaders say it reflects their desire to work together—and to continue to focus on educating, protecting and preparing employees who may come in contact with Ebola patients.

“By working together, we have ensured that employees are prepared to care for patients with Ebola while keeping themselves and their colleagues protected from infection,” said Kathy Gerwig, vice president of Employee Safety, Health and Wellness for KP.

Education, training and protection

Specific provisions of the agreement include:

• All employees with the potential to interact with, treat, or do cleaning or waste handling for suspected Ebola patients will receive paid time for education and training in such areas as Ebola signs and symptoms; care and treatment; proper donning and doffing of personal protective equipment; proper cleaning of treatment rooms or areas; and proper disposal of the patient’s body fluids and wastes.
• Employees in key treatment or intake areas will receive sufficient personal protective equipment supplies.
• Ebola treatment teams would be staffed by volunteers. If there are not enough volunteers, local KP and union leaders would identify team members.
• If a coalition union-represented employee cannot work, or receives care as a result of work-related exposure to Ebola, the employee will receive paid time off, and all medical costs will be covered through workers’ compensation.

Read the agreement.

“Interest-based bargaining is not a utopia and not always a win-win. It’s taken Kaiser and the unions a lot of hard work to get where they are,” says Linda Gonzales, director of mediation services for the Federal Mediation and Conciliation Service, Southwest Region. “[But] to resolve difficult issues in partnership is a strength.”

Because of interest-based bargaining, Kaiser Permanente and the Coalition of KP Unions have been able to go well beyond wages and benefits—the subjects of traditional bargaining—in  negotiating four program-wide contracts. These National Agreements have developed industry-leading approaches to worker sick leave, safety and training and workforce development. They have created unit-based teams to improve patient care and service, set standards to hold teams and their sponsors accountable, and pioneered programs for the mutual growth of KP and the unions.  

Interest-based bargaining pays off in other ways as well.

“To understand one another’s interests, you have to engage in inquiry and listening, and you have to resist jumping to conclusions about the other party’s intentions,” says Harvard Business School Professor Amy Edmondson. “Doing this develops leaders who better understand how the organization works.”

“People in health care look to Kaiser Permanente as the showcase for working together,” says Gonzales, who helped facilitate bargaining for the first National Agreement in 2000.

The mediation service last year recognized a handful of cases of successful interest-based bargaining. Our Labor Management Partnership was one of them.