Update on Kaiser Partnership Bargaining

What happened at this week’s "kickoff” of labor negotiations between Kaiser Permanente and the "partnership unions”?

Well… there wasn't any actual "bargaining."

After a three-day weekend of prancing around Disneyland with Kaiser execs, the partnership unions spent Monday and Tuesday in a "bargaining kickoff.” On Monday, Kaiser’s execs and union officials made speeches interspersed with "Instant Recesses” and "Thrive Activities" to keep participants awake.

On Tuesday, the unions were trained on how to do “interest-based bargaining.”

As far as speeches, sources say Chuck Columbus (Senior VP and Chief Human Resources Officer for Kaiser) was the first speaker and offered a gloom-and-doom picture about the vague, but very dangerous, "challenges" lurking in Kaiser’s future.

Don’t trust Chuck.

He formerly served as the VP of Human Resources at Ford Motor Co., where he eliminated the defined-benefit pension plan for new hires and forced them into a 401(k) plan. He also implemented a two-tiered wage system that pays new Ford employees only half as much as regular employees. This pushed Ford’s profits through the roof.

In 2009, Kaiser's then-CEO George Halvorson and COO Bernard Tyson recruited Columbus to do the same thing at Kaiser… with the assistance of SEIU’s newly implanted trustee from the East Coast, Dave Regan.

A year ago, Regan and Columbus gave a joint presentation to the California Public Employees Retirement System where Regan talked about cutting workers’ benefits if they don't meet the requirements of Kaiser's wellness program. You can see a video of Regan's comments on this earlier post.

 

Dave Regan with his buddy, Chuck Columbus, in Jan. 2014

At Monday's meeting, Columbus (who earns $1.5 million a year at Kaiser) told workers about the vague challenges facing Kaiser in the future, but forgot to mention one of the biggest challenges -- where to stash Kaiser's billions of profits. Last year alone, Kaiser pocketed profits of $3.1 billion.

Kaiser's Ray Baxter spoke about Kaiser's corporate wellness program, which has been "re-branded" as "Total Health.” 

Another speech had this intriguing title:  "One KP.”

A bevy of bloviating fatcats took the stage including Dennis Dabney (Senior VP of Labor Relations and Labor Management Partnership for Kaiser), Jim Pruitt (VP of Labor Management Partnership and Labor Relations for The Permanente Federation), Artie Southam (Executive VP of Kaiser’s Health Plan Operations), Hal Ruddick (Executive Director of the Coalition of Kaiser Permanente Unions), and Dave Regan.

Lastly, here's a development that speaks volumes about the partnership bargaining. According to Kaiser workers in Northern California, Kaiser is currently laying off SEIU-UHW members with the assistance of SEIU-UHW officials. 

At Kaiser Vallejo Medical Center in Northern California, SEIU-UHW members with as many as 30 years of seniority are receiving layoff notices. They say workers are getting layoff notices without regard to seniority lists. And workers say SEIU-UHW is totally AWOL... even after workers make phone calls and send e-mails to Union Reps and SEIU-UHW’s headquarters in Oakland.

Again... these layoffs are happening as bargaining is underway. And as Kaiser's profits and membership are booming.

Where’s SEIU-UHW?

In the boss's pocket.

SEIU's Dave Regan Has a New Buddy at Kaiser Permanente

SEIU’s Dave Regan has a new backroom buddy over at Kaiser Permanente.

Last week, Kaiser’s more than 100,000 workers received postcards at their homes announcing that Bernard Tyson has seized the reins of power as Kaiser’s new CEO.

The postcard (see below) begins this way: “A message for you from Bernard J. Tyson, our new Chief Executive Officer.” Of course, Tyson makes an obligatory show of respect for Kaiser’s workers.

I want you to know how honored I am to lead – with you – our respected organization into the future. I appreciate the great work you do every day…

Blah, blah, blah.

                                                                                                                 

Next, Tyson lays down a crystal clear marker about Kaiser’s plan to cut staffing levels and slash workers’ pay and benefits. Here’s what he says:

Now, I would like to share what I believe is Kaiser Permanente’s next call to action -- advancing our mission on affordability… Our next frontier is to tackle affordability with the same passion as we have demonstrated in advancing our mission on quality.

So… Tyson -- with the undying assistance of Dave Regan and the “partnership unions” -- wants to be “Mr. Affordability.”

