After months of stalemate, Juneau’s city-owned hospital and the employee union that represents roughly 70% of its staff have finally come to an agreement over a new contract.
At a meeting Monday night, the Juneau Assembly unanimously approved it.
The International Longshore and Warehouse Union Healthcare Unit 2201’s previous three-year contract expired on July 1. But negotiations for a new one had stalled over disagreements with Bartlett Regional Hospital administration on how much wages should increase.
At the time, the union wanted to see a 12% pay bump over the next three years, but Bartlett was only willing to offer 8.25%. The difference between the two is about $5.2 million in the hospital’s annual budget.
The contract approved by the Assembly on Monday gives an 11% pay increase for union employees over the next three fiscal years. They’ll get a retroactive lump sum of about .5% for the time they worked since July without an agreement.
This comes as the hospital tries to recover after a difficult financial year. Last spring, hospital leaders shared it was facing a multimillion-dollar budget crisis that threatened bankruptcy.
To get back on track, the hospital cut back staffing and closed programs like the Rainforest Recovery Center and its crisis care unit last summer and fall.
A recent financial update shared by the hospital in late December showed it was now making steady positive income for the first time in years.
In a statement shared with KTOO, union leadership said the hospital could be doing more to recruit and retain employees, but called the contract agreement a “good step in that direction.”