Mount Nittany Medical Center Union Ratifies New 3-Year Contract

Mount Nittany Medical Center’s unionized employees on Monday ratified a new three-year contract, bringing to an end more than four months of negotiations that included the hospital’s first labor strike in 22 years.

The contract includes wage increases of 3% each of the first two years and 2% in the third. It also includes a 1% raise if Mount Nittany wins its lawsuit against the federal government to restore its Sole Community Hospital status, which provides millions annually in additional Medicare reimbursements.

Among the medical center’s 950 workers represented by SEIU Healthcare PA, 86% voted in favor of the agreement, according to the union.

Union members said the contract protects benefits and makes important improvements in wages and workplace safety, though it does not achieve all that workers were seeking.

“We advocated tirelessly for months and did everything we could,” Jess Mulroy, a registered nurse at Mount Nittany Medical Center, said in a statement. “It’s not everything we wanted, but we achieved an agreement that protects what generations of Mount Nittany workers fought to get, and made progress in benefits, safety and security.

“We have spent the past months fighting hard for this hospital’s future, and we’re glad to report that as Mount Nittany continues to grow and succeed, the workforce that keeps this place running is front and center. We look forward to continuing to advocate for a strong investment in care and jobs in years to come.”

Mount Nittany officials said the agreement represents a commitment to strong wages, benefits, safety and patient care.

“This contract reflects Mount Nittany Medical Center’s dedication to investing in competitive wages, strong benefits, and initiatives that support the professional growth and wellbeing of our employees,” Kathleen Rhine, president and CEO of Mount Nittany Health, said in a statement. “We are grateful to everyone across Mount Nittany Health for their support, patience and commitment throughout this process. As we move forward together, we remain focused on supporting our employees and delivering exceptional care to our patients and community.”

The contract also offers pay grade adjustments for 22 positions, providing additional raises beyond the general increase and seniority steps for those classifications.

Workplace safety provisions of the agreement are two task forces, implementation of a camera-integrated weapons detection system, a mass text emergency notification system; expanded employee duress badge technology and establishment of a K-9 officer program.

The contract also includes two weeks of fully paid parental leave, available to both parents, following the birth or adoption of a child, increased uniform and shoe allowances and changes to part-time scheduling policies which preventing part-time employees from being scheduled above their FTE allotment.

The collective bargaining agreement is effective through June 30, 2029.

Mulroy thanked the community for its support during the contentious negotiations with the hospital.

“We want to again express a huge appreciation for the community who stood with us the whole way. Our community and wanting to continue giving them the best quality of care is why we kept going. We can’t wait to show our thanks to patients and give them our 110%.,” Mulroy said

Since negotiations began on April 29, Mount Nittany workers have been seeking across-the-board wage increases they say will keep pace with inflation and the rising cost of living in Centre County, as well as new workplace safety investments.

The union’s previous three-year deal expired on June 30, and as the two sides remained at loggerheads over wage issues, workers went on a five-day strike in late July that cost the medical center $6.4 million for temporary staffing. It was the hospital’s first strike since 2004.

When they returned to the bargaining table in early August, workers said they were “deeply disappointed” by Mount Nittany executives’ offer of 2% wage increases for each of the next three years, down from the 3% in the first year and 2% each of the following two years previously proposed and rejected by the union.

A hospital spokesperson said at the time that the lower wage increase proposal came after the health system finalized its financial results for the 2025-26 fiscal year that ended June 30 and recorded its first operating loss in more than a decade. Mount Nittany officials also continued to evaluate the impact of losing the Sole Community Hospital designation, which a lawsuit against the federal government said will cost the medical center $9 million in higher Medicare reimbursements, and other “ongoing reimbursement pressures and increased expenses, including the cost of the five-day strike.”

Negotiations resumed on Sept. 3 with Mount Nittany offering wage increases of 2.5% in the first year and 2% each of the following two years — short of the 4.5%, 4%, and 3% proposed by the union — which workers say was down from prior demands in order to address the hospital’s operating deficit and other fiscal concerns.

Union members also proposed with a 2.5% raise only if Mount Nittany wins its lawsuit against the federal government over its loss of Sole Community Hospital status, which accounts for about $9 million in additional Medicare reimbursements. Mount Nittany countered with a $500 bonus per worker pending the Sole Community Hospital designation funding.

Workers said Mount Nittany has the ability to meet wage demands, pointing to its healthy balance sheet and significant facility investments.