Mount Nittany, union that represents hundreds of workers ratify new 3-year contract
The union that represents more than 900 Mount Nittany Medical Center employees ratified a new three-year contract Wednesday with Mount Nittany Health that will reverse the proposed layoff of about two dozen employees.
Terms of the agreement also include lower costs for health care benefits, a 5% wage increase over the life of the contract, protections for retirement and language that safeguards job security if the hospital is sold, the Service Employees International Union wrote in a statement.
There are no discussions or plans to sell the hospital, Mount Nittany Health Executive Vice President and Chief System Strategy Office Tom Charles said Thursday.
“Our union’s primary goal during these negotiations was always to protect the future of Mount Nittany Medical Center for our community,” longtime registered nurse Carla Robinson said in a statement. “We’re happy to say we were able to work with management to do that and ensure we continue to deliver the five-star level of care we’re known for.”
The agreement put an end to nearly six weeks of negotiating in the midst of a pandemic. About 99% of the union’s members voted to ratify the contract, a union spokesperson said.
About 250 positions across the entire health care system were eliminated in June. Open positions that were not filled were included in the tally, Charles said. Most of the staffing changes were completed months ago.
About 25 union employees whose jobs were being phased out as a result of reduced volumes at the hospital were set to be included in the changes, but the contract calls for Mount Nittany to develop new job opportunities for those employees.
SEIU Pennsylvania represents about 40% of the health care system’s 2,400 workers. The nonprofit is the second-largest employer in Centre County and operates the county’s only hospital.
“The entire care team ... was united to settle a fair contract that would make sure we could continue to deliver the best care in the region and to protect the future of our hospital. I think we did that,” longtime environmental service worker Chrissy Thompson said in a statement. “We’re proud of Mount Nittany Medical Center and the work we do to care for our community. It’s more important than ever in these uncertain times.”
The contract with the union was the first reached under Mount Nittany Health President and CEO Kathleen Rhine. Her administration in June announced the health system was facing a $70 million revenue shortfall.
The health system ended the most recent fiscal year with about $12 million to $13 million in operating income, Charles said.
From July through September, emergency department visits were down 21%, inpatient admissions were down 14% and surgical cases were down nearly 10% when compared to the same time last year.
Adjustments began at the administrative and managerial level. About 50 positions were restructured or reduced, the health system said in May.
“With the completion of this negotiation process, we and our staff are now able to focus on what we do best — providing excellent patient care and maintaining our readiness to serve the community in the face of the significant challenges associated with COVID-19,” Rhine said in a statement. “We are also better positioned to meet future challenges and to adapt to the changing times. We know that our team shares our commitment to maintaining the outstanding quality of care that is our hallmark.”