SEIU-UHW Contract Victory What We Won

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1 SEIU-UHW Contract Victory What We Won Wages Across-the-board increase: 2% for all employees in May Below scale employees: Employees below the proper place on wage scales for their seniority and classification will be brought fully to scale in four phases: (1) Following ratification, to scale or 3% whichever is less; (2) December 2012, to scale or 3% whichever is less; (3) May 2013 to scale or 3% whichever is less; (4) November 2013 to scale (without limitation). By November 2013 no employees will be below the proper place on the pay scales! Step increases: regular step increases will continue. Management: originally proposed complete wage freeze including stopping anniversary raises, then they proposed to exclude California, St Mary Long Beach, Community Hospital of San Bernardino, and St. Bernardine s from all raises. We won raises for everyone! Contract length [article 36] Four year contract protects our contract language including important job security provisions like no subcontracting until April 30, Management proposed many takeaways on job security and work rights now these are guaranteed for four years. Contract reopens in 2014 for four key economic issues. In January 2014, we will go back to the table to bargain over: Wages for third and fourth year of contract; Health insurance for 2015 and 2016 retirement benefits for 2015 and 2016; and Education fund dollars. The reopener will have the same bargaining process as a full contract rank-and-file members from every facility will be elected to serve on the bargaining team, and all members will vote on ratification of any settlement. If we can t reach a fair settlement, we will have the right to strike in May The other contract articles are not part of the reopener negotiations, and are protected till Education Fund [article 4] Education fund benefits continue for 2012 and using funds already set aside by management under our last contract. We will transition fully to the Joint Education Fund - expanding the programs and services available to members. We will work together to secure federal workforce training dollars made available under healthcare reform. We beat back management s proposal to freeze all education dollars for 4 years. Education funds will be part of the re-opener in No Subcontracting [article 5] No change: We protected our guarantee of no subcontracting our jobs. And we defeated management s proposed side letter which would have allowed them to reopen parts of the contract for facilities with financial problems.

2 Job and Employment Security [article 14] Protected benefits and improved the process. Management proposed to eliminate supplemental unemployment benefits; we protected them. To create more opportunities for employees affected by layoff, all vacant bargaining unit classifications that employees may be qualified to perform or could be qualified to perform with reasonable training will be frozen at all hospitals within the cluster. Employees will also be given the opportunity to fill vacancies at other Dignity health facilities (including non-union outpatient facilities), and still retain their rights to be called back from layoff to their original position. Employees affected by RIF who choose to convert to per diem or supplemental status will still be able to obtain severance pay. The prior contract gave laid off employees reimbursement for COBRA expenses for two months after providing proof of payment. In the new contract, employees will receive the lump sum equivalent of these premiums up front, instead of having to pay and then get reimbursed. Call-offs and Daily Cancellations [article 15] Added language on the union s access to call off and daily cancellation records where they exist. PTO, ESL [article 19] We beat management s proposals to add caps on PTO accrual in local provisions. We standardized the rules on PTO donation and hardship. Retirement [article 20] We beat management s proposal to force employees to switch pensions. About 1200 employees chose in 2005 to remain in their historical pension plans. Management wanted to force them to change plans in 2013 (which they did last year to all managers and non-union employees). Protected formulas for disability and annuity benefit under the VPP pension. Management proposed to change formulas for disability retirement benefits, and for employees who convert their lump sums to guaranteed monthly benefit on retirement. These will remain the same. VPP interest crediting rate set for 2013 at 5%, instead of lower Treasury rate. We retained 6% interest crediting rate for 2012, and established 5% interest crediting rate for As a result of Federal regulations which will prohibit a fixed 6% interest crediting rate starting in 2013, the rate under our pension plan would have dropped to the November 2012 Treasury bond rate. The 5% rate for 2013 is much better than Treasury bond rates (about 3%). Cleaned up the language. We eliminated a number of one-time provisions that addressed the establishment of the VPP in To streamline the contract, we also removed some of the specific examples this does not change any of the benefits or rules of the pension plan. Health Insurance [article 21] Protected currently covered Legally Domiciled Adults (LDA) and Adult Tax Dependents (ATD) Management proposed to eliminate coverage for 263 LDA s and ATD s to save approximately $2.6 million a year. We won continued coverage for all currently covered LDA s and ATD s. In the future, no new LDA or ATD can be enrolled. The contract continues to cover

