Frontline healthcare workers overwhelmingly approve contract agreement securing progress on staffing, pay and working conditions
Sutter Health “pleased to have reached an agreement”
Averted strike at 8 facilities including Sutter Delta in Antioch
By Maria Leal, SEIU-United Healthcare Workers West
OAKLAND, CA – Frontline healthcare workers at eight Sutter Health facilities across Northern California have overwhelmingly approved a new contract agreement with Sutter executives, averting the strike workers had authorized. Approved by a margin of 98%, the new agreement addresses critical issues around staffing and working conditions by ensuring fair pay and benefits for frontline healthcare workers, allowing them to continue serving patients without disruption.
“This new contract shows that when we stand united, we can win improvements that protect both healthcare workers and our patients,” said Dinora Garcia, a dietary clerk from Sutter Lakeside Hospital. “Reaching this contract agreement wasn’t easy, but we stood together to advocate for worker and patient safety, improved staffing levels, and fair wages and benefits that reflect the vital work we do daily.”
The contract agreement provides 14 percent across-the-board raises over the life of the contract for workers and protects healthcare and retirement benefits for these frontline healthcare workers. The agreement averted a strike at eight Sutter Health facilities in nine cities: Antioch, Oakland, Santa Rosa, Roseville, Berkeley, Lakeport, Vallejo, Castro Valley and San Francisco. (See related articles here and here)
SEIU-UHW represents various workers across Sutter Health, including nursing assistants, respiratory therapists, licensed vocational nurses, X-ray technicians, environmental and food services workers, among others.
Sutter Health Responds
A Sutter Health spokesperson stated, “We’re pleased to have reached an agreement that supports our frontline employees while maintaining our shared focus on patient care and safety. As Sutter Health continues to achieve high safety scores, expand access to care, add new services and bring more physicians to the communities we serve, we’ll continue investing in and supporting the teams who make that care possible.”
SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 120,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org
AB 692 will prohibit ‘stay-or-pay’ contracts that trap nurses and other workers in exploitative debt arrangements with employers
By California Nurses Association
California Nurses Association (CNA), the largest union of registered nurses in the state of California, applauds Governor Gavin Newsom for taking action to protect workers from employers’ use of predatory debt contracts and signing Assembly Bill 692 (A.B. 692) into law on Monday, Oct. 13. A.B. 692 prohibits employers from requiring workers to pay a debt, fee, or penalty if the workers wants to leave their job, expressly making these kinds of exploitative workplace debt arrangements unlawful.
“California is taking a proactive step forward to support the thousands of nurses and nearly one in 12 workers who are in exploitative stay-or-pay contracts,” said Sandy Reding, RNand CNA president. “We are grateful for Assemblymember Kalra championing this bill and to Governor Newsom for stepping up with the labor movement to stand up to Trump’s assaults on worker protections. California leads the rest of the country by signing this bill into law.”
A.B. 692 was authored by Assemblymember Ash Kalra (D-San Jose) and sponsored by CNA, as well as a broad coalition of co-sponsoring organizations, including the California Federation of Labor Unions, California Employment Lawyers Association, Protect Borrowers, and the American Economic Liberties Project.
“It has been an honor to work with CNA in abolishing exploitative stay-or-pay contracts and stopping employers from creating debt to trap and intimidate workers,” said Assemblymember Kalra. “I am grateful Governor Newsom signed A.B. 692, ensuring workers are not coerced into employment debt agreements and can be empowered to leave bad jobs.”
“Today, Governor Newsom signed an important bill to ban employer debt traps and protect nurses, actors, athletes and so many other workers. Employers use training repayment schemes to trap workers in jobs with low wages, unsafe conditions, and abusive managers,” said California Labor Federation President Lorena Gonzalez. “It doesn’t matter if you work in a hospital or play professional sports, no worker should have to pay an employer back if they leave a job. We are proud of California’s progress that will help workers level the playing field.”
A.B. 692 addresses the growing number of employers that are using debt as an exploitative tool to trap workers in jobs, often with low wages and substandard working conditions, and to bust unions. Sometimes called “stay-or-pay” contracts, employers coerce workers into predatory arrangements that require the worker to pay an alleged debt or other financial penalty to their employer if the worker leaves their job before a prescribed period of time–whether the worker is fired, laid off, or quits. With the threat of having to pay back a debt or fee to their employer, “stay-or-pay” contracts indenture workers to remain at a job and chills workers from seeking better wages or working conditions.
California Nurses Association/National Nurses United is the largest and fastest-growing union and professional association of registered nurses in the nation with more than 100,000 members in more than 200 facilities throughout California and more than 225,000 RNs nationwide.
