Monday, May 27, 2013

Dave Regan's Latest Backroom Deal Hits 14,000 SEIU-UHW Members at Dignity Health

Details are emerging about the latest backroom deal between SEIU-UHW's Dave Regan and Dignity Health, which involves large numbers of layoffs, paltry pay increases, and plans for more cuts in the future.

Here are the details:

In June of 2012, Dave Regan and Hal Ruddick negotiated a labor contract for SEIU-UHW’s 14,000 members at Dignity that included a wage freeze and cuts to workers’ health and retirement benefits.

Since last June, Dignity has pocketed $625 million in profits, according to the company’s most recent quarterly report issued just days ago. That's on top of Dignity's $1.1 billion in profits from the preceding two years (July 2010 through June 2012).

Last month, Regan conducted unscheduled negotiations with Dignity’s executives. So... did Regan demand big pay increases to make up for workers' pay freeze?


'Wall Street' Dave Regan negotiated a whopping 2% pay increase for 2014. Here's the one-page agreement signed by Regan.
Plus, Regan apparently signed off on more layoffs of SEIU-UHW's members. This report from California’s Economic Development Department indicates that Dignity will lay off 468 workers in about three weeks (June 24).

Tasty hears even more cuts and layoffs are on the horizon. In Dignity's quarterly report (see excerpt below), the company describes a variety of cost-cutting efforts that are already underway, including...  
…workforce management initiatives, such as productivity, modification of core staffing levels, management of salary inflation, and redesign of benefit structures to align salary and benefit trends with revenue trends.(Source: p. 29, Dignity Health’s Quarterly Report for the period ended March 31, 2013)
Plus, Dignity has hired McKinsey and Company to implement a strategy to cut a half-billion dollars from the company’s expenses by the end of 2016. Ominously, Dignity’s quarterly report says this cost-cutting crusade will include “further focus on core staffing and productivity.”

It's quite a story that's unfortunately not new to California's healthcare workers. As Dignity pockets $1.7 billion in profits, Regan inked a backroom deal that allows the Boss to wipe his feet on workers' backs. 

Here's the excerpt from Dignity's quarterly report, dated May 15, 2013, about the company's "Business Strategy:"