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Collective Bargaining Agreement

ProcessSubmission TimelineSubmission ProcessGrievance Meeting ScheduleEmployer Response Timeline
Optional Informal DiscussionAs soon as possible.Verbal or written discussion with immediate supervisor or another Employer representative.As soon as possible.Verbal response to the grievant or Union representative within 15 calendar days of the informal discussion.
Step 1Within 30 calendar days of when the issue occurred (10 calendar days for terminations) or when the employee learned about it or responded to the optional informal discussion.Written (often via email) grievance issued to the facility administrator.Step 1 grievance meeting must occur with the administrator within 15 calendar days of the Employer’s receipt of the written grievance.Written response to the Union and grievant within 15 calendar days of the Step 1 grievance meeting.
Step 2Within 15 calendar days of receiving the Employer’s response (or lack of response) to move a grievance from Step 1 to Step 2.Written (often via email) notice of Step 2 escalation to HR Director.A step 2 grievance meeting must occur with HR Director within 15 calendar days of the Employer’s receipt of the Step 2 notification.Written response to the Union and grievant within 15 calendar days of the informal discussion.
Optional MediationThe Union has 15 calendar days file for optional mediation.Union notifies FMCS and the HR Director in writingAs soon as possible. Does not interfere with arbitration filing or scheduling dates.
ArbitrationThe Union has 15 calendar days to file a step 2 grievance from the Employer’s response (or lack thereof) to move a step 2 grievance to arbitration.Union notifies Employer’s HR Director in writing and notifies FMCSWithin 60 days of the arbitrator’s selection, or as soon as the arbitrator’s schedule allows.

ARTICLE 22 – DIGNITY & RESPECT

In the interest of furthering collaborative relations and maintaining the highest quality of care, the Employer agrees that all Employees shall be treated with dignity and respect.

In the interest of furthering collaborative relations and maintaining the highest quality of care, the Union-represented employees agree that all residents, residents’ families, Union and non-Union staff, including managers, department heads and owners shall be treated with the same dignity and respect in which they expect to be treated.

ARTICLE 23 – SEPARABILITY

If any part of this Agreement is against any current laws or laws passed in the future, that part of the contract shall be superseded, but all other parts of the Agreement shall remain in effect.

ARTICLE 24 – LABOR-MANAGEMENT COMMITTEE

24.1 Statewide Labor Management Committee. The Parties will establish a Statewide Labor Management Committee (“SLMC”) within sixty (60) days of this Agreement’s effective date.

• The Employer, its employees, and the Union understand and agree that each aspires to provide high- quality healthcare. The Employer and employees must be committed to serving the facility’s residents by delivering the highest quality of care possible. The Parties agree and understand that high-quality resident care can be achieved if they discuss and address patient care, safety, and workplace issues together.

• The purpose of the SLMC is to evaluate the quality of services provided to residents, the quality of the working environment to retain staff by reducing turnover, staffing, and workload issues, and make recommendations for such topics.

• The Parties will primarily task the SLMC with the following: Scheduling quarterly statewide meetings to improve communication; Monitoring the proper application of facility policies, facility procedures; and this Agreement; Problem-solving strategies to improve resident care; and Addressing public policy concerns that affect nursing home operations.

• The Employer or the Union may schedule the SLMC. The Employer will pay the employees for participating in the meeting, but no more than two (2) hours quarterly.

• The SLMC will have an equal number of supervisors and employees who are bargaining-unit members.

• SLMC meeting discussion topics will include but are not limited to the following criteria and ideas identified by union members as critical to addressing the facility’s performance regardingstaffing, turnover, retention, and resident care:

• The SLMC shall not engage in negotiations, nor shall the SLMC consider matters properly the subject of a grievance. The merits of individual disciplines will not be discussed at SLMC meetings but shall instead be referred to the grievance process.

• If the SLMC cannot resolve an issue, the parties may mutually agree to move to Mediation of the grievance and arbitration procedure. Mediation will be the final step.

