State's most profitable nursing home seeks givebacks from workers

The most profitable nursing home in Minnesota is seeking wage freezes and givebacks from workers, jeopardizing the quality of care, workers said. Golden Living Center – Lake Ridge in Roseville, owned by one of the largest private equity firms in the nursing home industry, made $2.4 million in profits in 2010, according to Medicaid cost reports. Yet management is seeking givebacks in current negotiations with workers, who are represented by SEIU Healthcare Minnesota.

Workers conducted informational picketing Friday outside the nursing home and were joined by union members from other Golden Living facilities and a state lawmaker who said management’s actions contradict the intent of state law.

"Golden Living is demanding to freeze our wages for years and slash our wage scale by up to $3 an hour," said Brenda Hampton, a nursing assistant. "It's getting harder and harder for us to make ends meet, but Golden Living is making millions in profits. That's not right."

Right: Rep. Mindy Greiling talks with workers at the informational picket.

SEIU Healthcare Minnesota represents 137 workers at the nursing home, who have been working without a contract since Nov. 30. The same is true for workers at Golden Living Center - Excelsior, where an informational picket is planned this week.

When the State of Minnesota has increased nursing home reimbursement rates in recent years, a significant portion of that money has been designated for wage and benefit increases for workers. The union believes that Golden Living's proposal is not in keeping with the Legislature's intent.

Rep. Mindy Greiling, DFL-Roseville, who talked with the workers Friday, agreed.

“The money appropriated by the Legislature was earmarked for the workers,” she said.

“Right here in Roseville we have the most profitable nursing home in the whole state,” she added. “Other nursing homes that aren’t making as much money aren’t asking for these kinds of cuts.”

Members of UFCW Local 1189, which represents workers at two other Golden Living facilities, participated in Friday’s demonstration to show support.

The state is looking into whether the nursing home is violating the Legislature’s intent, union representative Lisa Weed said. In the meantime, no negotiations are scheduled and employees continue to work under the terms of the previous contract.

Golden Living, formerly known as Beverly Enterprises, is one of the largest nursing home chains in the United States. It has national offices in Plano, Texas, and Fort Smith, Arkansas.

Members of UFCW Local 1189 which represents workers at two other Golden Living facilities, showed support.

Barb Kucera

I edit the Workday Minnesota news site, www.workdayminnesota.org