UC Offers Path to Resolve Contract with AFSCME

The University of California today presented the American Federation of State, County and Municipal Employees (AFSCME) with a comprehensive contract supposal designed to bring negotiations to a close and provide long-needed certainty, stability, and relief for UC's lowest-paid employees.

After more than two years of discussions, UC's supposal is intended to resolve outstanding issues and allow employees to focus on their work and their lives with confidence in their pay, benefits, and future.

"UC recognizes the strain that a prolonged and unresolved contract places on employees and their families, particularly amid broader economic and political challenges," said Missy Matella, Associate Vice President for Systemwide Employee and Labor Relations at the University of California Office of the President. "This offer offers a clear, responsible path forward, delivering meaningful wage growth and predictable health care costs while providing employees with much-needed stability."

In 2025, after the parties' contract expired, the University provided AFSCME-represented UC employees with a 5% pay increase and raised the minimum wage to $25 per hour. The University's new offer includes an additional 7% increase in 2026, 6% in 2027, and 5.5% in 2028 through a combination of across-the-board and step increases for eligible employees. When compounded and including the 5% received in 2025, these increases could result in total pay growth of nearly 26% for eligible employees. The offer also includes $1,000 longevity payments for employees with 20 years of service.

To address rising health care costs, UC is also offering to continue premium reductions that lower monthly costs for the lowest-paid employees and to cap premium increases for employees enrolled in the Blue & Gold medical plan, starting in 2027. This is in addition to the premium subsidies already implemented in 2025 and 2026.

AFSCME represents approximately 38,000 patient care and service workers across the UC system, which includes 10 campuses, six academic medical centers, and three national laboratories. While the parties have reached tentative agreements on more than one-third of the contract's articles and side letters, negotiations have not yet resulted in a final agreement.

In recent months, UC has worked intensively to accelerate bargaining across the system and has successfully reached agreements with other labor partners, including CNA and UPTE, reflecting a shared commitment to fair outcomes and sustainable improvements, including on health care.

UC believes the supposal now before AFSCME addresses key priorities while remaining fiscally responsible and sustainable for the University. If accepted, the agreement would provide stability and certainty for AFSCME-represented employees through June. 30, 2029.

The parties will meet again in the coming weeks to continue the discussion.

More information about UC's offers and bargaining history with AFSCME is available here.

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