Page One Archive

November 2009 —

An Open Letter to UC Medical Center Nurses

Nov. 19, 2009

Dear colleagues:

Since August, UC and CNA have engaged in limited reopener negotiations regarding staffing, benefits, contract duration and wages.  One of UC’s primary goals, in these negotiations and in general, has been to ensure that Medical Center nurses continue to receive an attractive, competitive compensation package (including both wages and benefits) that reflects the importance of RNs in providing the outstanding patient care for which UC Medical Centers are known.

At the same time, UC and the Medical Centers face tremendous financial challenges and uncertainties amidst a prolonged statewide recession, and we must factor those circumstances into any labor agreement.  We believe the offer now on the table balances those competing needs: It ensures that our nurses continue to be paid market-rate wages and benefits; at the same time, it recognizes the extraordinary times we are in and the financial sacrifices that so many UC employees are making.

Most recently, a neutral fact-finder heard ten days’ worth of testimony from UC and CNA. Fact-finder John Kagel then issued a report on his non-binding recommendations. The report became available for public discussion Nov. 19. (To see the full fact-finding report, please click here.)  The University agrees with most of the fact-finder’s recommendations, which are summarized here, along with a discussion about the one area where we disagree. We hope you’ll take the time to read the report and our response.

The Medical Centers value their nurses highly, and we think you’ll agree that our offer represents a contract that would be fair and equitable to everyone.

Staffing

The report noted that each of the Medical Centers has a variety of methods to assure that break and meal relief is available to its nurses. It also noted that the agreed upon process in Article 8 of the contract has successfully resolved staffing issues at several of the Medical Centers. We agree that staffing issues should continue to be addressed locally at each of the Medical Centers, with input from nursing staff and their representatives.

Benefits

The University has proposed restarting employer and employee contributions to UC’s retirement plan to offset anticipated shortfalls.  For employees, including RNs, contributions would begin in April 2010 by re-directing into UCRP the mandatory payments (approximately two percent of pay) that are currently going into individual defined contribution accounts.  Under UC’s proposal, employee take-home pay would not be affected by the initial restart of pension contributions. The report recommends that UC’s proposal be adopted. The report also recommends that CNA accept the University’s proposal for health benefits and for retiree medical benefit contribution levels.

Wages

CNA is requesting an immediate across-the-board increase of 8%. UC has offered a step increase in December 2010 (along with its proposal to extend the term of the contract). The fact-finder’s report agrees with UC that no additional raises are needed in 2009 because nurse wages remain competitive in their local markets.  (This is underscored by the fact that the number of applicants now exceeds the number of vacant RN positions at the UC Medical Centers by a 20 to 1 margin).

However, the report does recommend that UC provide a step increase in July 2010 and 2% wage increases in March and September 2010. UC does not agree with the report in this regard, for the following reasons.

While UC is strongly committed to paying its nurses competitive wages, following the fact-finder’s recommendations would result in UC paying above market rates, and create issues of parity with other UC employees.  UC nurses this year have already received two pay increases: an across-the-board salary increase in February 2009 of roughly four percent, and a step increase in July 2009.  As a result, the University is already paying at or above market-rate wages to its nurses.  According to the most recent Allied For Health salary survey, UC is now paying, on average, a full percentage point more than its competitor hospitals in California.  And given the severity of California’s recession, it seems highly unlikely that statewide nursing wages will increase at the rate estimated by the fact-finder.  In fiscal year 2008-2009, for instance, we saw a dramatically lower increase in nurses’ wages than had been anticipated by Allied For Health. 

Further, the fact-finder’s recommendations do not address the important issue of within-workplace parity.  Since September, most UC employees have seen furloughs and pay reductions of up to ten percent.  Those furloughs will be in place for participating employees through the end of September 2010.  Medical Centers were allowed to adopt an alternative plan, which spared staff from the furloughs and salary reductions by achieving similar cost-savings in other ways.

Under the fact-finder’s recommendations, UC would give multiple raises to nurses in 2010, while other employees continue to receive pay reductions. This would create serious questions of fairness and could have negative implications for employee morale.

A reasonable alternative – and one that would allow UC to remain competitive with the marketplace – is a step increase in 2010. The University and CNA will again negotiate salaries in late 2010, around the time that the furlough program is expected to end.  A step increase in 2010 (which would result in a wage increase of one or two percent) will allow UC to remain fully competitive in local markets.  The 2010 negotiations will give the parties an opportunity to assess economic conditions and re-evaluate the wage issue.

UC highly values its RNs and respects all they do to maintain the quality of care at the Medical Centers. We believe our contract proposal reflects a fair compromise, one that is equitable to all employees while maintaining our commitment to offer highly competitive compensation to our nursing staff.

As always, thank you for your dedication to providing our patients with quality medical care, and to your many contributions that help make UC Medical Centers among the best in the country.