24.2 Facility Labor Management Committee. The Employer recognizes the value of communication and input from its employees. Therefore, to nurture and encourage this communication, a Facility- specific Labor-Management Committee “FLMC”) shall be formed to discuss issues of concern and importance. Each Party may submit items for discussion at a FLMC. The Employer and the Union shall each designate their FLMC members, and the FLMC membership may vary from meeting to meeting based on the agenda items or other reasons. The FLMC will not exceed three (3) bargaining unit members and three (3) management representatives. The FLMC members shall be paid for the time of the meeting. Other bargaining unit employees may voluntarily attend on unpaid time.

Purpose: The FLMC aims to identify, discuss, and address issues surrounding the quality of resident care and employee safety constructively. The FLMC shall monitor the quality of resident services and make recommendations to improve such services in staffing and workload issues, resident care indices (e.g., falls, bedsores, wound care), and other matters directly bearing on the quality of care received by the residents. The Parties intend that the FLMC has been established to receive the employees’ input only and is not intended to mean or imply that these employees have any management rights about patient care issues. The Employer maintains complete control in this regard. The Employer shall implement those FLMC recommendations that are unanimously agreed upon by the FLMC members when any such advice is consistent with the terms of this Agreement and the Employer’s policies.

Meeting: The FLMC shall meet quarterly, or more frequently as desired by the Parties, on a date mutually agreed to by the Facility’s Administrator and the designated Union representative unless mutually agreed otherwise. Each facility labor management committee will choose a date to hold the LMC each month. The Agenda will be shared via email 7 calendar days prior to the LMC. SEIU staff do not have to be present and will encourage CBA members to meet regardless if they can be present or not. Minutes will be recorded by mutually agreed upon designated person, if there are no volunteers, the Administrator or designee will ensure minutes are recorded.

The FLMC can meet regardless of whether a Union representative is present. It is strongly encouraged for a Union steward to be in attendance at every FLMC Meeting. No less than five (5) calendar days before the scheduled meeting, the Employer and the Union representative shall provide each other with their proposed agenda items to be discussed at the meeting. Meetings shall be held at the facility and scheduled to last one (1) hour, but in no event shall they last for more than two (2) hours unless the parties mutually extend the meeting. Employee committee members shall be paid for their attendance at their straight-time hourly rate. Topics for discussion at the FLMC may include, but are not limited to:

• The acuity and individual care needs of the Facility’s residents

• The latest results from the CMS-required Facility Assessment

• Quality and safety data relevant to the Facility’s staffing levels

• Employee concerns about being assigned more residents than they can meet the service needs of, if any

• The availability of facility supplies used for resident care needs (e.g., items used for personal care needs (ADLs), over-the-counter medications, etc.)

• Training needs

• Staffing levels

• Staff recognition

• Staff morale

• Facility policies

• Scheduling

• The Facility’s CMS “5 Star” Quality Rating and strategies to improve the rating • The Facility’s regulatory compliance results and strategies to improve such results • The Facility’s CMS Quality Measures trend for the past four quarters (e.g., ADL Decline, Long Stay High-Risk Pressure Ulcer, Weight loss, Restraints, Injurious Falls, etc.)

• Opportunity for the Parties to cooperate to improve the quality of resident care for patients being discharged from an acute hospital and joint outreach to local acute hospitals to educate and inform them of how this nursing home can become their provider of choice • Opportunities for employees to promote high-quality customer service while working in the facility.

24.3 No Authority to Change CBA. The SLMC and the FLMC will not have any authority to bargain, modify, or reach an agreement over any terms or conditions of employment. The SLMCE and the FLMC will not have any ability to change any term of this Agreement. Yet, the SLMC may recommend that the Parties mutually amend this Agreement as unanimously agreed by each SLMC member and as allowed by this CBA. It is understood and agreed that the SLMC and FLMC deliberations and discussions shall remain confidential among the parties. Nothing said during or as part of the FLMC related to patient care shall be disclosed to any outside party. The parties agree to comply with HIPAA as amended. Under no circumstances shall the SLMC or FLMC members be required to testify concerning the operation of the SLMC or FLMC, topics discussed, positions advocated, or recommendations made.