For more than 4,700 frontline healthcare workers across Northern California, securing progress on staffing, pay, working conditions
By Jennifer Kelly, Media Relations, SEIU-United Healthcare Workers West (SEIU-UHW)
OAKLAND, CA – As of Saturday, Oct. 11, 2025, frontline healthcare workers at eight Sutter Health facilities across Northern California have reached a tentative contract agreement with Sutter executives, averting the strike workers had overwhelmingly authorized. The new agreement addresses critical issues around staffing and working conditions by ensuring fair pay and benefits for frontline healthcare workers, allowing them to continue serving patients without disruption. (See related article)
“This tentative agreement shows that when we stand united, we can win improvements that protect both healthcare workers and our patients,” said Dinora Garcia, a dietary clerk from Sutter Lakeside. “Reaching this agreement wasn’t easy but we stood together to advocate for worker and patient safety, improved staffing levels, and fair wages and benefits that reflect the vital work we do every day.”
The tentative contract agreement needs to be voted on and approved by the members before it is final. If approved, the agreement will provide 14 percent across-the-board raises for workers. The agreement also protects healthcare and retirement benefits for these frontline healthcare workers.
The tentative agreement averts a strike at eight Sutter Health facilities in Oakland, Santa Rosa, Roseville, Berkeley, Lakeport, Vallejo, Antioch, Castro Valley and San Francisco, where thousands of workers had been preparing to strike.
SEIU-UHW represents a variety of workers across Sutter Health, including nursing assistants, respiratory therapists, licensed vocational nurses, environmental services, food services, x-ray technicians, respiratory therapists and others. The ratification vote will be scheduled for later this month.
Sutter Health Issues Statement
According to a Sutter Health spokesperson, “Sutter Health and SEIU-UHW reached tentative agreements for new contracts on Saturday covering more than 4,400 employees at eight hospitals.
The parties have negotiated in good faith since July for an agreement that recognizes and rewards employees while supporting our ability to deliver safe, high-quality care. We believe the tentative agreements meet those goals.
SEIU-UHW will soon hold a ratification vote for its membership. We encourage all eligible employees to participate in the vote and support this fair contract offer.”
About SEIU-UHW
SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 120,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.
About Sutter Health
Sutter Health’s integrated, not-for-profit system of associated clinicians, employees and volunteers support more than 3 million patients in diverse communities across two dozen counties. Headquartered in Northern California, Sutter provides access to high quality, affordable care through its hospitals, medical foundations, ambulatory surgery centers, urgent and walk-in care centers, telehealth, home health and hospice services.
Workers demand public health department investigations into claims of unsafe staffing, unsanitary conditions, dangerous care practices
Fresnenius denies workers’ allegations, Satellite does not respond
By Renée Saldaña, SEIU, Press Secretary, SEUI – United Healthcare Workers West
CALIFORNIA – Dialysis healthcare workers in counties across California delivered complaints to local Departments of Public Health on Tuesday and Wednesday that detail alarming and persistent violations inside dialysis clinics operated by Satellite Healthcare and Fresenius Medical Care in Stockton, Santa Rosa, San Diego, Imperial Valley, Riverside, San Bernardino, Sacramento, and the Bay Area, including a location in Antioch.
The complaints, filed by members of SEIU–United Healthcare Workers West (SEIU-UHW), outline conditions that workers say create unsafe working conditions and put vulnerable dialysis patients at serious risk, including chronic understaffing, infection control failures, unsanitary facilities, and unsafe equipment.
“Dialysis patients deserve safe, quality care – but instead, we’re seeing clinics where workers are stretched so thin that even basic safety protocols can’t be followed,” said Mike Badilla, a patient care technician at Satellite Healthcare in Gilroy. “We’re speaking up because these conditions are unacceptable for workers and our patients. These companies know what the problems are. They’ve been warned before. But until they’re forced to change, patients will keep paying the price.”
The complaints detail a disturbing pattern of systemic issues across multiple facilities, including:
Unsafe staffing levels leaving workers responsible for more patients and tasks than can be safely managed, leading to skipped safety checks, improper infection control procedures, and missed treatments.
Equipment failures and unsafe environments such as broken Hoyer lifts requiring firefighters to move patients, leaking water treatment rooms, broken air conditioning systems, and debris left around treatment areas during renovations.
Infection control lapses including visible blood stains in patient areas, improper disinfection procedures, and insufficient time between treatments to safely clean equipment.
“Our clinics are understaffed, under-resourced, and run by executives more focused on profits than worker and patient safety,” said Bonnie Oconer, a patient care technician at Fresenius Medical Care in Riverside. “We’re calling on public health departments to investigate these conditions and hold these companies accountable.
