HealthSpan

Service Employees International Union Local 113

English

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Federal Publications Key Workplace Documents 
January 1994 
Brief on Labor Management Cooperation Submitted to the 
Commission on the Future of Worker-Management Relations 
HealthSpan 
Service Employees International Union Local 113 
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Brief on Labor Management Cooperation Submitted to the Commission on the 
Future of Worker-Management Relations 
Comments 
Suggested Citation 
HealthSpan & Service Employees International Union Local 113. (1994). Brief on labor management 
cooperation submitted to the Commission on the Future of Worker-Management Relations. Retrieved 
[insert date], from Cornell University, School of Industrial and Labor Relations site: 
http://digitalcommons.ilr.cornell.edu/key_workplace/410/ 
This brief is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/key_workplace/410 
HealthSpan and SEIU Local 113 
Brief on Labor Management Cooperation 
To 
The Commission on the Future of Worker/Management Relations 
Health Span is a not for profit health care system headquartered in Minneapolis, Minnesota 
v.iih approximately 15,000 employees throughout the state. The corporation consists of 
owned and affiliated acute care hospitals and long-term care facilities; owned and affiliated 
medical practice groups; over 3,200 affiliated physicians; and a supportive diversified 
business providing home care, medical equipment and transportation services within the 
upper Midwest. HealthSpan provides health care for 27 percent of the Twin Cities 
Metropolitan area market. 
Forty-three percent of the 12,300 hospital employees employed by HealthSpan are 
represented by labor organizations certified under the National Labor Relations Association 
(NLRA). Labor organizations representing employees involved in existing cooperative 
efforts are Service Employees International Union (SEIU), Local 113; Minnesota Nurses 
Association (MNA); International Union of Operating Engineers, Local 70; Minnesota 
Licensed Practical Nurses Association (MLPNA); Association of Diagnostic Imaging 
Technicians; and Plumbers arid Pipefitters International Union, Local 561. 
SEIU Local 113, Minnesota's Health Ca~e Workers Union, AFL-CIO represents over 10,000 
Minnesota health-care workers including service workers, RNs and LPNs, X-Ray and 
Laboratory Technicians, dental hygienists, pharmacists and psychotherapists. These 
members are represented in hospitals, nursing and group homes, health maintenance 
organizations and private clinics. Two thousand Local 113 members are currently employed 
by HealthSpan. 
Background/History 
Human Resources from United and Childrens' Hospitals of St. Paul, MN, began meeting Ln 
1983 with Local 113 and other labor organizations to explore options for expanding hospital 
and labor organization relationships. Discussions between the hospitals and the unions 
resulted in a commitment to develop a labor-management committee (LMC) structure during 
1984. The structure would provide an opportunity to more effectively discuss workplace 
issues outside the bargaining and grievance procedure process. Initial assistance, training in 
LMC processes and facilitation was provided by Federal Mediation and Conciliation Services 
(FMCS). 
Three labor management committees, one for each bargaining unit, were established. 
Management and labor separately selected their own committee representatives. Management 
representatives included the Human Resources Vice President, Operations Vice President, 
Personnel Manager and selected department heads. The elected head of each union, the staff 
member assigned to the particular bargaining unit and stewards were selected by the union. 
In 19S5, the LMC process received a Labor .Management Cooperative Grant frorn FMCS. 
The $50,030 grant provided funding to hire an internal labor management coordinator v.bo 
v.ould facilitate the evolving labor management cooperative process at the hospitals. At the 
conclusion of the 18 month grant period, joint funding and supervision of the labor 
management coordinator position was continued. 
In 1988, Health One (parent company to United HospitaJ) and Health Central merged to form 
a new HeaJth One. L.MC processes were expanded within the new company to new 
bargaining units and locations. 
Discussions to establish a jointly sponsored continuous quality improvement (CQI) process 
for the company led to an examination of existing practices and processes within the labor-
management committee arena. A corporate wide Labor Management/CQI structure was 
developed to ensure equal support for labor management cooperation and quality 
improvement; enhance union and management relationships. Risks and benefits of 
cooperation and critical success factors were identified. As equal partners in the process, a 
written agreement has been developed. The "Co-Sponsorship Agreement" sets in place the 
cornerstones and foundations for success needed to accelerate our cooperative process. The 
agreement identifies our relationship, and establishes the boundaries and relationship of 
cooperation to the collective bargaining agreements and the rights and obligauons of both the 
employer and unions. {Critical Success Factors - Exhibit 1; Co-Sp&nsorship Agrtemeru -
Exhibit 2) 
In March 1993, Health One and Lifespan merged to form yet another new company, 
HealthSpan Corporation. While Health One had developed significant opportunities for labor 
and management to cooperate, Life-Span had not. Both labor and management are currently 
in the process of building upon, enhancing and continuing current relationships by working 
