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Media Statement From Packard Children's Hospital and Stanford Hospital & Clinics

Posted on: Thursday, 1 December 2005, 00:02 CST

As first reported on November 22, Lucile Packard Children's Hospital and Stanford Hospital & Clinics announced again today that a "last, best, and final" contract offer has been presented to workers represented by Service Employees International Union (SEIU) Local 715. If the union has new proposals to make which are consistent with this last, best and final offer, our hospitals will receive and review them.

(November 22 media release is below) Hospitals Present "Last, Best, and Final Offer" to Union Workers; Packard Children's Hospital and Stanford Hospital & Clinics Make "Fair and Generous Offer" to SEIU Members

Lucile Packard Children's Hospital and Stanford Hospital & Clinics announced today that they have been unable to reach a new contract agreement with workers represented by the Service Employees International Union (SEIU) Local 715 despite presenting what hospital leadership has termed a "last, best, and final offer."

The hospitals and union have been in negotiations since September 27 on a new agreement to replace the existing contract. That contract expired on November 13 but talks continued through November 21. However, no future discussions between the hospitals and union are currently scheduled and both sides remain far apart on several key issues.

"Unfortunately, this is not very surprising to us," said Christopher Dawes, President and Chief Executive Officer at Packard Children's. "Union leadership seems more concerned with enhancing their organizing abilities than in considering our proposals and we don't believe they've adequately communicated our offer to their membership." The hospitals have proposed many significant changes to the expiring agreement, including:

-- Increased wages over the three-year agreement totaling an

average of at least 12%, with an additional 2.5% to 10% market

adjustment for many job positions.

-- Improved retirement contributions for employees with 15 years

or more years of service.

-- Fully paid HMO premiums for spouses of employees earning less

than $50,000 per year, which represents a significant change

for over 90% of these union represented employees. (Fully paid

HMO coverage will continue to be provided for employees and

their dependent children.)

-- Revised layoff/re-employment procedures.

-- Increased on-call and call-back pay, and educational

assistance.

"This collective package is very competitive with other hospitals in our region," said Martha H. Marsh, President and Chief Executive Officer of Stanford Hospital & Clinics. "This proposal enhances the compensation package offered to our SEIU represented employees and our ability to recruit and retain." The union represents 1,412 out of 8,432 employees at the hospitals. Represented positions include hospital support employees in jobs such as nursing assistants, housekeeping, food service and certain technicians.

Though the standard approach in collective bargaining is that the union puts forth its non-economic and economic proposals first, the hospitals took the extraordinary step of being the first party at the bargaining table to submit a wage and benefit proposal. "We did this despite the fact that it was the union that originally requested these contract discussions," added Marsh. "We also wanted to demonstrate the good faith with which we were bargaining and help speed along negotiations. Since that time we have also made several compromises to our original proposal, but the SEIU negotiators have shown little desire to meet us half way."

About Lucile Packard Children's Hospital

Ranked as one of the nation's top 10 pediatric hospitals by U.S.News & World Report, Lucile Packard Children's Hospital at Stanford is a 264-bed hospital devoted to the care of children and expectant mothers. Providing pediatric and obstetric medical and surgical services and associated with the Stanford School of Medicine, Packard Children's Hospital offers patients locally, regionally and nationally the full range of health-care programs and services from preventive and routine care to the diagnosis and treatment of serious illness and injury. For more information, visit www.lpch.org.

About Stanford Hospital

Stanford Hospital & Clinics is a university-owned, non-profit corporation known for advanced patient care. The 613-bed hospital in Northern California consistently ranks among the top in the nation in surveys by consumers and health professionals. Stanford Hospital & Clinics, in cooperation with the Stanford University Medical School, has pioneered medical advances that save lives and protect against disease. For more information, please visit our Web site at www.stanfordhospital.com.

Source: Business Wire

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