Deal reached between Loretto Hospital, union after 11 days on strike

CHICAGO - A new labor agreement was announced Thursday between Loretto Hospital and the Service Employees International Union (SEIU).

Hospital workers were on strike for 11 days before the agreement was made.

The union went on strike at the end of last month and said that the hospital is understaffed and that it's impacting the quality of health care. 

The hospital had long dealt with a dire staffing crisis, with vacancy rates ranging from 25% to 35% across various positions and an annual staff turnover of 60%, the union said in a statement. Now, Loretto workers can expect increased minimum wage rates across all job titles, comprehensive wage hikes, special recognition of years of service dedicated to both the Austin community and the hospital itself and a Juneteenth paid holiday.

"Today’s hard-fought victory is a testament to the collective power of working people to uplift entire communities. Frontline Loretto Hospital workers refused to settle for poor care and unsafe staffing, because the Austin community deserves better," said SEIU Healthcare Illinois President Greg Kelley in a statement. "This contract is a win for the entire West Side of Chicago."

Workers were demanding increased wages for all employees within the first year of a new contract.

SUBSCRIBE TO FOX 32 ON YOUTUBE

After several attempts at negotiating, hospital leadership announced the agreement Thursday night.

They released the following statement: 

We are pleased to announce that Loretto Hospital and the Service Employees International Union (SEIU) have reached a new labor agreement.  We appreciate the dedication of union and hospital leaders to secure a contract that addressed the concerns of our team members.  It is critical that Loretto Hospital remains open and accessible to the Austin community.  We will continue to partner with SEIU, clergy, corporate and community stakeholders to secure the funding and resources needed for the hospital’s long-term growth.  We welcome our team members back to work.

Last year, the hospital’s chief executive and president abruptly left. Employees learned of George Miller’s departure in a brief memo from the hospital’s general counsel.

The move followed several investigations from Block Club Chicago and the Better Government Association revealing alleged financial mismanagement at Loretto and potential misuse of COVID-19 vaccines when they were in high demand and short supply.

The Sun-Times Media Wire contributed to this report.