"Kaiser Permanente Workers Rebel Against Two-Tier Wage System (1)," 20 Oct. 2021

More than 30,000 Kaiser Permanente workers on the brink of a strike are motivated by a grievance that’s factored into much of the recent labor unrest nationwide—a proposed two-tier wage system that would pay starting workers less than their more experienced colleagues.

... Kaiser’s proposal—which the company says will help contain costs for consumers—was a principal factor that pushed many of its West Coast workers to authorize a strike ... , with 96% support, according to the Alliance of Health Care Unions, an umbrella group for unions representing Kaiser workers.

... “It comes to that breaking point where you don’t have anything else,” said Nikki Avey, a registered nurse for Kaiser in San Diego and an officer for the member union. “The proposals that Kaiser was bringing forth were just really disappointing. And I think the members were fired up; they were just tired of it.”

In a statement to Bloomberg Law, Arlene Peasnall, Kaiser’s senior vice president of human resources, said employees already earn 26% more than average market wages, and that the two-tiered proposal would address future costs and “ensure we continue to be affordable for our members.” Management has continued to meet with the union since the contract expired last month, she said, an has put forth an initial offer with wage increases and no benefit cuts. “The challenge we face is that this is unsustainable,” Peasnall said. “If we continue to increase costs so high above the marketplace, we will become unaffordable and lose members. And the fact is: Health care is increasingly unaffordable, and escalating wages are half of the cost of health care.”