24.4 Enforcement. This Article shall not be subject to the grievance and arbitration procedure of the Agreement except that either party may grieve or arbitrate any failure by the other party to fulfill any procedural obligation that arises under this Article.

ARTICLE 25 – SAFETY & TRAINING

25.1 Safety Rules and Regulations. The Employer shall carry out its obligations as set forth in applicable federal, state and local laws and regulations to provide a safe and healthy work environment for its Bargaining Unit Employees. The Employer shall be responsible for enforcement of such rules and regulations and of its own safety rules and regulations.

25.2 Equipment, Materials and Training. The Employer shall provide the necessary equipment, materials and training to Bargaining Unit Employees in order to provide a safe workplace.

25.3 Infectious Disease. The Employer shall provide Bargaining Unit Employees with information about residents’ infectious diseases provided that such information does not compromise residents’ rights to confidentiality.

25.4 Employer Paid Vaccines and Tests. The Employer shall make hepatitis B vaccines, flu vaccines, initial TB tests, and initial chest x-rays (if an employee’s TB test is positive) available to Bargaining Unit Employees at no cost to the employee. The Employer will pay for lice and scabies tests and treatment in the event of a documented case at the facility.

25.5 Safe Equipment and Safe Conditions. No Bargaining Unit Employee shall be required to work on, with or about an unsafe piece of equipment or under an unsafe condition. This language may only be invoked after a Bargaining Unit Employee discusses the matter with his or her supervisor and, if disagreement still exists, with the Administrator, or in their absence, their designee.

25.6 Training for New Employees. All new Bargaining Unit Employees performing direct care on residents and existing Bargaining Unit Employees promoted to any position performing direct care on residents shall receive up to five (5) days paid “hands on” training as appropriate upon hire (i.e., based on experience and extent of subject matter expertise). This training shall be completed prior to the Employee being officially placed on the schedule.

25.7 Additional Training. The Union and the Employer will work cooperatively to establish additional training program(s) on the subject matter of more effectively caring for residents with behavioral and/or dementia concerns, through either the Oregon Care Partners or any other potential source of training funds. Such training held at the facility will be made available to appropriate employees, as determined by the Employer, and such employee(s) shall be paid for all Employer- authorized time spent in such training.

ARTICLE 26 – NO STRIKE/NO LOCKOUT

26.1 During the term of this Agreement or any written extension thereof, the Union shall not call nor authorize any strike against the Employer at the establishment covered by this Agreement, and the Employer will not lock out any employee. For the purpose of this Article, a walk-out, sit-in, sick-out, slow-down, sympathy strike, or other work stoppage will be considered a strike.

26.2 If an employee or employees engage in any strike, and the Employer notifies the Union of such action, a representative of the Union shall, as promptly as possible, instruct the employees to cease such action and promptly return to their jobs.

26.3 Employees who participate in a strike in violation of this Article will be subject to discipline up to and potentially including termination.

26.4 In the event of a violation of the no-strike provision, the Union will:

1. Publicly disavow such action by the employees;

2. Notify the employees of its disapproval of such action and instruct such employees to cease such action and return to work immediately; and

3. Post notices on Union bulletin boards advising that it disapproves of such action and instructing employees to return to work immediately.

26.5 The Union will not conduct informational picketing for the duration of this Agreement.

ARTICLE 27- SUCCESSORSHIP

In the event this facility is to be sold, assigned, leased or transferred, the Employer shall notify the Union in writing, at least sixty (60) calendar days prior to such transaction, subject to SEC and other applicable laws and regulations. Such notice shall include the name and address of the prospective new owner, assignee, lessee or transferee. The Employer shall meet with representatives of the Union to bargain over the effects of the transaction on bargaining unit employees, not later than forty- five (45) days prior to any transaction. No confidential business information shall be disclosed to Union at any time unless the Union agrees to suitable arrangements for protecting the confidentiality and use of such information. The timing of when the pending sale will be disclosed to Union- represented employees will be negotiated between the Union, the Employer and the potential new Employer.