Dialysis workers have been raising alarms for years about unsafe conditions in the dialysis industry. Despite past citations from state inspectors, similar safety failures continue, and caregivers say that without stronger enforcement and meaningful changes from employers, workers and patients will remain at risk.
SEIU-UHW represents more than 700 dialysis caregiversat Fresenius, Satellite Healthcare and U.S. Renal in various job classes, including registered nurses, patient care technicians, licensed vocational nurses, certified clinical hemodialysis technicians, dietitians, social workers, clinical administrative coordinators, and receptionists.
SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 120,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians, provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.
In response, Kirsten Stratton, Senior Manager for Media Relations, Global Communications of Fresenius Medical Care provided the following company statement:
“SEIU-UHW’s allegations are not supported by facts. Objective government quality metrics routinely demonstrate that our dialysis centers in California lead and outperform the rest of the industry.
The latest Centers for Medicare & Medicaid Services 5-star quality ratings showed that our California centers have a higher ratio of 4- and 5-star ratings than any other dialysis provider across the country. Our employee hiring and retention far outpace California and nationwide trends. From 2022 through 2024 in California, our average time to fill a position improved by 22%, open positions by 68%, and voluntary turnover from 22% to 10%.
As has been the case throughout this process, our focus will be on bargaining in good faith and providing high-quality, life-sustaining care.”
An effort to also reach Satellite Healthcare for comment was unsuccessful prior to publication time. Please check back later for any additional updates.
96% vote in favor of a strike, claim Sutter Health management refuses to bargain in good faith in order to fix working conditions and short staffing
“Sutter Health has been bargaining in good faith with SEIU–UHW since July and we remain committed to reaching a fair and sustainable agreement.” – Sutter Health
By Renée Saldaña, Press Secretary, SEUI – United Healthcare Workers West
OAKLAND, Calif. – Frontline healthcare workers from eight different Sutter Hospitals and Medical Centers across Northern California have voted to authorize a strike over unfair labor practices. The workers overwhelmingly approved the strike with a 96% vote in support, citing bad faith bargaining by Sutter executives. Workers have not yet chosen dates and will continue trying to bargain with Sutter executives at upcoming sessions on October 9 and 10.
In August and September, these same caregivers held a series of rolling pickets at the sites of the possible future strike, including a march and rally at Sutter Health’s Sacramento Medical Center that drew over 1,000 frontline healthcare workers calling for safer staffing, fair pay, and investment in underserved communities across the giant healthcare system.
“We don’t want to go on strike, but we feel like we have to,” said Nikki Moorer of Sutter Solano. “We need management to stop bargaining in bad faith and listen to us to fix working conditions and short staffing. Procedures get canceled, and patients are sent home because there aren’t enough staff to properly stock the equipment we need. That’s not care. That’s a crisis.”
Healthcare workers at Sutter Health facilities in Oakland, Santa Rosa, Roseville, Berkeley, Lakeport, Vallejo, Antioch, Castro Valley, and San Francisco say that despite their dedication to provide the best patient care, management refuses to invest in the staff who make that mission possible. Turnover has forced employees to take on multiple roles and work longer hours as experienced caregivers leave for higher-paying jobs. Staffing shortages are stretching the remaining workforce thin and putting patient care at risk. Despite this, Sutter executives refuse to listen to frontline healthcare workers to negotiate for a contract to help solve these problems.
At the same time, Sutter is paying its top executives millions each year, including Sutter Health CEO Warner Thomas, who earned over $11 million in 2023, while refusing to invest in staffing and patient care. The health system also plans to replace the aging Alta Bates Ashby campus with a smaller facility in Emeryville, leading to a loss of services in the communities that need them most.
The strike votes apply to a variety of job classes, including nursing assistants, respiratory therapists, licensed vocational nurses, environmental services, cooks, technicians, and more.
Sutter Health Responds
Sutter Health responded by issuing the following statement: “Sutter Health has been bargaining in good faith with SEIU–UHW since July and we remain committed to reaching a fair and sustainable agreement.
“It’s common for unions to take a strike authorization vote as part of the bargaining process, but SEIU–UHW has not called a strike.
“We look forward to being at the table next week to continue working toward a resolution that’s best for our employees, our patients and the communities we serve.”
Sutter Health’s spokesperson also provided the following link to additional information on the 2025 SEIU-UHW and Sutter Health Labor Negotiations: Get the Facts | Vitals.
About SEIU-UHW
SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 120,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.
UPDATE: The strike votes took place and would impact three clinics in Contra Costa County: Fresenius West Antioch, DaVita Concord and Fresenius Brentwood.
