Los Angeles Times - 08.09.2019

(vip2019) #1

LATIMES.COM/BUSINESS S SUNDAY, SEPTEMBER 8, 2019C7


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agency it serves a commis-
sion-free contract option.
He said Platinum re-
mains open to working with
the activists and is attempt-
ing to meet Worth Rises’ de-
mands where it can, but he
complained that activists
really prefer to have the com-
pany and industry shut
down and dismantled.
“I’ll just tell you the work
is the work,” he said, adding
that activists prefer to “de-
monize us, to demonize the
company, to demonize the
industry.”
Tylek acknowledged the
goal is to make companies
such as Securus “toxic as-
sets,” but said Platinum still
needs to move faster on re-
forms, which she said have
come only under the most
extreme pressure. “They
continue to promise action,
but the longer it takes for our
communities to see relief,
the more their promises are
sounding like marketing,”
she said.
Activists plan to next tar-
get Apax Partners, a London
firm that is raising money
and owns electronic-moni-
toring company Attenti. In-
stead of freeing prisoners
from jail or prison, critics say
these companies actually
widen the net of incarcera-
tion by encouraging moni-
toring. But Tylek said Worth
Rises “will continue to be a
thorn in Platinum Equity’s
side,” focusing especially in
Detroit, where Gores is a
prominent local figure.
“We will go at every avail-
able public pressure point,
and if that means leveraging
their public face with the Pis-
tons we will do that,” Tylek
said.
Clearly, there would be
sensitivities in Detroit,
where the Pistons are a
month away from opening a
$90-million practice facility
that will feature shops and
other community benefits,
and few are willing so far to
comment on the matter.
Mayor Mike Duggan, who
has effusively praised Gores
for bringing the Pistons back
to the city, declined to com-
ment for this article, with a
spokesman saying that he
has never heard of Securus.
ESPN analyst Jalen
Rose, a former NBA player
who runs a Detroit charter
school Gores supports
through a celebrity golf
tournament, said through a
spokesman that he “respect-
fully declined” to participate
in this article after being told
of its content.
Gores is a personable bil-
lionaire who whoops it up on
the sidelines and has a repu-
tation as a player-friendly
owner, video-chatting and
texting with athletes.
During the height of the
Colin Kaepernick contro-
versy, when the NFL
quarterback was drawing
massive attention for kneel-
ing during the national an-
them to protest police bru-
tality, Gores stood out when
he said he would support his
players if they wanted to do
so themselves.
But the optics of an in-
vestment in a prison telecom
are worsening as consensus
grows that mass incarcera-
tion — with an estimated 2.2
million people in U.S. jails
and prisons — has contrib-
uted to poverty, destroyed
families and eaten into gov-
ernment budgets at all lev-
els.
Former Vice President
Joe Biden has had to repeat-
edly defend himself on the
presidential campaign trail
for his backing of 1994 tough-
on-crime legislation that
critics say contributed to the
problem. And bipartisan
legislation that could cut the
prison terms of some federal
offenders even drew Presi-
dent Trump’s signature this
year.
Gores maintains the out-
cry has energized him, and
he promised to get more per-
sonally involved in manag-
ing Securus, something typi-
cally left to Platinum’s oper-
ations staff. He also offered
to sit down face to face with
activists to help improve the
company.
“There are not a lot of
things that get me too ex-
cited, but this is in a way
something where I can get
inspired to make a difference
to a lot of people,” he said. “I
am a kid who grew up in Flint
and started with nothing,
and if I could figure that out
and get where I am today,
then I can figure this out,
and I am going to make a dif-
ference.”


