El Camino Hospital in Mountain View, Calif., and the Service Employees International Union are butting heads over whether layoffs are necessary, according to a Wall Street Journal report.
When the hospital announced plans to lay off 140 workers due to an increase of nonpaying clients, the SEIU protested the cuts, citing the hospital's recent $36 million profit for the fiscal year that ended in June.
El Camino CEO Ken Graham said layoffs, benefit reductions and other staffing reductions are part of a three-year plan to save the hospital $60 million, according to the Wall Street Journal report. Hospital leaders said the layoffs are necessary to align expenses and revenue.
Some union officials say the threats of layoffs are aimed at squeezing concessions out of SEIU, rather than an economic necessity. Because El Camino's revenue is expected to rise over the next year, the union is working with the hospital to instead restructure work groups to prevent some layoffs.
Read the Wall Street Journal report on El Camino Hospital layoffs.
Read more on hospital staffing:
-Study Examines Implications For Other States of California Nurse Staffing Law
-6 Tips to Reach the Benchmark For Hospital Staffing & Labor Costs
When the hospital announced plans to lay off 140 workers due to an increase of nonpaying clients, the SEIU protested the cuts, citing the hospital's recent $36 million profit for the fiscal year that ended in June.
El Camino CEO Ken Graham said layoffs, benefit reductions and other staffing reductions are part of a three-year plan to save the hospital $60 million, according to the Wall Street Journal report. Hospital leaders said the layoffs are necessary to align expenses and revenue.
Some union officials say the threats of layoffs are aimed at squeezing concessions out of SEIU, rather than an economic necessity. Because El Camino's revenue is expected to rise over the next year, the union is working with the hospital to instead restructure work groups to prevent some layoffs.
Read the Wall Street Journal report on El Camino Hospital layoffs.
Read more on hospital staffing:
-Study Examines Implications For Other States of California Nurse Staffing Law
-6 Tips to Reach the Benchmark For Hospital Staffing & Labor Costs