For weeks, the Coalition of Kaiser Permanente Unions (CKPU) has been in continued discussions with Kaiser about the PSP bonus for regions they say did not meet the “financial gate” necessary to trigger a PSP bonus which applies to every region except Northern California. There are ongoing disputes that are currently being adjudicated on the link between the financial gate and PSP bonus payout in several regions.

The Coalition called on Kaiser to pay the full PSP bonus to all Coalition union members regardless of the financial trigger, but they were not willing to do so. Kaiser initially offered to pay $1000 to full-time workers and $750 to part-time employees (coded less than 32 hours).

Coalition union leaders across the nation expressed our strong and widespread disappointment with Kaiser’s position. Now, Kaiser has agreed to increase their “thank you” bonus payout to $1500 for employees who were coded at 32 hours/week or more in 2021 and $1000 for those who area coded at less than 32 hours/week, regardless of the region meeting the financial gate. On-call and per diem workers are also eligible for this bonus.

Employees whose bonus or incentive plan met their targets and are expected to pay out more than $1500 will receive the higher payout. In NCAL, where the financial gate was met, PSP bonuses will be based on how each service area and the region overall performed on the goals established for the year (details available later this month).

Bonuses will be paid in March of 2022. Employees in SCAL must have been hired/rehired prior to 9/27/2021. Employees in NW, HI, CO, and MAS must have been hired/rehired prior to 10/02/2021. There is no comparable hire/rehire date requirement for NCAL or WA employees.

Please contact your local union representative with any eligibility questions or concerns.

The uncertainty around the PSP bonus this year is one more reminder of the importance of 2023 bargaining and our need to be united and ready to stand up for fairness and recognition.

Letter from Steve Shields, Senior Vice President on 2021 PSP Payout

National Agreement PSP information: Section 2, pp. 57-61

Kaiser has announced that every region in the country, with the exception of Northern California, did not make the “financial gate” necessary to trigger a payout of the PSP bonus this year under our National Agreement (Section 2, pp. 57-61). Every year, Kaiser unilaterally sets a financial goal based on a projected operating margin (the amount of operating revenue over operating expenses). If the region doesn’t reach that financial gate, then the PSP is not paid, regardless of how Coalition union members did on the performance goals (there are ongoing disputes on this link in many regions).

Upon hearing of the possibility of not making the financial gate, due mainly to increased COVID expenses, the Coalition of Kaiser Permanente Unions (CKPU) met with Kaiser’s national leadership on February 4th. The Coalition’s proposal called for a full PSP payout in light of the extraordinary commitment shown by Kaiser employees throughout 2021. Coalition Union leaders admonished Kaiser for pinching pennies when it comes to frontline staff, as other hospitals offer large recruitment and retention bonuses to highly in-demand healthcare workers.

At that meeting, Kaiser’s initial position was that, while they are unwilling to pay the full PSP in regions that did not make the financial gate, they will provide some bonus in those areas. In the Southern California, Northwest, Washington, Colorado, and Mid-Atlantic regions, they are willing to pay anyone who worked 1,800 hours or more in 2021 a $1,000 bonus. Anyone hired as of Sept. 27, 2021, who worked less than 1,800 hours in 2021, would receive a $750 bonus under Kaiser’s plan. This applies to on-call workers as well. In Northern California, where the financial gate was met, PSP bonuses will be based on how each service area and region performed on the goals established for the year (details TBD).

The Coalition is currently awaiting a response from Kaiser management on our latest proposal.

It’s disappointing that Kaiser has indicated they will not be paying full PSP bonuses everywhere this year. While it’s true that COVID has impacted the operating margins, Kaiser continues to make billions of dollars from its investments and can afford to do better. This is one more reminder of the importance of 2023 bargaining and our need to be united and ready to fight for what we truly deserve after multiple years of putting our lives, our health, and our emotional well-being on the line for our patients.  

We now are calling on Kaiser to demonstrate a basic level of equity and decency in its approach to bonuses this year. In any region where frontline caregivers are receiving reduced bonuses because the financial gate wasn’t achieved, we expect executive leadership and management at every level to share the sacrifice. If respiratory therapists and EVS workers will only be seeing $1,000 bonuses, then the same must be true for managers in the region from department-level supervisors to regional presidents. This is simple fairness and speaks directly to Kaiser’s values. We will be watching.

We give our all to provide quality, compassionate patient care. We come to work despite mental and physical exhaustion. We cover shifts when staffing is short. We sacrifice our own health and safety to serve our communities.

Coalition union leaders have called on Kaiser to recognize our commitment and sacrifices made during this pandemic by providing all Coalition union members with a full PSP payout. We ask Kaiser to follow widely accepted public health principles– not scrutinize and penalize caregivers about attendance during the Delta and Omicron surges.

Kaiser has made billions, and executive pay has soared during this pandemic. Yet, Kaiser management may use regional “financial gate” metrics as an excuse to withhold PSP payouts. It is rumored that only Coalition union members in Northern California are in line for the full PSP payout– even though union members in every region gave their all this past year and deserve full credit for it.

Right now, Kaiser management has an opportunity to show how much they value their frontline workers. We ask them to make the most of it and continue showing it as we approach our 2023 National Agreement negotiations.