When the Employer’s notification to Union requirement is triggered above per a qualified transaction, the Employer shall also notify the prospective new owner, assignee, lessee, or transferee Successor in writing of the existence of this Labor Agreement and provide a copy.

The Employer agrees that, in the event that it decides to sell the facility covered under this Agreement, which shall continue to be operated as a skilled nursing facility, the Employer shall require as a condition of any sale that the successor operator recognize the Union as the exclusive collective bargaining agent for currently-represented employees at the facility; and further as condition of sale, the buyer shall be obligated to continue the terms and conditions of the collective bargaining agreement for a period of one hundred and twenty (120) days, in which time the successor employer has the option to notify the Union it wishes to negotiate the terms and conditions of employment during that period. If the successor employer does not exercise that option then the Collective Bargaining Agreement shall remain intact through its full term.

a. Nothing in this provision shall require the successor employer to offer the same medical, dental or vision insurance plans, or the same retirement or 401k, or the same group life or disability plans. The successor employer may implement its own medical, dental or vision plans, retirement or 401k plan, disability plan, and group life insurance plan and may also implement its own time off plan.

b. With regard to the medical insurance benefits, the successor employer shall offer a plan that is similar on the whole to the Employer offered plan.

c. Nothing in this provision shall require the successor employer to continue in effect the contractual vacation and sick leave provisions provided that the successor employer offers a comparable amount of time off as the total time off amounts for vacation and sick leave contained in this Agreement.

d. In the event that the Employer is unable to find a purchaser that is willing to purchase the facility under the terms and conditions specified herein and the Employer is faced with closing the facility, the Employer shall notify the Union of its intent to close the facility. Upon notifying the Union, the parties shall meet within ten (10) business days to discuss the possible closure. The Employer shall provide evidence of its intent to close because the potential buyer will not purchase the facility if said buyer has to honor the “successorship” provision. Upon providing such evidence, the Employer shall be relieved of its obligation under the “successorship” provisions of the contract.

The Employer shall have no responsibility or liability for any breach of the provisions of this Section by the successor employer as long as the Employer performs the obligations set out in this Article.

ARTICLE 28 – SUBCONTRACTING

28.1 Sub-Contracting. The Employer agrees that there shall be no sub-contracting of bargaining unit work, except for Housekeeping and Laundry, for the duration of this Agreement unless the Parties mutually agree to sub-contract Dietary bargaining unit work upon Employer’s demonstration of extraordinary circumstances. The Employer shall give the Union thirty (30) days notice of any sub- contracting of bargaining unit work during the life of this Agreement. The Employer will meet with the Union during said thirty (30) day period to discuss the impact of the sub-contracting on bargaining unit employees.

This Article does not apply to the Employer contracting with caregiver agency staff as necessary. The Parties agree that the use of registry personnel, as a supplement to the workforce, or use of employees of another facility—that contracts with the Employer for the provision of administrative support services—does not constitute subcontracting out bargaining unit work. The Employer will make its best effort to use regular employees first, before the use of staffing agency or registry personnel.

28.2 Insourcing. Suppose, for any reason, the Employer insources current subcontractor functions for job classifications that this Agreement recognizes. In that case, the Employer will consider affected subcontractor employees eligible for hire in any posted positions before hiring anyone else not working for the subcontractor at the time of termination of subcontracting. The Employer agrees to honor the original hire date of any previously subcontracted employees hired in this transition process.

28.3 Initial Sub-Contracting. Suppose the Employer enters into an initial contract with a Sub- Contractor to provide Housekeeping or Laundry services. In that case, the Sub-Contractor shall execute with Union the Memorandum of Agreement (“MOA”) in Section 5 of this Article.

28.4 Memorandum of Agreement Between Union and Sub-Contractor. MEMORANDUM OF AGREEMENT

It is hereby agreed by and between Healthcare Services Group, Inc (the “Employer”), and SEIU Local 503 OPEU (the “Union”) as follows:

1. The Employer recognizes the Union as the exclusive collective bargaining agent for all full-time and regular part-time Housekeeping, and Laundry employees (if any) employed by the Employer and assigned to work at Fernhill Rehabilitation and Care, Tigard Rehabilitation and Care, and Myrtle Point Rehabilitation and Care. Excluding: All other employees, confidential employees, managers, guards, and supervisors as defined in the Act.