Margin of 97% in favor as Fresenius, DaVita, U.S. Renal and Satellite violate workers’ rights instead of improving working conditions and care for patients receiving life-saving treatments
Strike votes come as more Fresenius clinic workers join SEIU-UHW amid growing momentum for industry-wide change
By Renée Saldaña, Press Secretary, SEUI – United Healthcare Workers West
OAKLAND, Calif. — Dialysis workers across California are preparing for unprecedented strikes aimed at addressing unfair labor practices over companies’ illegal union-busting tactics. Workers are also concerned with unsafe working conditions. The same day the strike vote results were announced, frontline workers at Fresenius Kidney Care West March in Stockton voted to unite with SEIU-United Healthcare Workers West (SEIU-UHW), marking another victory in the ongoing historic wave of unionization at dialysis clinics across the state.
The strikes, which could involve approximately 900 frontline healthcare workers at more than 38 clinics statewide, represent a critical turning point in the fight to hold dialysis corporations accountable for prioritizing profits at the expense of patient care.
Dialysis caregivers are calling for executives at DaVita, Fresenius, Satellite Healthcare, and U.S. Renal Care to bargain with them in good faith over solutions to chronic staffing shortages, patient care concerns, and their demands for fair wages and to stop employing union-busting tactics in response to workers exercising their right to form their unions. They say this action is necessary to stop unfair labor practices and secure safer conditions for both workers and patients. The workers also want their employers to stop retaliating against caregivers who advocate for their rights and better patient care.
“After years of unsafe staffing, substandard working conditions, and anti-union behavior by management, dialysis workers have had enough,” said Easen PeBenito, a certified clinical hemodialysis technician at Satellite Healthcare Blossom Valley in San Jose. “We’re taking this stand not just for ourselves, but for the patients whose lives depend on safe and compassionate care. Dialysis executives have ignored our concerns and violated our rights for far too long, and our strike is a last resort to stop Satellite’s illegal behavior and demand better for everyone.”
For years, healthcare workers at DaVita, Fresenius, Satellite Healthcare, and U.S. Renal Care have raised alarms about understaffing, high turnover rates, low-wages, and unsafe working conditions at dialysis clinics, where patients with critical kidney failure receive life-sustaining dialysis treatments multiple times a week. Caregivers at dialysis clinics across California, from Sacramento to San Diego, have been organizing to improve patient care, working conditions, and job standards.
The historic unionization wave amongst dialysis workers gained even more momentum the same day the strike vote was announced, as workers at Fresenius West March in Stockton voted to join SEIU-UHW despite management’s anti-union campaign which included captive audience meetings, and one-on-one meetings conducted by company executives and a union busting consultant.
“We voted to unionize so we can take better care of our patients and our families,” said Arnold Ballesteros, a patient care technician at Fresenius West March in Stockton. “We’re so short-staffed that we’re constantly rushing to give our patients the attention they deserve. Many of us are working multiple jobs just to get by because our wages haven’t kept up with the cost of living, and we’re paid far less than other healthcare workers. This is why despite management’s anti-union campaign and unfair labor practices we voted overwhelmingly to join SEIU-UHW. By joining the union, we’re gaining the power to fight for safer staffing, better pay, and the ability to provide the best care possible for our patients. Our strike is a message to our employer to stop committing unfair labor practices.”
As dialysis workers prepare to strike, the industry faces growing scrutiny from lawmakers and patient advocates, who are calling for reforms to improve transparency, safety, and accountability at dialysis clinics.
UPDATE: The strike votes took place and would impact three clinics in Contra Costa County: Fresenius West Antioch, DaVita Concord and Fresenius Brentwood.
SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 100,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians, provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.
Instead of passing bill she carried – See UPDATE with details of “Deal Framework”
CA journalists “oppose this disastrous deal”
“The future of journalism should not be decided in backroom deals…Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry.” – Media Guild of the West
Senator Glazer who has his own bill on the matter opposes deal says it, “seriously undercuts our work toward a long term solution to rescue independent journalism” and doesn’t include Meta (Facebook, Instagram) and Amazon
By Allen D. Payton
Assemblymember Buffy Wicks (D-AD15, Oakland)
SACRAMENTO – On Wednesday, August 21, 2024, Assemblymember Buffy Wicks (D-AD15, Oakland) announced the establishment of a first-in-the-nation partnership with the State, news publishers, major tech companies and philanthropy, unveiling a pair of multi-year initiatives to provide ongoing financial support to newsrooms across California and launch a National AI Accelerator.
Together, these new partnerships will provide nearly $250 million in public and private funding over the next five years, with the majority of funding going to newsrooms. The goal is to front-load $100 million in the first year to kick-start the efforts. The total investment could increase over the next several years if additional funding from private or state sources becomes available.
“This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians,” said Governor Gavin Newsom. “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy.”