through issues, establishing a framework and setting ground rules. 
Costs and competitive business conditions have required the hospitals to re-examine how 
health care is delivered. Jointly managed patient care redesign and cost reduction processes 
have been initiated at several locations. The processes are being jointly developed and 
managed in a manner that allows management and labor to keep their obligations and rights 
to represent separate interests while focusing on necessary change in a wide variety of work 
processes. 
FMCS's early direct assistance and ongoing support by FMCS, the Bureau of Mediation 
Services of the State of Minnesota, Metropolitan Hospitals Labor Management Council, and 
Twin Cities Area Labor Management Council have been instrumental in creating the 
environment for change. The National Center for Dispute Settlement has provided a model 
and consultative assistance within which we have self designed our cooperative process. 
In response to specific question areas requested by the commission, we submit the following 
as a present state analysis of our process: 
The Twin Cities health care market is a highly competitive market that includes multi-
employer bargaining relationships. Labor and management recognize that multi-employer 
bargaining by its nature brings limitations in adequately addressing HealthSpan and labor 
unions' specific day to day operational issues. The company's interest is in creating a pro-
employee environment and recognizing the union as legal representative of employees. The 
unions' interest is in representing those workers and ensuring employment security. To 
provide security the company must be successful. Cooperative efforts provide an 
opportunity for labor and management to come together around mutual interests for the 
betterment of both parties. 
Health Span has undergone a process to determine our mutual interests, appropriate 
stakeholder groups for inclusion in our cooperative processes and have designed a specific 
approach for labor unions and company. Each stakeholder group has determined its own 
representation and has been involved in the labor management and CQI process development. 
As a result we have multiple levels of involvement tied together in a unified structure. 
(Structure - Exhibit 3 ) 
Corporate Labor Management/CQI Council 
A 25 member joint Labor Manage menl'CQl Council consisting of executives throughout the 
corporation and labor union leaders was developed. Its purpose is to: 1) support quality 
improvement; 2) develop a culture of trust, respect, joint decision-making and problem 
solving; and 3) develop and provide on-going support, education and direction concerning the 
joint corporate quality vision and labor relations policies. Council membership is 
determined by the each stakeholder group with each monthly meeting being co-chaired by 
management and labor. Decision making is by consensus. 
The corporate Council discusses strategic business issues, financial performance and direction 
within the company. The "Rights and Obligations" section of the Co-Spor.sorship Agreement 
indicates that management will involve labor in a wide variety of problem solving activities. 
As labor and management continue to build more cooperative relationships, and define areas 
of mutual interest it is expected that the boundaries of success will continue to expand and 
broaden. 
Operating Unit Labor Management/CQI Councils 
Joint Labor Management/CQI Councils have been established at each organized operating 
unit. Membership on those committees is determined by identification of stakeholder groups 
and selection of representatives from those groups. They operate within the parameters of 
the Co-Sponsorship Agreement. A key organizing concept has been the corporate wide LM-
CQI Council providing a framework within which individual operating units and labor 
organizations develop their cooperative partnership. Operating unit LM/CQI Councils are 
responsible for developing and implementing a cooperative labor relations strategy and 
continuous quality improvement at the hospital/operating unit level. Each Council develops 
its LM/CQI implementation plan consistent with the operating unit culture. The result is a 
strategic plan which is then reviewed through a chartering process by the corporate council. 
Unit councils may establish a joint Guidance Team to manage the CQI team and project 
selection process or retain those functions. 
Bargaining Unit Labor Management Committees 
The labor management process has continued to expand and evolve since its beginning in 
1984. Bargaining unit specific LMCs have continued. Currently, 13 LMCs exist with 
several more in the developmentaJ stage. Membership is determined by each committee with 
a variety of mechanisms in place for member rotation. Bargaining unit LMC's are 
responsible for the transformation of the nature of the relationship between labor and 
management into a collaborative relationship, the facilitation of labor management 
relationships throughout the organization, improving communication; providing a problem-
solving framework and increasing emplovee involvement in day to day operations of the 
employer in addition to other activities at the bargaining unit level. LMC's regularly spinoff 
work to sub groups lead by LMC members. They provide a viiaJ feedback and 
communications link between the LM-CQI Councils at the facility and the bargaining unit 
membership. 
Operating unit LM/CQI Councils and LMCs meet once a month. Most committees are co-
chaired by a labor and management representative. They operate with established ground 
rules and with consensus agenda setting and decision making. Some committees establish 
