Union employees at Prestonsburg, Ky.-based Highlands Regional Medical Center have rejected the hospital's latest contract offer and could issue a strike notice next week, according to a Floyd County Times report.
The employees are represented by the Service Employees International Union 1199. If a contract agreement is not reached during the next negotiation session scheduled for July 17, the union plans to issue a 10-day strike notice, according to the report.
The main sticking point during negotiations has been health insurance coverage, especially for spouses. Highlands Regional first sought to end spousal coverage, and then proposed employees pay $110 every paycheck for spousal coverage, according to the report. SEIU has described this charge as "unaffordable."
Highlands Regional is attempting to cut costs "because of the real and immediate financial challenges it is facing," a hospital news release states. "Since 50 percent of the expense budget is committed to wages and benefits it is impossible to reduce expenses without impacting those items directly."
Negotiations started in June, and the current contract will expire July 19.
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