Assemblymember Wicks, who represents portions of Western Contra Costa County, authored AB 886 to help ensure the sustainability of local journalism, as news outlets across the country are downsizing and closing at alarming rates. A Northwestern University study published last year found an average of two and a half newspapers in the United States close every week, and that our nation has lost two-thirds of its newspaper journalists since 2005. California has lost more than 100 newspapers in the last decade alone.
The new suite of initiatives includes multi-faceted support for publishers across California to address challenges that have impacted the depth and breadth of news coverage in the state. They will help ensure the sustainability of existing and new online publications – with an emphasis on small, local outlets and community-facing journalism.
“As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy,” saidWicks. “This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work. This is just the beginning. I remain committed to finding even more ways to support journalism in our state for years to come.”
California news publishers will be the beneficiaries of a News Transformation Fund, to be administered by the UC Berkeley School of Journalism, providing financial resources that preserve and expand California-based journalism. The funding will include contributions from technology platforms and the State of California, supporting innovative new investments that promote local journalism. The funding will support California-based state and local news organizations, particularly those serving California local news deserts, underserved and underrepresented communities, and outlets that prioritize California coverage.
“The University of California is proud to partner with Governor Newsom and legislative leaders to bolster the critical work of local news organizations and journalists in California,” said UC President Michael V. Drake, M.D. “Californians depend on robust local and diverse news organizations to stay informed about their communities, and the University and specifically the UC Berkeley School of Journalism stand ready to support this endeavor.”
Funding for the initiative would be complemented by direct support from the State, helping news organizations keep and grow newsroom staff and offsetting the costs of producing local news and information.
“A vibrant press is crucial for strong communities and a healthy democracy. This is a first step toward what we hope will become a comprehensive program to sustain local news in the long term, and we will push to see it grow in future years,” saidCalifornia News Publishers Association CEO Chuck Champion and Board Chair Julie Makinen. “We will work with the state and tech companies to make the most of this initiative. We’re grateful to Assemblymember Wicks for her passionate advocacy on behalf of our 700-plus member newsrooms.”
Partners in this initiative also reiterated their strong commitment to strengthening newsroom and ownership diversity for ethnic and underserved communities. The Governor also announced his support for AB 1511 (Santiago), which aims to increase the state’s ongoing commitment to place official marketing, advertising and/or outreach advertising with local and underrepresented media outlets.
“Ethnic and community media outlets in California have a long history of serving as trusted messengers of culturally responsive news to historically underrepresented and underserved communities,” said Assemblymember Miguel Santiago. “These initiatives ensure that California is embracing private sector innovation while developing partnerships with and seeding investments from the public sector to empower local publishers and journalists that are vital to a healthy, thriving democracy.”
Additionally, researchers and businesses will have access to new resources to explore the use of AI to tackle some of the most complex challenges facing society, and strengthen the workforce through a new National AI Innovation Accelerator. This will be administered in collaboration with a private nonprofit, and will provide organizations across industries and communities — from journalism, to the environment, to racial equity and beyond — with financial resources and other support to experiment with AI to assist them in their work. The AI accelerator will empower organizations with the new technology, and complement the work of the Journalism Fund by creating new tools to help journalists access and analyze public information.
“We appreciate the thoughtful leadership of Governor Newsom, Assemblymember Wicks, Chair Umberg, and Senator Glazer on these issues,” said Kent Walker, President of Global Affairs and Chief Legal Officer for Alphabet (Google’s parent company). “California lawmakers have worked with the tech and news sectors to develop a collaborative framework to accelerate AI innovation and support local and national businesses and non-profit organizations. This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy.”
“A strong press is a key pillar of democracy, and we’re proud to be part of this partnership to utilize AI in support of local journalism across California,” said Jason Kwon, Chief Strategy Officer for OpenAI. “This initiative builds on our longstanding work to help newsrooms and journalists around the world leverage AI to improve workflows, better connect users to quality content, and help news organizations shape the future of this emerging technology.”
Work will begin immediately to stand up both initiatives, which will go live in 2025. Included below is a range of quotes from additional supporters.
