Kaiser Permanente, headquartered in Oakland, posted $63.9 billion in operating revenue and nearly $2 billion in operating income for the first half of 2025, slightly higher than for the same period last year. The health organization and its affiliates, with about 12.6 million members, has been acquiring hospital systems in recent years, including in Pennsylvania and North Carolina.
Sims dismissed claims that Kaiser is putting the quality of patient care at risk, citing top ratings for its Medicare and commercial health plans. The threat of a walkout, he said, aims to pressure Kaiser to agree to union demands for a 25% pay increase over four years. The organization’s latest offer adds up to 21.5% and improves medical plans and retiree benefits, Sims said, showing that the private nonprofit health plan values its employees as it tries to keep care affordable for patients.
“They say their goal is to protect patients by ensuring better care and staffing, but the real issue is wages — they are demanding significantly higher increases than our 21.5% offer,” said Sims. “Their claims about Kaiser Permanente’s quality and staffing don’t reflect the facts.”
According to the employer, the organization meets and often exceeds California’s mandated nurse-to-patient ratios and staffing standards.
Kaiser’s offer includes gradual raises of 6.5% in 2025, 6.5% in 2026, 4% in 2027 and 3% in 2028, according to the Alliance. The union has proposed a boost of 13% in 2025, 6% in 2026, 4% in 2027 and 4% in 2028.
Peter Sidhu, UNAC/UHCP executive vice president, said the union agreed to much lower wage increases in contract negotiations during the COVID pandemic, because Kaiser maintained it was struggling financially. As a result, he said, the union’s members were left behind as inflation soared and other employees who went on strike got bigger pay boosts.
“We’re not just negotiating for today’s needs. We’re negotiating for the inflation that our members have had,” Sidhu, who worked for Kaiser for more than 20 years as a critical care nurse, told KQED. “And during that time, we’ve lost a lot of staff. There’s been a mass exodus. So in order for us to catch up and be competitive in this market, we need more than what they’re offering.”
KQED’s Kevin Stark contributed to this story.