3 Registered Domestic Partners. We added a provision regarding coverage for certain disabled adult children, who became disabled prior to age 19, as provided by law. Dual coverage. Added language similar to that agreed to by other unions (including the California Nurses Association) preventing spouses who are both Dignity Health employees from taking duplicate coverage. ED co-pay. To encourage usage of Dignity Health facilities, we agreed to an increase in ED copay to $100 at non-dignity hospitals. Exceptions are where the accident, illness, or injury occurs more than 25 miles away from a Dignity facility, or where the employee is part of an HMO plan that directs them to another hospital. The co-pay is waived upon admission, per current practice. Side letter on dependent buy out. There is a voluntary, one-time, lump sum incentive for employees who currently have a spouse or dependent on Dignity Health insurance, to opt out. Only applies if the spouse or dependent has alternate coverage. If the spouse or dependent loses eligibility for alternative coverage, they can return without penalty. If they chose to return while alternative coverage is still available, there would be a monthly charge. Other important Health Insurance Issues We held strong beat back management proposed take-aways: NO to management s proposed 30% premium share for part-time employees NO to management s proposed higher co-pays prescriptions contract guarantees no increase NO to management s proposal to remove coverage for dependent children up to age 24 (not needed now because of Obamacare law requiring coverage to age 26, but could be important if Supreme Court or a future President reverses Obamacare) NO to management s proposal to reduce current monthly opt out payments for employees who don t take the health insurance. NO to management s proposal for greater rights to change health plans. We protected contract language in Article 21 Section A limiting health plan changes without union agreement. This is one of the most important victories to protect our health plans. Bereavement Leave [article 22] Added: 1. mother or father of domestic partner to the paid bereavement leave 2. management will not unreasonably deny time off for services for relatives not covered by the bereavement leave policy (using PTO or unpaid time). Some supervisors had been refusing to grant time off to attend services for relatives unless they were specified in the paid bereavement benefit. Tuition Reimbursement & Continued Education Time [article 27] Requests for payment of CET must be submitted within 30 days following completion of course, or receipt of course completion documentation. This applies to the CET, not to Tuition Reimbursement. We defeated management s proposals to reduce CET benefits.

4 Grievance and Arbitration [article 29] We revised the grievance arbitration process for faster resolution of grievances as part of our program of representational excellence. To speed the process: One grievance meeting at the facility level. Mediation after the grievance is appealed to arbitration: an outside independent mediator will work with the parties to try to settle the issue. Expedited arbitration using pre-scheduled dates to avoid the long delay of waiting for arbitration hearings. Clarified the right to have two representational leaders (stewards) in grievance meetings. Some hospitals have tried to limit grievance meetings to 1 steward. Article 31 Protected steward council time, contract specialist program, and paid time for union bargaining committee members (management originally wanted to cut these). Clarified role of contract specialist to focus on training, joint committees, health promotion, instead of grievance handling. Side letters Deleted several outdated side letters. This has no effect on any benefits or employee rights. Appendices Appendix A Recognition Procedure: Management tried to eliminate organizing rights altogether. We won the right to organize employees at California hospitals without management interference. Some timelines have been speeded up so that employees can join the union more quickly. The accord will apply only in California, and will not cover clinics, joint ventures, and similar non-acute care settings. Appendix D: Local Provisions: Management proposed many take-aways in local provisions cutting standby pay in Northstate hospitals, caps on PTO where they don t exist, switching to PTO at St. Joseph s, changing some standby/callback practices, and others. We defeated every one of these proposed take-aways in local provisions. We won some local changes: Sacramento facilities, including hospitals and Med Foundation, clarified training is voluntary for non-lead employees. Previously management had the right to assign employees to train without their consent. California hospital employees who convert to per diem status will not have their pay reduced. Sequoia and Mark Twain local addendums have been expanded to incorporate and guarantee current practices which were not spelled out in the contract. Appendix F: Employee Health and Care Management The union and management have agreed to expand the role of the current Health and Wellness committee. We will be working together to promote employee health, and to reduce factors that contribute to chronic disease. This includes measures to track progress in promoting health and wellness and developing jointly a comprehensive wellness and disease management program. Any

5 health assessments will be voluntary. We rejected management s proposal for mandatory biometric screening. All health utilization data and information will be aggregated (pooled in a group). Confidentiality will be strictly maintained. To promote job security by bringing more business to Dignity facilities, and to save benefit costs, we agree we will look at ways to create incentives to encourage use of Dignity hospitals. The union and management will work together to educate employees, promote healthy activities at the work place, and consider potential incentives for progress in meeting these goals. In other victories, we beat management-proposed takeaways throughout the contract, including protecting: Article 3 (Standards Preserved) against management s proposal to delete it. Article 11 Categories of Employees against management s proposal to allow them to work per diems and part- time employees indefinitely without having to re- classify to benefitted positions. Article 18 (Hours of Work) We beat back a proposal from management to give them the right to eliminate current 10 and 12 hour shift arrangements without a vote by employees. Many others!

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