What others are saying:
“The work of local independent publishers is essential to a well-functioning democracy, and this new public-private partnership provides immediate and needed relief. Lawmakers should be proud of this program, which builds on California’s innovative Local News Fellowship with millions of new dollars in a way that prioritizes small publishers and those serving underrepresented groups.” – Chris Krewson, Executive Director of Local Independent Online News (LION) Publishers, a national nonprofit with 76 of its 600 publisher members in California
“The new public-private partnership provides a pioneering, ambitious program that will offer significant help to local newsrooms that give Californians the information they need to participate in a healthy democracy. It’s encouraging that lawmakers and tech platforms found a way to work together to forge an innovative solution that can be a model for other states.” – Lance Knobel, CEO of Cityside Journalism Initiative, the nonprofit behind Richmondside, Oaklandside and Berkeleyside
“California is leading the way with this first-in-the-nation investment to protect the press and sustain quality journalism. This fund will help news outlets and journalists adapt to a changing landscape with new tools and funding to embrace emerging technologies. This is especially helpful for ethnic and community media which is comprised largely of under-resourced family businesses whose strongest connections are to their community.” – Regina Wilson, Executive Director, California Black Media
“California is home to the largest concentration of multilingual news outlets serving immigrant and ethnic communities in the US. This breakthrough public private partnership to support local journalism brings welcome recognition of the ethnic media sector’s indispensable role in connecting these diverse communities to each other and to the wider public realm.” – Sandy Close, Director of Ethnic Media Services (EMS), a California-based nonprofit which works with 2000 ethnic news outlets nationwide, including over 300 in California
“It represents an equity-media model for the nation,” added Julian Do, EMS Co-Director
“Protecting and rebuilding California’s robust media ecosystem and ensuring it serves immigrants, Latinos and communities of color equally requires an important role for philanthropy, our tech and private sector, and yes, California’s State Government. We see this historic agreement as just the first major step where the State of California can lead the way in building a sustainable media ecosystem for the most diverse state in the Union.” – Arturo Carmona, President of the Latino Media Collaborative
“This is a win for all Californians. Disinformation flourishes when quality journalism disappears. This critical funding will help local publishers survive and keep their communities informed and engaged.” – Neil Chase, CEO of CalMatters and former editor of The Mercury News and East Bay Times
“The revival of a strong, independent community-minded local press is vital for California. All things considered, this agreement both injects new money into doing that and helps spur the innovation, tech and otherwise, required at this moment. As a companion to the California Local News Fellowship, it’s another brick in the rebuilding of California journalism.” – Ken Doctor, Newsonomics news analyst and Lookout Local founder and CEO
“Supporting local news and journalism is vital to enabling a fully informed and engaged community. We are very pleased to see California as a leader in building this public-private partnership that will substantially impact local journalism and essential news coverage in communities throughout California. This vital funding will support our local news and will enable an expansion of our initiative to add to the depth of our bilingual coverage and journalists in Napa Valley – where 40% of the population is Latino.” – Marc Hand, CEO and Board Chair of Highway 29 Media, a publisher of newspapers serving communities in Napa Valley
California Journalists’ Guild Opposes Deal, Calls it a “Shakedown”
In addition, the Media Guild of the West, which represents journalists and had supported Wicks’ bill, issued a statement on Wednesday opposing the deal entitled, “California’s journalists do not consent to this shakedown.”
The guild’s representatives and signatories to the statement (see below) wrote, “This afternoon, Google, California Assemblymember Buffy Wicks, California Governor Gavin Newsom and many of California’s publishing lobbies announced ‘a first-in-the-nation partnership with the State, news publishers, major tech companies and philanthropy, unveiling a pair of multi-year initiatives to provide ongoing financial support to newsrooms across California and launch a National AI Accelerator.’
After two years of advocacy for strong antimonopoly action to start turning around the decline of local newsrooms, we are left almost without words. The publishers who claim to represent our industry are celebrating an opaque deal involving taxpayer funds, a vague AI accelerator project that could very well destroy journalism jobs, and minimal financial commitments from Google to return the wealth this monopoly has stolen from our newsrooms.
Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry. Moments ago, the following opposition letter was filed with the California legislature:
We represent journalists and news workers who provide essential news for millions of Californians in print, digital, broadcast, commercial and nonprofit newsrooms.
The future of journalism should not be decided in backroom deals. The Legislature embarked on an effort to regulate monopolies and failed terribly. Now we question whether the state has done more harm than good.
California’s journalists and news workers OPPOSE this disastrous deal with Google and condemn the news executives who consented to it in our names.
Signed,
Matt Pearce, President, Media Guild of the West, The NewsGuild-CWA Local 39213 Jon Schleuss, President, The NewsGuild-CWA Annie Sciacca, President, Pacific Media Workers Guild, The NewsGuild-CWA Local 39521 Carrie Biggs-Adams, President, NABET-CWA Local 51 Javad Ayala, President, NABET-CWA Local 53 Kevin Gallo, Regional Vice President 5, NABET-CWA Frank Arce, Vice President, Communications Workers of America District 9
Glazer Also Opposes Agreement, Calls it “Inadequate”
State Senator Steve Glazer (D-SD7, Orinda).
