Kaiser Permanente
Student’s Name
Institutional Affiliation
Kaiser Permanente
Description
Kaiser Permanente is a non-profit organization located in Oakland, California. The non-profit organizational model is to provide integrated health care provision. The organization’s mission is to augment the health of its 12.2 million members as well as the communities it serves (Kaiser Permanente, 2020). To achieve the objective, Kaiser Permanente seeks strategic partnerships with community organizations, administrative entities, and public agencies (Kaiser Permanente, 2020). The agenda is to address issues that affect the communities’ health, such as the provision of community events and sponsorships. Founded in 1945, Kaiser Permanente has three organizational modules. They are (1) Kaiser Foundation Health Plan, Inc., (2) Kaiser foundation hospitals and subsidiaries, and (3) the Permanente Medical Groups (Kaiser Permanente, 2020). From an operations point of view, the organization has more than 30 hospitals, 23, 271 medical physicians, 63 000 nurses, 218, 297 employees, and 706 medical offices (Kaiser Permanente, 2020). With such an expansive network, Kaiser Permanente operates nationally in regions such as California, Colorado, Georgia, Hawaii, Mid-Atlantic States, and Washington, among others. In 2018, the organization had an operating income of $ 79.7 billion (Kaiser Permanente, 2020) and a net income of $ 5 billion (Conway, 2019). Despite the success the organization has experienced over the years, recent labor woes have overwhelmed the Kaiser Permanente organization.
The Kaiser Permanente is facing nationwide labor strikes that threaten to cripple the organization’s mandate on providing health care to communities. According to the LA Times, the Kaiser Permanente is grappling with nationwide strikes involving medical practitioners and employees (Almendrala, 2019). It is reported that more than 80 000 employees have been on strike against the organization (Conway, 2019). An interview conducted with one of the nurses on strike cited, “there are always problems on the job, but, in recent years, they have gotten worse. A lot of nurses and therapists working for the organization are fired without any warning. I had a co-worker who was given a disciplinary review for taking an extra five-minute break” (Conway, 2019). The strikes come amid reports of the Chief Executive Officer, Bernard Tyson’s compensation at $ 16 million- becoming one of the highest-paid non-profit employees and Kaiser Permanente’s recent investment in building a $ 900 million flagship headquarter in Oakland (Almendrala, 2019). On top of this, the organization is receiving a regulatory review from California lawmakers regarding financial transparency law amid growing concerns on operational disputes. Therefore, there is a need to address the growing labor concerns for Kaiser Permanente, given the current labor issues surrounding its worker outbidding the mission and vision plan of the organization.
Exploratory
The main bone of contention between the staff and Kaiser Permanente is the lack of proper working conditions. Kacik, (2019) points out issues regarding non-participation of Kaiser Permanente in meeting the bargaining needs of its workers. The history of the strike began in 2016 when the first 30 000 workers downed their tools, stating an attack on workers. Conway (2019) concurs, stating that more than 37 000 workers in 2019 voted in favor of a nationwide strike. The main reason for the continued strikes is the lack of proper care for the employees. Conway (2019) lists issues for address, including staff pension and retirement benefits, staffing levels, and opposition to the practice of hiring unlicensed and unaccredited staff. The company re-strategize on its Kaiser Model, requiring it to downsize its employee size and impose new working conditions that can only be described as onerous (Conway, 2019). The resolve by Kaiser Permanente is to provide various innovations within the health care industry. They include the consolidation of health care records and the use of technology to integrate better and streamline care delivery (Conway, 2019). The Kaiser new model may explain why the organization is set on revamping hospital treatment to save up on billions in expenses. The organization has also sorted the use of virtual medicine, which requires doctors to conduct consultations via mobile phone or video conferencing. In this, the organization justifies the need to lay off a large percentage of its workers.
The solution that has been reached is the contractual improvement of the terms and conditions of employment. In a sit-down with union representatives, Kaiser Permanente proposed a 3% pay raise within 2019 and a 2% pay raise in the consecutive remaining two years (Navarro, 2019). The Union representative, Ron Ruggiero, states, “This agreement highlights the dedication of Kaiser Permanente in promoting the welfare of its workers” (Navarro, 2019). It is expected that the new contract will provide a two-tier benefit system for the employees. However, the workers have to vote on the matter to ratify the agreement.
Profile or Explaining
Kaiser Permanente aims to reach a contractual agreement with Union representatives regarding a proposed tentative four-year contract agreement. The contractual agreement will require Kaiser Permanente to provide members under the Coalition of Kaiser Permanente Union with an annual pay increase of 3% for those in California (Kumamoto & Anderson, 2019). Besides, Kaiser Permanente proposed the implementation of a program to reduce the countrywide shortage of health workers, which is an agreeable process for organizations (Medina et al., 2014). Based on the discussions, the Unions also presented worker disgruntlement stating that there is a need to outsource professionals based on a criteria list. Rebbecca Kolins, a labor relations specialist in an interview, stated: “the coalition made several victories within the contracts. However, the biggest win was outsourcing” (Kumamoto & Anderson, 2019).