2. The Employer and the Union agree to be bound by the terms and conditions of the collective bargaining agreement (the “CBA”) currently in effect (and any subsequent amendments) and expiring on midnight November, 30 2027 between the Union and independently operated facilities of Sapphire Health Services for the Employer’s Housekeeping and Laundry employees (if any) assigned to work at the facilities, except as expressly provided below.

a. A copy of the CBA is attached hereto as Exhibit 1 and incorporated herein.

b. All bargaining unit eligible employees working for Employer at the facility in housekeeping and/or laundry will be hired by the Sub-Contractor.

c. Employer’s health and dental benefits will be the equivalent or better.

d. The terms and conditions of employment set forth in the Employer’s Employee Handbook, as modified from time to time, and the Employer’s general Human Resources Policies and Procedures, as modified from time to time, shall govern the employment of employees covered by this Memorandum of Agreement (the “MOA”) to the extent that any such term, condition, policy, or procedure is not inconsistent with this Agreement. If the Union believes that any such term, condition, policy, or procedure is in conflict with the MOA it shall have the right to file a grievance either when any such term, condition, policy, or procedure is initially implemented, or alternatively, when any such term, condition, policy, or procedure is applied to any employee such that the employee is either disciplined or terminated.

e. Affected employees hire dates, seniority, and hourly wage rates will be maintained and not reduced. [The applicable base hourly wage rates are attached hereto as Exhibit 2].

f. Employees shall wear uniforms as provided by Employer.

g. HCSG employees may utilize HCSG’s Employee Stock Purchase Plan as they do not qualify for the 401k benefit provided by Sapphire Health Services.

h. HCSG’s work week will run from Sunday to Saturday and the employee will be paid on a bi- weekly schedule.

The Employer and the Union agree to be bound by and comply with the grievance and arbitration procedure set forth in the CBA for any and all disputes that may arise with reference to the application or interpretation of the provisions of this MOA.

For any bargaining unit staff employed by the Subcontractor, the following changes to the Grievance article are made: The bargaining unit employee’s immediate supervisor is the Account Manager for the purposes of the Open Door Policy and Step 1 grievances. Step 2 grievances will be filed with the Subcontractor’s District Manager.

In order to resolve any issues in the department managed by the Subcontractor, the Subcontractor agrees that the facility’s Account Manager shall participate in the facility’s Labor Management Committee when such Account Manager and/or Housekeeping/Laundry Supervisor is invited to the LMC Meeting in advance and receives a written agenda with subject matter relevant to operation of the subcontracted department.

This MOA shall be effective as of October 1st, 2024 and will remain in full force and effect through midnight September 30, 2028, and shall be renewed from year to year thereafter, provided that either party hereto may reopen the Agreement to modify, amend or terminate any of the provisions hereof by serving written notice on the other party at least ninety (90) days prior to midnight, September 30, 2028, or a subsequent September 30th of any contract year in which this Agreement remains in effect.

The Employer further agrees that in addition to the Union’s notice to the independently operated facilities of Sapphire Health Services regarding modification, amendment, or termination of the CBA the Union shall provide notice to the Employer under this Agreement, and that the Employer shall be bound to any amendments or modifications to the current CBA that are negotiated and agreed to by the Union and HCSG and that it shall sign an updated MOA and be bound by the terms of any successor CBA negotiated and agreed to by the Union, HCSG, for Employer’s Housekeeping and Laundry employees (if any) assigned to work at Fernhill Rehabilitation and Care, Tigard Rehabilitation and Care, and Myrtle Point Rehabilitation and Care. EXHIBIT 1

The “Collective Bargaining Agreement between SEIU Local 503 OPEU and Dakavia Management for October 1, 2024 through November 30, 2027 is hereby incorporated by reference.”