Gores’


Securus


stake in


spotlight


[Gores,from C6]


The coalition is now
down to 11 locals mostly
affiliated with the SEIU,
though it represents the
larger group of Kaiser work-
ers — 83,000, as opposed to
49,000 within the Alliance
unions. Although the Alli-
ance unions reached a con-
tract agreement last year,
the SEIU-UHW remains
locked in increasingly acri-
monious contract talks with
the giant not-for-profit
hospital and insurance
company. Last month, more
than 37,000 Kaiser employ-
ees who are members of the
SEIU-UHW voted to allow
their leadership to call a
nationwide strike if no con-
tract is reached by Oct. 1.
The result could be a walk-
out by more than 80,000
Kaiser employees.
This all signifies that the
two-decade peace largely
brought about by the part-
nership may be in jeopardy.
Kaiser and the Alliance
unions are determined to
continue the partnership,
but they’re uneasy about
the UHW’s tendency to
question the partnership’s
continued relevance. Says
UHW President Dave Re-
gan, “There’s a lot of cyni-
cism and frustration across
the workforce that what was
once a model partnership
has become just a public
relations tool for Kaiser,
that it’s not a genuine part-
nership anymore. What’s
clear to the coalition is that
Kaiser’s definition of what
the relationship is has
changed, and not for the
better.”
The Alliance disagrees.
“We feel our contracts have
continued to thrive,” says
Denise Duncan, head of
United Nurses Assns. of
California/Union of Health
Care Professionals, which
helped form the new Alli-
ance and reached contract
terms with Kaiser last year.
“We feel that our work-life
balance has improved, and
nurses have been able to
have a better say on what
patient care should look
like. We feel we made the
right decision” to stay with
the partnership.
In the broadest terms,
what’s at issue are the strat-
egy and tactics of organized
labor at a time when unions
are reckoning with a long
slide in their membership
and facing unexampled
hostility from the federal
government and many state
governments. The Labor
Management Partnership
has long been seen as a
promising alternative to the
traditional models in which
labor battled to organize
workers under pressure
from management anti-
union campaigns, then
held contract negotiations
under the shadow of strike
and lockout threats. The
UHW’s policy has tended
toward returning to the old
models.
The goal of Kaiser’s
Labor Management Part-
nership was to create a
system in which both sides
could work out their differ-
ences in collaboration, not
conflict. That hasn’t always
succeeded in practice, ob-
serves Adrienne Eaton,
dean of the Rutgers School
of Management and Labor
Relations and coauthor of a
2009 study of the partner-
ship’s first decade.
“There certainly have
been bumps along the way,”
Eaton told me. “It hasn’t
always been a labor rela-
tions utopia by any means.”

But during the partnership
period, she says, at Kaiser
“collective bargaining
agreements have been quite
positive for the workers,
with industry-leading wages
and benefits, and the oppor-
tunity for healthcare work-
ers to participate in making
the work better. It’s hard to
ignore that.”
What’s especially ironic
about the challenges facing
the partnership is that the
SEIU was a driving force in
creating the arrangement.
In the mid-1990s, Kaiser
Permanente faced a finan-
cial crisis that seemed des-
tined to lead to labor chaos.
The healthcare firm was in
the red by more than $250
million. Its standards for
patient care were slipping
and widespread layoffs
appeared to be looming. As
Steven Greenhouse ob-
serves in his new book on
labor history, “Beaten
Down, Worked Up,” John
Sweeney, then the SEIU
president and a future head
of the AFL-CIO, told then-
Kaiser Chief Executive
David Lawrence that “Kai-
ser had two choices: war or
partnership.”
The result was “the
largest, most complex,
ambitious, and broad-based
labor-management part-
nership in U.S. history,” as it
was described by Eaton and
three coauthors in “Healing
Together,” the 2009 study of
the partnership.
The Labor Management
Partnership has not always
been to everyone’s taste.
From the inception in 1997, it
has been shunned by the
California Nurses Assn.,
which represents about
21,000 Kaiser nurses and
nurse practitioners. “We
believe it undermines the
voice of nurses, who are
obligated to speak on behalf