Hmmm… perhaps Tyson should take a look at his own multi-millionaire paycheck. Kaiser’s current CEO, George Halvorson, pulls down $9 million a year.

Then there are the nine separate pension plans that Tyson currently receives (even as he and Regan are trying to eliminate workers' only pension plan).

And the chauffeur-driven car that now carries Tyson to work every day.

And the $9.5 billion in profits that Kaiser has pocketed since 2009.

And before Tyson and Regan try to cut staffing levels, they might want to take a look at the $4 million fine that Kaiser just got for illegally understaffing its mental health services and depriving patients of needed care.

Tasty can’t wait to see how Mr. Affordability explains this paycheck... which gave Tyson $805,422 for just 14 days of work. They paycheck is from 2008, when Tyson served as Kaiser’s Chief Operating Officer.

Hey Mr. Affordability, take a look in the f*cking mirror!

   Kaiser Permanente CEO Bernard Tyson's postcard to employees on affordability July 2013

Kaiser Coalition Hires Headhunter to Find Replacement for John August

In a sign that candidates are not exactly beating down the doors, the Coalition of Kaiser Permanente Unions has hired a “headhunter” to find someone to fill John August’s vacant desk as the Coalition's Executive Director. 

Here’s an email sent by Ken Margolies, who describes himself as an "Executive Recruiter" at a firm called Margolies and Potterton:

From: Ken Margolies

Date: June 26, 2013, 8:08:44 AM EDT

To: Ken Margolies

Subject: Please help me find a new Exec Dir for the Coalition of Kaiser Unions, based in Oakland CA,

Do you have any ideas of candidates for this?  They are especially looking for someone with experience uniting coalition partners and coordinated bargaining.

Thanks

Ken

And here’s an earlier post by the headhunter.

Ken Margolies Executive Recruiter at Margolies and Potterton

Coalition of Kaiser Permanente Unions, Executive Director The Coalition is 10 International Unions, 30 locals representing 100,000. Coalition & KP believe caregiver involvement in decision-making creates superior outcomes. Coalition funded through joint labor/management trust. Ideal candidate: experienced principal officer or director with success leading high level negotiations and coalitions, managing staff and budgets, strategic planning, building good relationships with management, patience, presence and confidence. Oakland, CA. regular travel. comp includes base salary generous benefits confidential inquiries: Ken Margolies

So why aren’t trade unionists flocking to this job posting?

Well, it’s common knowledge that SEIU-UHW’s Dave Regan and John August have already inked a deal with Kaiser to slash the health benefits and eliminate the defined-benefit pension plans for all 100,000 of the Coalition’s members during the next round of bargaining in 2015. 

As a result, these massive givebacks will become the crowning accomplishment of the next Executive Director! Not exactly the sort of career-building material you’d want on your resume… unless you plan to work for Kaiser’s H.R. Department.

Furthermore, August’s replacement will have to handle many other messes left behind by August, including multiple legal disputes connected to August's sexual harassment and bullying against multiple members of the Coalition's staff. 

Lastly, a replacement will have to swallow August’s and Regan’s brand of company unionism, which they try to peddle to workers as "21st Century unionism.” If candidates possess even a shred of integrity, they'll pass up the chance to run a “union” that’s simply an appendage of Kaiser's corporate headquarters.

So… who can possibly fill this job? Here are Tasty's ideas.

George Halvorson

(1) George Halvorson. Halvorson will soon be retiring as the CEO of Kaiser Permanente. He won't have much to do except count all the money he'll be collecting from his nine pension plans. Of course, having Kaiser's ex-CEO as the head of Kaiser workers' union might be a bit unseemly to some. But that's basically been the reality ever since Dave Regan parachuted into California.

(2) Jeffrey Skilling. Let's face it. The Coalition needs a candidate who has zero integrity and would have no hesitation cutting backroom deals to screw the Coalition's 100,000 members. Corporate America is filled with assholes like this. The only downside with Jeffrey Skilling, the former CEO of the Enron Corporation, is he's still serving jail time at the Federal Correctional Institution in Littleton, CO for insider trading, securities fraud and conspiracy. Oh well. 

(3) Goofy.  It was a stroke of luck that the Partnership Unions’ most recent shindig was at Disneyland.

It gave Coalition officials a chance to interview promising candidates like Goofy, who reportedly attended the interview wearing a cape and crown.

