Agreement Raises Wages and Supports Continued Financial Recovery for State’s Skilled Nursing Facilities
Springfield, Ill. – May 13, 2025 – With support from the Health Care Council of Illinois (HCCI), the Illinois Association of Health Care Facilities (IAHCF) and the Service Employees International Union (SEIU) today announced the successful negotiation and agreement of a new contract that includes increased wages for frontline workers and a unified advocacy toward Medicaid reimbursement reforms. This agreement marks a significant step forward in ensuring labor peace and enhancing working conditions and benefits for skilled nursing staff across the state.
The new contract, which extends through August 31, 2029, builds upon the existing 2022- 2025 collective bargaining agreement with several key enhancements:
- Reauthorizes the IAHCF: Reestablishes a cooperative relationship for contract negotiations as a collective.
- Increased wages: Includes a $1 pay increase. The agreement also states that no less than 35 percent of a potential Medicaid rate increase will be dedicated to improving frontline wages and stafing levels in support and nursing departments.
- Joint Legislative Advocacy: Both parties committed to supporting a Medicaid rate increase as defined in HB 2858/SB1606 amended to require 35 percent of the net new total amount of increased payments are dedicated to improving frontline wages, benefits and staffing levels in support and nursing departments for nonsupervisory positions. Additionally, SEIU will withdraw support for HB 2507/SB 2245 and continue discussions on SB 1465/HB 2922.
- Continued Engagement: The parties agreed to reopen negotiations on wages, paid time oF, health, pension and other benefits, effective Sept. 1, 2027.
- Collaborative Efforts: The parties also agreed to meet regularly to address any issues collaboratively, ensuring robust workforce and patient outcomes and preventing potential conflicts or disruptions.
- Medicaid Reimbursement Reform: The parties will work together to develop a long-term approach to nursing home Medicaid reimbursement reform.
“We are proud to have reached an agreement that not only secures fair wages and benefits for our dedicated healthcare workers but also sets the stage for continued collaboration to address longstanding, underlying fiscal deficits and workforce shortages confronting the industry,” said Jonathan Aaron, HCCI board president and authorized representative of IAHCF.
“This agreement is a testament to the power of collective bargaining and the importance of working together to achieve common goals,” said Greg Kelley, President SEIU Healthcare Illinois. “We look forward to continuing our partnership with IAHCF and HCCI to advocate for the needs of our members and the communities they serve.”
The agreement is contingent upon ratification by the Union membership. All parties are committed to fulfilling these conditions and ensuring the successful implementation of the new contract.
FOR IMMEDIATE RELEASE:
May 13, 2025
MEDIA CONTACTS:
HCCI
Lindsey Hess
217-440-3870
lhess@hccil.org
Culloton + Bauer Luce
Natalie Bauer Luce
312-228-4790
nbl@cullotonbauerluce.com