San Luis Obispo County, CA

06/16/2025 | Press release | Distributed by Public on 06/16/2025 21:46

County Labor Relations Bargaining Update - June 2025

County Labor Relations Bargaining Update - June 2025

Author: Human Resources
Date: 6/16/2025 3:42 PM

Please see below for a brief update on the current County Labor Relations Bargaining process as of June 16, 2025.

It's been a busy year of negotiations, as many of the Memoranda of Understanding ("MOUs" or "labor contracts") with County employee organizations are set to expire on June 30, 2025. With that in mind, we'd like to share with you an overview of the County's goals in these negotiations and the progress we've made to date.

We are providing this update to be transparent about our goals (all of which are positive!), the bargaining process, the agreements that have been reached, ongoing negotiations, and upcoming plans for unrepresented staff. We hope you find this summary-and links to details-both informative and useful.

For more information about the bargaining process, follow this

link .

COMPENSATION GOALS AND OUR PROGRESS TO DATE
As you are aware, the County is facing a significant financial shortfall. In financial planning for 2025-26 and beyond, the County determined to rebalance its budget priorities;however, as conveyed and repeated to you by our County Administrative Officer, our Board of Supervisors and County leadership team, the County values its employees and continues to prioritize providing competitive wages and benefits.

A high priority is improving employee compensation-both to remain competitive with comparable employers and to fairly reward valued employees for their contributions, while also helping to offset inflation and other cost-of-living increases. This has been made possible through a detailed focus on efficiencies - while minimizing impacts to employees - and on a strategy for increasing wage rates over the next three years.

As part of this strategy, the County arrived at a plan to help ensure competitive compensation. The County conducted an in-depth analysis of other California Counties and local employers, resulting in a revised list of comparable employers (our labor market). By using this revised labor market, the County falls about an additional 3.5 percent further behind market in wages. Our agreements with employee organizations have aimed to reduce this gap as much as is fiscally prudent.

For the agreements we've reached recently , restructuring pay steps was an essential component to increasing pay rates substantially over three years to be market competitive. The two step restructuring mechanisms are adding a step (an additional 5 percent on top of the pay range), and "add step/drop step" (an additional 5 percent increase to the bottom and top step of the pay range). Attaining market wage competitiveness for SLOCEA remains a key priority and topic of the current negotiations.

The agreements reached with employee organizations to attain market competitiveness differ to some degree. We are currently in negotiations with SLOCEA. While the County's general priorities are as outlined above, the final agreement with SLOCEA will necessarily reflect the goals and priorities the parties determined in their negotiations.

An example of how this process works:

  1. "Add step": Addition of a seventh step
  2. "Add step/drop step": (a) the current first step is eliminated. Employees on that step automatically move to step 2. (b) a new top step is added, so employees at the top step with a year or more at the top step move up to a new top step that is 5% higher than the prior top step. (c) The result of this process is a seven-step range with 5% increases at bottom and top steps
  3. Employees who are not at the top or bottom step would receive their 5% step adjustment at their regular evaluation (per current practice)
Any across the board increase or equity adjustment for behind-market classifications would add to increases beyond the new steps.

This is an example of how the step restructuring works. Whether and how it applies in any particular bargaining unit is subject to negotiations between the County and each employee organization.

IMPORTANT UPDATES

Pension Contribution Changes

Each fiscal year, updated pension contribution rates for employees and the County are submitted to the Board of Supervisors for approval, based on an annual actuarial valuation by the San Luis Obispo County Pension Trust. Rate increases are shared between the County and employees as outlined in applicable MOUs or by Board resolution for unrepresented employees. If an MOU is expired, the County and Employees share increases 50/50 until and unless new cost sharing provisions are negotiated in a new MOU (or approved by Board resolution for Unrepresented employees).

Click here to see the details of the pension increase for each employee association and tier.

Healthcare Premium Increases

2026 medical insurance premium information is now available. We recognize that healthcare premium increases have been very impactful to employees. The January 2026 overall increase is high (14 percent); however, because we successfully negotiated new cost sharing arrangements in all of our recently negotiated MOUs, many employees will experience only a relatively small increase to their out of pocket cost, with the County absorbing most of the increase.

Our most recent agreements with all employee organizations to date dramatically reduce the impact of premium increases for employees in employee plus one and employee plus two categories. While the overall premium rate increase is 14 percent, the County's cafeteria contribution will increase by 12 percent for employee plus one and employee plus two. For most employee associations, the employee only cafeteria amount will cover 100 percent or more of the cost of the Tandem PPO plan.

We hope to achieve similar results in the negotiations that are now in process with SLOCEA, with DSA later this summer, and with unrepresented employees.

Negotiations Summary

Conclusion

We are committed to keeping County staff informed and engaged on employee and labor relations matters and will provide regular updates as we continue to negotiate. Please contact your union representatives if you have questions and look for additional updates in the coming weeks.
San Luis Obispo County, CA published this content on June 16, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 17, 2025 at 03:47 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at support@pubt.io