Diane Beck, a registered nurse in the surgical department at Hazel Hawkins Memorial Hospital and the chief nurse representative at the hospital for the California Nurses’ Association (CNA), came to the June 22 meeting of the Board of Directors San Benito Health Care District loaded for bear.
Standing before the board during the public comments portion of the meeting, Beck said she was speaking on behalf of her fellow nurses and hospital staff.
She told the board how disappointed the nurses were with the most recent developments from the administration.
“The administration claims the hospital is in crisis, but your financial filings show that you have been in the net positive gain the last five years,” she said. “We have demanded transparency and are met with hostility. You have asked our frontline staff, our nurses included, to make concessions to wages and benefits at the negotiating table. Yet, you still decided to impose changes even before having that discussion.”
The district did not respond before publication to Beck’s claim of “five years of net positive gains,” but as proof of her statement about staff concessions she held up a letter that she later shared with BenitoLink.
“You can’t say no because we’ve all received this letter in the mail the last couple of days that you’re implementing this change July 1, and we haven’t been to the table with you yet, which is tomorrow afternoon, which is disgusting,” she said.
The letter, dated June 15, states, in part: “This notice is to inform you of important changes to the San Benito Healthcare District Pension Plan (the ‘Plan’) sponsored by The San Benito Healthcare District (the ‘Employer’). The Plan has been amended to cease all future benefit accruals for all participants, effective as of July 1, 2023 (the ‘Effective Date’). This means that your Plan benefit will be frozen and will not grow beyond the level earned as of the Effective Date.”
The letter went on: “All benefit accruals under the normal retirement benefit formula will cease, and no new participants will become covered under the Plan. In other words, the amount of your benefit will be’”frozen’ at the level it reaches as of the Effective Date, based on your compensation and service history as of that date.”
The letter also covered education leave.
“Effective July 1, 2023, the District will offer Education Leave in an amount necessary for employees to meet their continuing education obligations for licensure renewal in the State of California for the position in which they are employed by the District. Education Leave hours will no longer accrue and are not cashed out,” it stated.
Beck and other union members who have discussed their contract with BenitoLink, believe the letter would violate a 2018 letter of understanding and resolution the board at that time approved to protect the union nurses. The approval was a preemptive move to dampen the effects of a potential sale of the hospital, as well as a pending decision (Janus v. AFSCME) by the U.S. Supreme Court that would strip public sector unions of their collective bargaining power.
The 2018 letter of understanding said that within 60 days of a sale or similar event, the hospital would provide the nurses union with the contact information for the new owner or operator.
Because the district declared Chapter 9 bankruptcy, however, there may have been no requirement to forewarn the union of its intentions. According to Upsolve, a nonprofit that gives assistance with bankruptcies: “A municipal debtor can rewrite or reject collective bargaining agreements (union contracts) without seeking approval from the union or the bankruptcy court, even though doing so could have a big impact on public employees’ pensions and other benefits.”
Beck accused the board of unilaterally freezing pension funds and changing how nurses and staff earn continuing education credits—effectively, she said, taking away staff education opportunities.
“You have given us an ultimatum to accept your cuts to our paid time off or dissolve our union contract which you filed to do in July,” she said. “We cannot continue to cut services and benefits to staff and expect to retain quality services. It is clear that this administration does not have the best interest of the staff or the community. It is why we are presenting to you today a vote of no confidence. We have lost faith in our leadership and question your intents when you resort to union-busting tactics.”
She said the union demanded the directors respect the contract and take steps to work with them to find solutions to the crises.
“Our Hazel Hawkins nurses and staff members can assure you we will not back down,” she said.
The nurses have been at odds with the health care district as far back as 2016, when they threatened to strike over their contract. In August of that year, they went on strike and by September they settled and ratified a four-year contract.
On July 27, 2022, the CNA ratified a new four-year contract but in January 2023 the nurses agreed to postpone their 3% pay increase for 90 days in consideration of the hospital’s financial crisis. CNA and the hospital agreed on a 12.5% across-the-board wage increase, which includes a 3.5% increase in the first year.
In November 2022, the nurses said in a news release they were deeply concerned to learn the board was taking steps to file a Chapter 9 bankruptcy petition, adding that they feared what it would mean for patients and the health and well-being of the county.
On May 22, the health care district filed Chapter 9 bankruptcy and set in motion a “pendency plan” that would “serve as the district’s budget, and guide financial decision making and policy during the Chapter 9,” according to the meeting agenda.
Related BenitoLink stories:
Nurses claim Hazel Hawkins’ staffing levels put patients at risk | BenitoLink
Hospital board directs administration to enter into mediation with nurses union | BenitoLink
Emotions run high as nurses strike; hospital denies charges of short-staffing | BenitoLink
Hazel Hawkins Hospital board approves letter to protect union nurses | BenitoLink
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