Thursday, July 24, 2014

Crozer-Chester and nurses union still divided on "major sticking points"



Crozer-Chester Medical Center officials said some small progress is being made in negotiations with its nurses union on a new contract — but wages and pensions remain “big sticking points.”

The Upland, Pa., hospital’s contract with its 600 registered nurses, represented by Pennsylvania Association of Staff Nurses and Allied Professionals, expired June 15.

The union members have agreed to stay on the job during negotiations. Bill Cruice, executive director of PASNAP, said the union has filed a complaint with the National Labor Relations Board over Crozer-Chester's alleged failure to implement longevity pay increases after the current contract expired.

The two sides met for the 12th time last week, and reached verbal tentative agreements on provisions concerning staffing and professional development and monthly union-management meetings. (They declined to offer specifics as the negotiations are ongoing.)

Union officials said the two sides exchanged counterproposals in areas such as displacement, layoffs and revised health insurance benefits.

Two sides remain far apart on wages and pension payments.

PASNAP is seeking wage increases of between 1 percent and 3 percent, based on hospital net income levels. Crozer-Chester's compensation proposal includes a lower wage scale with a first-year wage freeze.

In February, the hospital laid off about 250 workers as its struggled with an operating deficit that, at the time, was $15.7 million.

Crozer-Chester issued a statement saying its nurses are paid “at rates that are far above what nurses at comparable hospitals receive” and Crozer-Keystone Health System, its parent company, continues to operate at a "severe deficit" because of declining reimbursement and inpatient volumes. The health system said its operations lost more than $32 million in fiscal 2014, which ended June 30.

“The performance of individual hospitals is debatable, but does not disguise the financial challenges facing our integrated health system,” Crozer-Keystone officials said, adding that its non-bargaining unit employees have not had a wage increase since September 2012. “We appreciate the union’s professional and collegial approach. But we cannot continue to follow the status quo indefinitely. We must have changes that bring RN wages, pay practices, and benefits to sustainable levels, and we must complete them before our financial challenges become even more acute.”

How much the nurses make is up for debate.

The average salary for a full-time Crozer-Chester nurse is about $103,000, according to the health system. Cruice disputes that figure saying PASNAP's review of its members W-2 forms put the average full-time salary at about $84,000. He also said many nurses at the hospital work part-time.

“The higher salary is reflective of the experience of the nurses who work at the hospital,” Cruice said. “The hospital has a very senior workforce, and nursing is one of those professions where you are paid more when you gain more experience and knowledge.”

The union is also opposed to Crozer-Chester's proposal to freeze its underfunded defined benefit pension plan, which has a deficit of more than $200 million, and moved to a define contribution retirement plan as of Jan. 1, 2015. While the union’s preference is to keep the pension as it is, PASNAP proposed moving to a multi-employer pension plan patterned after one created by the New England Nurses Association and a group of hospitals in Massachusetts. Crozer-Chester said it believes that model was “risky at best.”

The two sides are scheduled to resume bargaining on Aug. 4. Two additional sessions have been scheduled for later in the month.

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