Agreement preserves worker benefits, increases wages, aligns employee benefit costs with employer contributions, and creates organizing principles at ambulatory care centers
(New York, NY) – The League of Voluntary Hospitals and Homes of New York (“League”) and 1199SEIU United Healthcare Workers East (“1199SEIU”) today announced a new tentative four year collective bargaining agreement that addresses critical issues facing healthcare providers and their employees.
Under the terms of the tentative agreement, which will require ratification by League and 1199SEIU members, employee wages will rise 13% over the next four years. In addition, all existing worker benefits, including healthcare coverage with no out of pocket expenses, will be preserved. In exchange, benefit contributions by League hospitals and homes to the National Benefit Fund will better align with the actual cost of employee benefits. The League and 1199SEIU also agreed on a set of organizing principles for workers at ambulatory care centers. The proposed agreement will run from October 1, 2014 through September 30, 2018.
Bruce McIver, President of the League of Voluntary Hospitals and Homes said, “This agreement demonstrates the strength of our commitment to work with 1199SEIU and tackle some of the most complex issues facing the healthcare industry today. In order to meet the challenges of an ever-changing landscape, each of us needs to make important compromises. We are pleased to have reached an agreement that preserves benefits and increases wages for our great workforce, while supporting the health and sustainability of New York’s non-profit hospitals, health system and nursing homes.”
“We want to thank the League and all the employers for engaging with us in a respectful, meaningful and productive dialogue,” said George Gresham, President of 1199SEIU. “Now we can all re-focus on our shared mission of providing the highest quality of care to our patients, and partnering to advocate for quality healthcare on the state and federal levels. In April, we lost our dear brother Basil Paterson, and these were the first negotiations in over two decades in which he was not with us playing a leadership role. Basil was a pioneer and a great advocate for social justice, and above all he was known for promoting graciousness, civility and common ground amongst seemingly disparate parties. He would be proud of all that 1199 members and League employers accomplished today, and the respectful manner in which we reached this landmark agreement.”
Under the contract, employee wages will increase according to the following schedule:
- October 1, 2014 – 3%
- October 1, 2015 – 3%
- October 1, 2016 – 3.5%
- October 1, 2017 – 3.5%
Key points in the benefit agreement include:
- Employer contributions will continue to fully fund the National Benefit Fund through September 30, 2018
- National Pension Fund contributions will remain at 11.25% through January 1, 2016, then be reduced to 10% in order to fund any wage increase over 3%. Contributions will remain at 10% if needed to fund other Fund shortfalls.
- Contributions for Small Funds (Child Care, Job Security Fund, and Training and Upgrading Fund) remain the same as current levels.
The League of Voluntary Hospitals and Homes of New York (LVHH) is an association, formed in 1968, of 109 non-profit medical centers, hospitals, nursing homes and their affiliated facilities in the greater New York metropolitan area. The League acts as the bargaining agent for its members in labor contracts and represents them primarily in the negotiations with 1199SEIU United Healthcare Workers East.
1199SEIU United Healthcare Workers East is the largest union in New York and the largest healthcare union in the nation. We represent over 400,000 members throughout New York, Massachusetts, New Jersey, Maryland, Washington, D.C. and Florida. Our mission is to achieve quality care and good jobs for all.