Kaiser’s high spending on contract labor and loss in investments keeps 2022 PSP out of hands of frontline workers again

SEIU Local 49 members deliver our Coalition Open Letter to Kaiser CEO Greg Adams

Kaiser has finally released its 2022 financial results. For the first time in many years, Kaiser announced a loss of $4.5 billion, with a $1.3 billion loss in operating revenue and a $3.2 billion loss from investments. Now, because of Kaiser’s fiscal mismanagement and investment losses, Coalition Union members will not receive a Performance Sharing Program (PSP) payout.

One clear driver of Kaiser’s expenses is its excessive spending on contract labor. In 2022, 11 of the 20 hospitals in the country that spent the most on temporary staff were Kaiser facilities.  Kaiser paid over $2 billion to for-profit staffing agencies instead of investing in its own workforce.

We show up every day for each other and our patients. We do our part to meet PSP goals and do our jobs well, despite massive understaffing and the ongoing challenges with the pandemic. If Kaiser would invest more in us, it could improve the quality of patient care, stabilize our workforce, and stop spending so much on expensive contract labor.

PSP is a negotiated benefit of the National Agreement for Coalition Unions and is designed to recognize frontline workers’ contributions to Kaiser’s success as an organization. In recent years, Kaiser has set financial gate triggers around their profitability that are unrealistic and out of the line of sight of any frontline worker. While these metrics are contractually allowed, they sidestep the spirit of the PSP and partnership principals themselves.

Note: The Kaiser Permanente NW Dental Program undeniably met the financial gateway and will receive the regular PSP payout. Watch for additional communications on this if you are a Dental employee.  

Coalition Leaders Push for Broad Recognition of Workers’ Contributions, Kaiser Agrees to $500 bonus

Coalition union leaders called upon Kaiser to recognize the important contributions of frontline workers. Kaiser has agreed to our request to make a special one-time payment of $500 to any Coalition union represented worker in the Northwest.

While this is far from what many expected, the real conversation about getting the respect and recognition we deserve will be had at the National Bargaining table this year.

First Bargaining Dates Set!

National bargaining will begin April 18-20, 2023. It’s clear we have a fight on our hands to get Kaiser focused on solving the staffing crisis and ensuring quality care for our patients. Reforming the PSP and how it is paid out will also be a big piece of our bargaining work. Stay tuned on how you can get involved!