agendas off action items identified at the previous meeting. Other committees establish 
agendas through the co-chairs, communicating them prior to the meeting. Committees meet 
on the employer's premises during regular working hours with employees compensated 
according to their contractual labor provisions. Separate budget items have been set up for 
CQI and in most cases labor management cooperative efforts including any sub-group or task 
force meetings resulting from the processes. This includes payment of time or replacement 
costs of an employee to be released from work. 
v . 
CQI Process Improvement Teams 
Process Improvement Teams are formed through a joint overview process established by each 
Operating Unit LM/CQI Council. Team membership is voluntarily determined. Team 
leaders are selected by the team. Facilitators for teams are selected by the LM/CQI Council 
and trained internally in a specifically designed program. 
Selected significant accomplishments have been: 
• Development of Emplovee Relations Principles, the Co-Sponsorship Agreement and an 
Employment Security Policy merging the LMC and CQI processes. 
• Facilitator training of Union Business Agents, Council and LMC members, managers and 
bargaining unit members. A result is the beginning of the integration of quality 
improvement techniques and data driven decision making into LMC and other labor 
relations discussions. 
• Selection of over 150 CQI teams with significant financial and process improvements 
resulting from their efforts. 
• Improved steward-supervisor/business agent-manager relationships. 
• Establishment of joint decision making on contracting-in/subcontracting-out of work 
which resulted in improved quality and a savings in excess of $500,000. 
• Closing of an 800 bed hospital affecting 1,800 employees; developing a jointly managed 
placement process which resulted in placing all but 100 employees at a cost savings of at 
least $5,000,000. (Health One Downsizes - Exhibit 4) 
• Development of joint workplace safety programs. 
• Joint contract interpretation training following contract negotiations. 
• Projected cost improvements in excess of S10,(XX),000 through work redesign. 
Before starting a labor management process, it is important to be sure of your commitment to 
the process. This is a business decision for management and an organizationaJ decision for 
labor. Developing a process that will succeed requires a clear understanding by both labor 
and management that the necessary changes in relationships do not happen overnight. 
Effective working relationships require trust and good faith, and are built one step at a Lime. 
They require a significant investment of Lime, resources, training and degree of risk to design 
a process that reflects organizationaJ cultures and meets the relationship needs of both 
management arid labor. How you begin is the key. This means labor arid management need 
to clearly define what their separate interests and goals are for the cooperative process, be 
dedicated to the concept of cooperation; and be willing to share, learn and change. 
A key to HeaJthSpan's success was the investment we made from the beginning. 
OrganizationaJ values, Employee Relations Principles, staff support, budget, training and 
education supported the joint attention to process, structures, ownership, control and 
implementation. 
Through our experiences, we have learned several lessons. They include: 
• Involving the unions early in developing employee involvement processes. 
• Middle management involvement in developing and managing any joint process is 
critical. They are stakeholders a^d will resist if left out. 
• Training in group process and labor management cooperation principles is necessary at 
every level in the process. 
• As relationships'develop, the decision making process needs to move away from 
information sharing and consulting, and move toward collaboration and consensus. 
• Invoking a "No Surprise" principle into your relationships will significantly improve the 
labor management relationship. 
• Communicate - Communicate - Communicate 
If we had to do it all over again, we would. It is our hope that the Commission can find 
ways to support cooperation between labor and management. We have enriched our 
working relationships, significantly improved the work lives of those people employed by 
HealthSpan, expanded the opportunity for labor organizations to meet their memberships' 
needs, and improved the company's financial and organizationaJ effectiveness. Labor and 
management are equal partners in defining and benefiting from areas of mutual interest. 
Thank you for the opportunity to address the commission. We support your efforts to 
improve labor relations and look forward to supplying any additionaJ information to help you 
in your deliberations. 
Critical Success Factors 
HealthSpan 
Labor-Management Cooperation 
inhibit 
Management 
Clear definition of management interests and goals 
Dedication to the concept at all levels 
Willingness to devote time and resources 
Active/visible leadership involvement 
Open Communication 
- Sharing information 
2 Listening to new ideas 
Willing to change 
Willing to take the lead in establishing trust and good faith ^ 
Union 
• 
Clear definition of the union's interests and goals 
Involvement from day one 
Communication with membership 
Clear recognition of possible dangers 
Active/visible leadership involvement 
Ability to commit to trust and good faith 
Adapted from Ibe National Crater for Dispute Settlement 


Brief on Labor Management Cooperation Submitted to the Commission on the Future of Worker-Management Relations

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