State Senator Steve Glazer (D-SD7, Orinda), who represents most of Contra Costa County and has his own bill on the matter, SB911, also does not support the deal and on Wednesday issued the following “Statement on Wicks-Google Agreement”:
“Despite the good intentions of the parties involved, this proposal does not provide sufficient resources to bring independent news gathering in California out of its death spiral.
Google’s offer is completely inadequate and massively short of matching their settlement agreement in Canada, in supporting on-the-ground local news reporting.
Democracies live and die based on the free exchange of information and oversight between government and its people. Autocracies and dictatorships thrive when that information is constrained or manipulated.
The hollowing out of independent news gathering and the monopoly power of these digital platforms is an existential threat to our democratic republic.
This agreement, unfortunately, seriously undercuts our work toward a long term solution to rescue independent journalism
There is a stark absence in this announcement of any support for journalism from Meta (parent company of Facebook and Instagram) and Amazon. These platforms have captured the intimate data from Californians without paying for it. Their use of that data in advertising is the harm to news outlets that this agreement should mitigate.”
Questions for Wicks About the Agreement and Initiatives Go Unanswered
Questions were emailed Wednesday night to Wicks’ Director of Communications, Erin Ivie, asking, “Do you email out press releases to media that cover her district? Was there a press conference held announcing the agreement?”
Other local media publishers in Contra Costa County didn’t receive the press release about the agreement nor an invitation to any press conference at which it was announced, either.
She was also asked the following:
“Why didn’t she reach out to the local media that cover her district for our input like Congressman Mark DeSaulnier did for his legislation?
Which news publishers, major tech companies and philanthropy are party to the agreement?
Can you ease provide copies of the two initiatives mentioned in the press release or the link to where they can be found?
What are the definitions of ‘newsroom’, ‘local journalist’ and ‘local news outlets’ mentioned in the press release, including in a quote by the Assemblywoman?
Which newsrooms will qualify for the funds? Who will determine which newsrooms will receive the funds and how much they will receive?
Will the funds be provided directly from the tech companies and philanthropy to the newsrooms, or will they be funneled through a state government agency? Will there be an application process and to whom will the applications be submitted?
Who will be working on both initiatives? How does a local news publisher get involved in the process?”
Finally, Ivie was asked, “Won’t the allocation of taxpayer funds included in the agreement still require legislation to be passed? If so, what will be the process? Will the Assemblywoman continue to pursue passage of AB866? If so, will it be amended to include the elements of the agreement?
UPDATE: Wicks’ Staff Provides Details of Deal
In response, Ivie provided the “Deal Framework, Measures to support democracy, journalism and AI innovation” (see below). In addition, she provided answers to the Herald’s questions:
“Eligible for the funding are nonprofit and for-profit news organizations who have been around for at least two years. The funding is awarded by headcount, overseen by a diverse board (outlined further down).
The one exception is commercial broadcasters, who were carved out of the agreement because they continue to generate healthy profits from advertising dollars.
The funds will be distributed by the UC Berkeley School of Journalism, by an approved claims administrator who typically handles complex distributions of class action settlements. Details of the application process are forthcoming, but in the meantime, anyone interested can contact our office to get on a list to receive those details.
The state is currently committed to providing a minimum of $70M over 5 years, and that commitment is limited to the journalism fund only. Google has committed to $110M minimum over the same time frame, plus $62.5M for their AI accelerator.
That means that taxpayer funds could be used to support the journalism fund, but not the work of the AI accelerator. It will not require legislation to be passed, but it will require a budget allocation (in January), which the Governor has already committed to.
Our office, Google, the UC Berkeley School of Journalism, plus a seven-member governing board. That board will consist of two CNPA members, one member from Ethnic Media Services, one from Local Independent Online News (LION), one from Latino Media Collaborative, one from California Black Media, and one from Media Guild of the West.
Any local news publisher who wants to get involved can email our office and be brought into the fold. If you’re interested, please email our Legislative Director Zak Castillo-Krings at zak.castillo-krings@asm.ca.gov.
The agreement was made in lieu of AB 886, and the bill will no longer move forward.”
Deal Framework
Measures to support democracy, journalism and AI innovation
1. Summary: Creation of first-in-the-nation partnerships that will provide nearly $250 million in public and private funding over the next five years, with the majority of going to support newsrooms. The goal is to front-load $100 million in the first year to kickstart the efforts. Total investment could increase over the next several years if additional funding from private or state sources becomes available.
2. State Contribution: 30mm in year one. 10mm in each of the next four years (years 2-5). All money will be contributed to a new fund established at UC Berkeley School for Journalism.