1/7/2025

ARTICLE 29 – SOLE AGREEMENT, MATTERS COVERED, AMENDMENT, STANDARDS PRESERVED, PREMIUM CONDITIONS

29.1 Sole Agreement. This Agreement constitutes the sole and entire Agreement between the parties and supersedes all prior agreements, oral and written, and expresses all the obligations of, or restrictions imposed on, the respective parties during its term. All individual agreements, both oral and written, which may exist between the Employer and any employee in the bargaining unit, shall terminate upon the execution of this Agreement. The parties agree that this Agreement is the sole agreement concerning wages and benefits of covered employees. The existence, or later provision, of benefits not referenced in this Agreement does not create any vested rights or enforceable past practice. The Employer may provide or rescind any compensation or benefits policies or practices not expressly referenced in this Agreement at any time. Whenever exercising such discretion, Employer will notify Union in advance.

29.2 Matters Covered. All matters not covered in this Agreement shall be deemed to have been raised and properly disposed of. This Agreement contains the full and complete agreement between the parties and neither party shall be required to bargain upon any issue during the life of this Agreement, unless such bargaining of a specific issue is expressly addressed by this Agreement. The failure of either party to enforce any of the provisions of this Agreement or any rights granted by law shall not be deemed a waiver of any provision or right, nor a waiver of the party’s authority to exercise such right in some way not in conflict with the Agreement.

29.3 Amendment. This Agreement can be modified or amended only by written consent of all Parties. The waiver, in any instance, or any term or condition of this Agreement or any breach thereof shall not constitute a waiver of such term or condition or any breach thereof in any other instance.

29.4 Standards Preserved. No employee shall suffer any reduction in their individual hourly wage rate, total amount of paid time off, nor health insurance benefits, because of coverage under this Agreement unless such reduction is expressly addressed by this Agreement or by a written Amendment executed by the parties herein. If the State of Oregon minimum wage rate increases, any employee being paid the minimum wage shall have their compensation increased accordingly. Individuals compensated more than the minimum wage will receive no adjustment to their compensation solely because of such minimum wage rate increase(s).

29.5 Premium Conditions. It is understood that the provisions of this Agreement relating to wages, hours and conditions of work are intended to establish minimum terms for the employment of employees subject to this Agreement. The Employer is free to establish terms above the minimums contained in the Agreement, at the Employer’s sole discretion, and the Employer agrees that if it pays an employee a wage rate in excess of the rates contained in this Agreement, the Employer will not subsequently reduce that employee’s wage rate. The Employer will not apply this Section in an unlawful or discriminatory manner.

ARTICLE 30 – DURATION

This Agreement shall be effective on October 1, 2024 and shall remain in full force and effect through September 30, 2028, and from year to year thereafter, provided that either party may serve written notice on the other at least ninety (90) days prior to September 30, 2028, or any subsequent anniversary date the Agreement remains in effect, of its desire to amend or terminate any provision of the Agreement. Any change agreed upon by the parties shall be reduced to writing and executed by duly authorized officers or agents of the parties to this Agreement.

ARTICLE 31 – COLLECTIVE BARGAINING TRAINING

The Parties will schedule an in-person or virtual joint CBA Training, at each facility, within one hundred and twenty (120) days of this Agreement’s ratification date. The Parties will use best efforts to include representatives from the Employer, SEIU Local 503, and each facility-based union steward. Also, the Parties will invite a Health Care Services Group representative to participate, when contracted by the Employer. The one-time training session will be completed in one (1) hour. The Employer will compensate up to four (4) union members for the scheduled training. The purpose of this training shall be to review language within this Agreement that reflects the following:

• Changes to the former CBA’s language, policy, or procedure in this successor CBA.

• New language, policies, or procedures in this successor CBA or the Alliance Agreement.

• Review of the Parties’ plan to establish and operate FLMCs and SLMCs.

Also, the Parties will discuss any shared goals and next steps to advocate jointly for additional Nursing Home Funding or promote the facility as the employer and provider of choice in the local market.

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