Stanford Report, January 25, 2006

Hospitals, union agree on contract with three years of wage increases

Lucile Packard Children's Hospital and Stanford Hospital & Clinics reached a new three-year contract agreement on Jan. 20 with employees represented by the Service Employees International Union Local 715, averting a two-day strike scheduled to begin Jan. 24.

The SEIU represents 1,412 out of 8,432 employees at the hospitals in jobs such as housekeeping and food service workers, nursing assistants and various technicians.

"This contract preserves the hospitals' ability to maintain high-quality patient care and provides employees substantial wage and benefit increases," said Martha H. Marsh, president and CEO of Stanford Hospital & Clinics, and Christopher Dawes, president and CEO of Packard Children's.

"With this new contract, everyone wins—our employees, our patients, and our community," they said.

Highlights of the new contract include:

  • Increased wages over three years averaging at least 12 percent.
  • An additional 2.5 to 10 percent salary adjustment for many positions.
  • Continued 100 percent employer-paid health coverage for employees and their children, and 75 percent employer-paid health coverage for spouses.
  • For employees earning less than $50,000 a year, 100 percent employer-paid health coverage for spouses.
  • Increased retirement contributions for employees with 15 or more years.
  • Increased on-call and call-back pay and added assurances related to job security and planned growth.

    • "We wish to thank our SEIU employees and its leadership," said Marsh and Dawes. "There could not have been an agreement without their support and dedication to the patients we serve."