UC Enhances Economic Proposal as AFSCME Counters Ahead of Planned May 14 Strike

Despite making meaningful progress at the bargaining table this week, AFSCME declined another UC offer that would have increased pay by more than 34% and provided $2,000 ratification bonuses to eligible employees.

"We are disappointed that the latest proposal package was not accepted," said Missy Matella, Associate Vice President for Systemwide Labor and Employee Relations. "We know employees are looking for certainty, stability and meaningful economic support, and UC remains committed to reaching an agreement that puts additional money in employees' pockets and provides long-term support to address affordability."

In recent months, the parties have moved at an accelerated pace, reaching tentative agreements on roughly three-quarters of the contract's major articles while resolving additional issues and maintaining existing contract language across many other provisions. Only a limited number of contract articles remain unresolved, with the remaining discussions primarily focused on wages, benefits and a smaller number of workplace matters.

The parties exchanged new proposals this week that brought them closer than ever to reaching a contract agreement ahead of the union's planned "open-ended" strike scheduled to begin May 14.

UC's latest economic proposals would have expanded the University's April 24 offer to provide many employees with up to 34% total pay growth over the life of the contract through across-the-board wage increases and annual step increases.

Under the updated proposal, AFSCME employees would receive:

• Eligible AFSCME-represented career employees would receive a bonus of up to $2,000 after the contract is ratified.
• Most career employees would receive up to 34% total pay growth over the life of the contract through a combination of annual raises, annual step increases and the 5% increases in 2025.
• Many employees previously earning below $25 per hour would also see additional wage growth through revised pay scales and guaranteed step increases.
• Pay scales with unused steps below $25 per hour would be restructured to eliminate lower-wage steps and create continued opportunities for future earnings growth.
• Lower-paid employees whose wages increased under the University's $25-per-hour minimum wage would continue to receive future wage growth opportunities through additional pay steps and guaranteed step increases.
• Employees who are no longer eligible to receive step increases because they are at the top of their pay scale will now receive lump-sum equivalents of roughly 2%, resulting in minimum payments of over $1,000 for even the lowest-paid employees.
• Employees would save up to $3,000 annually on medical plan premiums through a combination of subsidies and caps on premium increases, providing protection against rising health care costs.
• Wage increases would be applied retroactively to April rather than July, providing employees with additional back pay following ratification.

By expanding immediate financial support through increased ratification bonuses and accelerated pay progression, the proposal aimed to put more money in employees' pockets more quickly following ratification.

"UC and AFSCME have made meaningful progress during negotiations, including reaching multiple tentative agreements," Matella added. "UC remains fully committed to reaching a fair and responsible agreement that addresses employee priorities while supporting the University's long-term public mission."

Bargaining began in January 2024, and AFSCME 3299 has announced plans for an open-ended systemwide strike to begin on May 14, despite ongoing negotiations. The two parties are scheduled to reconvene on May 12-13.

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