EDMONDS -- Stevens Hospital and its 1,000 unionized employees may soon be facing an economic showdown.
There's been a downturn in the number of people admitted into the hospital, possibly due to the economy. The hospital has seen its revenues drop. May was a particularly bad month with operating losses of $432,000.
Hospital nurses and other employees, meanwhile, say they've seen the costs of basics such as gas and food skyrocket.
The two sides still remain separated after seven negotiating sessions. The next bargaining session is set for July 11.
The union's current three-year contract expires today, although hospital services are expected to continue as normal.
Next week, members of the SEIU Healthcare 1199 NW will be asked to authorize informational picketing at the hospital, said Bob Downing, a union organizer. That unit represents a variety of workers, including nurses, food service workers and technical employees, or most of the hospital's employees except for the doctors.
If approved, the picketing could take place in mid-July, he said.
While negotiations are in a holding pattern with its workers, the hospital's five-member, elected board last week approved an annual pay raise of 5.3 percent for Mike Carter, its chief executive. His base salary is now $383,931.
The board previously approved an incentive plan for Carter in March that will allow him to earn up to 30 percent more in incentive pay if he achieves a long list of goals this year.
Meanwhile, all hospital departments are being asked to help cut expenses by 3 percent for the rest of the year, said Rick Canning, chief financial officer. The goal is to save $700,000 to $800,000 out of the hospital's $150 million budget.
The hospital's goal is to end the year with a $3.6 million profit, he said.
Long-time hospital employee Jackie McGeachy, also a member of the union's bargaining team, is urging the hospital to maintain health benefits and improve pay.
Employees are upset about the contract proposals made by the hospital so far, she said. "Especially if you consider the cost of gas and other expenses, it doesn't keep up with inflation."
McGeachy acknowledged that the hospital has seen its income decline in the last several months due to the general slowing of the economy.
"We take that into consideration," she said. "We feel the money is there, it's a decision on how to expend it. We have to keep current with other hospitals to keep qualified employees."
Long-time board member Fred Langer said that the hospital's philosophy on pay issues is to pay market rates.
The hospital's board is "committed to making certain that everyone at Stevens Hospital is paid at the fair market rate," Langer said.
"I can't look at nurses and say they should accept wages less than the market, nor can I look at my administrator and ask that," he said.
The hospital and the union are now trying to determine what market rates will be over the next three years, the duration of the contract, Langer said.
Stevens Hospital is one of a number of hospitals in the Puget Sound region that will be in negotiations with its workers this year. Contract talks also are under way with Swedish Medical Center in Seattle, Valley General Hospital in Monroe, Valley Medical Center in Renton and Highline Medical Center in Burien, said Linnae Riesen, an SEIU spokeswoman.