He's perfect to replace John August! 

 

Federal Judge Slams Kaiser Permanente and SEIU-UHW; Orders NUHW's Lawsuit against "Sweetheart Deal" to Proceed

In a second legal victory for NUHW in as many weeks, a federal judge has ordered a blockbuster lawsuit filed by NUHW against Kaiser Permanente to proceed in federal court.

The lawsuit alleges that Kaiser officials gave hundreds of thousands of dollars in illegal campaign contributions to SEIU-UHW as a way to fund SEIU-UHW’s two NLRB election campaigns against NUHW for 45,000 Kaiser workers.

Under federal law (Section 302 of the Labor-Management Relations Act), employers are strictly prohibited from giving money to unions or union officials. The law, passed by the U.S. Congress in 1947, is designed to prevent corporations from corrupting their unions by 'buying' union officials through financial contributions and thereby securing their loyalty and subservience.

In this case, Kaiser aided its “labor-management partner” at SEIU-UHW by allowing hundreds of SEIU-UHW’s shop stewards and supporters to take “leaves of absence” or “lost time” from their regular jobs in order to campaign for SEIU-UHW during the giant NLRB elections. And while these Purple supporters were campaigning for SEIU-UHW, Kaiser paid for all of their benefits -- including their health insurance, pension contributions, vacation pay, sick leave, etc.

In his eight-page decision (see below), the federal judge rips into both Kaiser and SEIU-UHW.

No court has ever held that employers can pay employees under a collective bargaining agreement to campaign under the control of the incumbent union against a rival union. One evil Congress wished to resist was a sweetheart cozy arrangement between the incumbent union boss and the company, for such arrangements persist at the expense of the workers. Yes, the employer likes doing business with such unions. But indirect contributions as alleged here would violate the purpose of Section 302 “to prevent bribery, extortion, shakedowns, and other corrupt practices.”

Corruption much, SEIU and Kaiser?

The judge notes that prior to SEIU’s trusteeship of SEIU-UHW in 2009, Kaiser approved “no more than a handful” of lost-time requests for workers to do traditional contract enforcement and representation work.

But things quickly changed after SEIU’s DC officials parachuted into California… and Dave Regan began whispering promises into Kaiser’s ear. Here’s how an article in the BNA’s “Daily Labor Report” describes it (see full article below):

Once the campaign against NUHW was under way, the union alleged, Kaiser approved hundreds of such requests, allowing SEIU-UHW to use the lost-time employees to campaign against the SEIU affiliate's rival union.

According to the judge, this is strictly illegal.

Kaiser is here allegedly violating the agreement by intentionally placing workers on lost-time status to campaign against a rival union and dramatically increasing the number of employees on compensated leave for such campaigning...

Under the new pleading, therefore, Kaiser exceeded the scope of the original agreement and simply gave money to SEIU-UHW. During the representation campaign, to repeat, Kaiser released “hundreds of employees” on lost-time leave to campaign against NUHW (Dkt. No. 60 at 11). The lost-timers did campaign against plaintiff NUHW and Kaiser provided benefits and other things of value to the lost-timers while they were released on lost-time leave (ibid.). This was tantamount to making cash campaign contributions to SEIU-UHW to assist SEIU-UHW in fending off the upstart rival NUHW.

Way to go, NUHW!

Here’s a little-known fact about the federal law (Section 302) that's at issue here:  violations can be prosecuted as criminal offenses! Of course, it’s unclear if Kaiser’s executives -- such as CEO George Halvorson and COO Bernard Tyson -- could be criminally prosecuted in this case… But Tasty can dream, right?

The next step in the lawsuit is “discovery,” where NUHW will be allowed to subpoena tons of information from Kaiser and will also get the right to question Kaiser’s fat-cat executives while they're under oath!

Here's the judge's eight-page ruling. The BNA's two-page article is below.

   Federal Judge's Ruling Allowing NUHW's Lawsuit against Kaiser Permanente and SEIU to Proceed regarding Kais...

Here's the article entitled: "Court Lets NUHW Pursue Section 302 Claim Kaiser 'Lost-Time' Approvals Aided SEIU-UHW" dated June 17, 2013:

   BNA's Daily Labor Report: "Court Let's NUHW Pursue Section 302 Claim Kaiser 'Lost-Time' Approvals Aide...