3. Google Commitment to Journalism, up to 30mm a year, as follows:
a. Year one:
$15mm to the Journalism Fund
$5mm to AI fund accelerator
$10mm in funding for existing journalism programs
b. Years 2-5: Google continues its contribution to Journalism Fund at 10mm minimum. Google maintains 10mm in funding for existing journalism programs
4. National AI Accelerator
a. Managed by as-yet-to-be finalized non-profit organization, under terms to be
defined by funders
b. Google commitment of additional 10mm to Accelerator
c. Google commitment of additional 2.5mm to fund AI research
d. Additional contributions from other tech companies
5. UC School of Journalism non-profit public charity
a. Administration costs are not to exceed a customary overhead
b. Purpose is to bolster UC’s efforts to support and catalyze local news
throughout the state
c. Overseen by a 7-member governing board:
i. CNPA member
ii. CNPA member
iii. Ethnic Media Services
iv. Local Independent Online News
v. Latino Media Collaborative
vi. California Black Media
vii. Media Guild of the West
d. Funds allocated by board to be distributed by claims administrator
e. 12% of funding reserved for locally focused publications and publications targeting underrepresented groups
f. The function of the board will be to validate the distribution formula based on the number of journalists per publication. Funds to be distributed to eligible organizations by dividing the number of eligible journalism positions or
freelancers of each organization by the total number of overall eligible positions multiplied by the total eligible amount in the fund consistent with the current language of AB886. The board will have no other discretion relative o the distribution of funds.
g. The definition of a journalist does not include broadcasters
6. Additional State Support:
a. California will work with its departments on plans to prioritize state government advertising in local publications and publications in underserved markets, with the goal of redirecting millions in advertising dollars.
Erin Ivie, Director of Communications, Office of Assemblymember Buffy Wicks and Steven Harmon, Communications Director for the Office of State Senator Steve Glazer contributed to this report.
Senator Glazer’s request leads to findings of workers cheated out of $63.9 million in past wages
Calls it a failure to act on behalf of workers
Report claims inadequate staffing, poor oversight have weakened protections for workers
SACRAMENTO – California Labor Commissioners have stood idly by as a massive backlog in wage theft cases piled up worth $63.9 million in lost wages to workers as its enforcement unit failed to enforce and collect wages in 76 percent of cases in which employers were found to owe wages, according to a report released Wednesday by Grant Parks, the California State Auditor.
The scathing audit came as a result of a March 2023 request through the Joint Legislative Audit Committee by Senator Steve Glazer, D-Contra Costa, and Assemblyman David Alvarez, D-San Diego. It was based on news reports about the lack of wage theft enforcement.
Parks reported his findings to the Governor, President pro Tempore of the Senate and Speaker of the Assembly about the “Department of Industrial Relations’ Division of Labor Standards Enforcement, also known as the Labor Commissioner’s Office (LCO).” Lilia García-Brower is the current state Labor Commissioner and was appointed to the position by Governor Newsom in July 2019. Neither her name or photo appears on the website for the Labor Commissioner’s Office. Ironically, according to the agency’s website, “The mission of the LCO is to ensure a just day’s pay in every workplace in the State and to promote economic justice through robust enforcement of labor laws. By combating wage theft, protecting workers from retaliation, and educating the public, we put earned wages into workers’ pockets and help level the playing field for law-abiding employers.”
The audit “reviewed the backlog of wage claims submitted by workers from fiscal years 2017–18 through 2022–23, and determined that the LCO is not providing timely adjudication of wage claims for workers primarily because of insufficient staffing to process those claims.”
Furthermore, the state Auditor reported, “In addition to its delays in processing wage claims, the LCO has not been successful in collecting judgments from employers. A possible factor contributing to its low collection rate is that the Enforcement Unit does not consistently use all of the methods available to it for collecting payments owed to workers.”
Senator Glazer released this statement on the audit’s findings:
“The California State Auditor’s report makes clear that our State Labor Commissioner is a toothless enforcer of our wage theft laws. This deeply troubling assessment exposes a system that has fundamentally failed the workers it is supposed to protect. According to the auditor, there is a backlog of 47,000 claims registered on June 30, 2023. This is a state embarrassment and a stain on the department that workers depend on for justice.
The report also highlights an alarming increase in the average number of days to resolve claims, which has skyrocketed from 420 days in 2017/18 to an astounding 890 days in 2022/23. This drastic decline in efficiency is not just a statistic; it represents thousands of workers enduring prolonged injustice and financial hardship.
This lack of enforcement emboldens companies to exploit workers, knowing they can likely escape any real consequences, thus perpetuating and increasing further abuse. These findings paint a grim picture of an agency overwhelmed and ineffective, leaving workers vulnerable and without recourse. Immediate and decisive action to restore integrity and effectiveness to the Labor Commissioner’s office is needed. The workers of California deserve nothing less than a robust system that ensures timely and fair resolution of wage theft claims.”