Additionally, it is reported that the workers under Kaiser Permanente will gain more entry into new positions through promotions. The guarantee is based on Kaiser Permanente’s dedication to providing a rough investment of $ 130 million towards the four-year contractual agreement (Kumamoto & Anderson, 2019). The investment is set to improve the educational skills of the employees, which aligns with Kaiser Permanente’s commitment towards improving health care services to the communities it serves. The contract negotiation is lauded as one of the most significant tests for small unions against the big health care industry that often is against the workers. Thus, Kaiser Permanente seeks to reduce the labor strike fiasco through improved engagement with the unions. The belief, according to the Kaiser Permanente members, is that these negotiations will highlight the dedication of the organization in protecting the working rights of the employees across the nation.
Evaluation
How an organization handles its labor or employee disputes can impact on the employment relationship. Presumably, it can affect the characteristics of workflow and employee expectations (McDermott et al., 2013). Concerning the non-profit organization, McDermott et al. (2013) elucidate that non-profit employees have a mutual agreement over the values and expectations they have with the organizations. In the case of Kaiser Permanente, it appears to have similar expectations. However, with the given strikes over the past year, it is evident that one partner has deviated from these expectations. Kaiser Permanente is documented to have increased operating income for the past five years (Kaiser Permanente, 2020) but has little regard over the working rights of the employees. Based on interviews conducted among the Union employees, “Kaiser Permanente has a track record of working constructively with labor to solve problems together to improve the care and service offered to our members and patients” (Kumamoto & Anderson, 2019). The union representative indicated that workers in states, including Oregon, Southern Washington, and California, will receive increased salaries. The extolling of the contractual agreement between the union representatives and Kaiser Permanente shows a big step in how the organization is improving its relationship with the workers. Overall, the move will improve health care delivery to communities, which was also a fundamental reason for increased strikes among Kaiser Permanente employees.
Conclusion
Kaiser Permanente has a long history of providing the best care and opportunities for health care for targeted communities. Before the strikes, the world thought that the organization had good intentions for its workers alongside its targeted communities. However, the current publicity the organization is receiving regarding its lack of proper care for its workers speaks volumes. The profitability of the organization at $ 5 billion with concurrent retirement pay-off of its CEO amounting to $ 26 million paints a different picture. Additionally, the organization is currently receiving legal oversight over its financial statements on expenditure also highlights the operational woes surrounding Kaiser Permanente. For volunteers, there is a lot that can be done regarding speaking out for the workers in the organization. Volunteers have a lot of power yielding community support in ensuring that the front-line workers gain from their employment, which in turn secures quality health care for the communities. Therefore, the recommendation for volunteers is to stand together with the workers during this time by ensuring that the Kaiser Permanente organization stands by its decision to increase salaries. For the contributors, it is optional and ideal to seek legal counsel regarding the organization, given that it generates more revenue as a non-profit in the country compared to others. The recommendation, therefore, would be to ensure that the contribution is well documented alongside the mission and vision of the business to promote transparency.
References
Medina, F. J., Vilches, V., Otero, M., & Munduate, L. (2014). How negotiators are transformed into mediators. Labor conflict mediation in Andalusia. Revista de Psicología del Trabajo y de las Organizaciones, 30(3), 133-140.
Almendrala, A. (2019, November 8). As Kaiser Permanente faces another labor battle, critics question its mission. Los Angeles Times. https://www.latimes.com/business/story/2019-11-08/bruising-labor-battles-put-kaiser-permanentes-reputation-on-the-line
Conway, D. (2019). US Kaiser Permanente workers vote overwhelmingly in favor of strike. https://www.wsws.org/en/articles/2019/08/16/kais-a16.html
Kacik, A. (2019, July 12). 85,000 Kaiser Permanente workers threaten to strike. Modern Healthcare. https://www.modernhealthcare.com/providers/85000-kaiser-permanente-workers-threaten-strike
Kaiser Permanente. (2020). Fast facts. https://about.kaiserpermanente.org/who-we-are/fast-facts
Kumamoto, A., & Anderson, C. (2019). Kaiser Permanente reaches a tentative deal with unions, averting October strike. The Sacramento Bee. https://www.sacbee.com/news/local/health-and-medicine/article235465397.html
McDermott, A. M., Heffernan, M., & Beynon, M. J. (2013). When the nature of employment matters in the employment relationship: A cluster analysis of psychological contracts and organizational commitment in the non-profit sector. The International Journal of Human Resource Management, 24(7), 1490–1518.
Navarro, N. V. (2019). Kaiser Permanente, Workers Reach Contract Deal, Will Likely Avoid Strike. Colorado Public Radio. https://www.cpr.org/2019/09/25/kaiser-permanente-workers-reach-contract-deal-will-likely-avoid-strike/