of the patient, not the em-
ployer,” says Chuck Idelson,
a spokesman for the nurses
union. “The partnership
was premised on the unions
being part of the advocacy
of the employer, not the
public interest.”
Eaton suggested that the
current problem may not
reflect flaws in the partner-
ship as much as “the
changed politics within
SEIU.” She could be right.
SEIU-UHW policies have
taken on a distinctly ob-
streperous tone since the
election of Regan as presi-
dent in 2011. Under Regan,
the union has sponsored
ballot initiatives designed to
curb hospital revenues and
CEO compensation. Last
year, it sponsored a measure
to limit premium increases
by health insurers under
conditions that made clear
it was aimed specifically at
Kaiser. (The proposal was
ultimately withdrawn.)
The breakup of the coali-
tion also has been blamed
on Regan. “We had a funda-
mental disagreement with
SEIU,” says Duncan. Alli-
ance members have pointed
to Regan’s insistence that
his union play a dominant,
even exclusive, role in set-
ting policy for the coalition.
Regan says, in response,
that because of “outdated
governance rules,” unions
representing one-third of
the members were able to
outvote the majority. When
the current negotiation
cycle opened last year, he
says, “we were concerned
that the one-third group
was prepared to give con-
cessions and to reach a
weaker agreement than the
rest of us thought was ap-
propriate.” But he says
UHW never insisted on
“unilateral” authority.
The atmosphere of the

current negotiations be-
tween Kaiser and the UHW
may be the most acrid since
the partnership started.
The union’s public cam-
paign has focused attention
on Kaiser’s thriving finan-
cial results of $2.5 billion in
net income on $79.7 billion in
operating revenue last year.
The union has weighed the
more than $16 million paid
to CEO Bernard Tyson in
2017, the most recent date
available, against what it
says is Kaiser’s relatively
low level of enrollment of
low-income Medi-Cal
members compared with
other nonprofit hospital
groups.
Kaiser has fired broad-
sides in response. In an
open letter published
Tuesday, Tyson accused the
union of delivering “a false
narrative” and trying to
“misconstrue what is really
happening within negotia-
tions.”
The unions say Kaiser
wants to create a lower level
of retirement benefits for
new hires, shifting them to
401(k)-style defined contrib-
ution plans rather than
defined benefit pensions.
The union has asked for an
explicit agreement from
Kaiser not to outsource

jobs.
Kaiser acknowledges
that it has proposed paying
newly hired workers initially
at a lower pay scale than
current workers. It’s offering
raises of 3% a year in a four-
year contract to California
workers, but less to workers
outside the state; the union
says it’s seeking parity in
raises to all workers.
“The relationship itself is
an issue at the center of
this,” Regan says. “Will it
really be a partnership?”
Kaiser explicitly regards
UHW’s attacks on its fi-
nances and its initiative
sponsorship as flagrant
breaches of the partnership
principles.
“The true test of the
partnership is how we treat
each other when we dis-
agree,” says Arlene Peas-
nall, Kaiser senior vice
president for national hu-
man resources. “When
things are going well, it’s
easy to partner. But when
things get tough, you’re
supposed to work in a col-
laborative way, not work to
tear each other down. A true
partner doesn’t try to hurt
its partner’s reputation, its
brand, or try to hurt it finan-
cially.”
The outcome of the talks
may well determine the
shape of the partnership
going forward. “We think we
can rebuild the partner-
ship,” Regan told me. That’s
a sentiment that Kaiser
officials would share.
“Like a good marriage,”
Peasnall says, “a good part-
nership takes a lot of work
and a lot of energy.”

Keep up to date with
Michael Hiltzik. Follow
@hiltzikm on Twitter, see
his Facebook page, or email
michael.hiltzik
@latimes.com.

Behind the labor acrimony at Kaiser


[Hiltzik, from C1]

MARRIAGE and family therapists Leslie Fuentes-Nguyen, left, and Monica Garcia rally with other mental health workers in December.

Christina HouseLos Angeles Times

‘There certainly


have been bumps


along the way. It


hasn’t always been


a labor relations


utopia by any


means.’


—Adrienne Eaton,
coauthor of “Healing Together,”
a 2009 study of the partnership
Free download pdf