Joint statement on National Agreement 'reopener'

Labor, health plan and physician leaders announce start of bargaining

Three years ago, more than 400 leaders from across Kaiser Permanente came together to negotiate the 2005 National Agreement. That landmark, five-year agreement recommitted our workers, managers and physicians to Kaiser Permanente's historic social mission to serve our members, patients and communities. It recognized our shared obligations to improve performance and be the best place to receive care, and the best place to work.

The National Agreement included topics rarely, if ever, negotiated in traditional bargaining, such as membership growth, service quality, workforce development, work redesign and attendance. It also provided for a range of performance-based bonus opportunities, an expanded range of retirement packages tied to organizational performance improvements, and an investment in a joint-training fund for workforce development.

An important provision of the 2005 National Agreement allowed for a reopener in 2008 to reexamine two issues in light of changing business and economic conditions—across-the-board wage adjustments and retiree health benefits. This summer, representatives of the Health Plan, Medical Groups and Union Coalition will meet to reexamine these issues, using the same interest-based partnership approach that governed the 2005 negotiations.

Management, labor and physician leaders are united in our commitment to ensure that KP provides the best quality care and service at an affordable price, and is the best place to work.”

The process will begin at an opening orientation session in San Francisco on July 7 and 8, and will conclude in a single round of bargaining the first week of August. Any changes to these two areas of the National Agreement will be reviewed and endorsed at the Union Delegate Conference on August 16. Ratification by local unions and by Kaiser Permanente's Board of Directors would occur shortly thereafter. Any new provisions will take effect October 1, 2008.

As we enter into 2008 reopener negotiations, management, labor and physician leaders are united in our commitment to ensure that KP provides the best quality care and service at an affordable price, and is the best place to work. We're confident that we'll successfully conclude our negotiations to the satisfaction and shared interests of the organization, our employees and our health plan members.

John August, Executive director, Coalition of Kaiser Permanente Unions

Marty Gilbert MD, Associate executive director, Permanente Federation Operations Strategy

Mary Ann Thode, Senior vice president, Office of Labor Management Partnership