UC Expands AFSCME Offer to Address Affordability with Nearly 33% Pay Growth and Lower Health Costs

Demonstrating its commitment to delivering proposals to address affordability concerns for employees, the University of California has expanded its contract offer to AFSCME-represented patient care and service workers, delivering even stronger wage growth, new financial protections, and meaningful improvements to working conditions.

Building on its earlier proposal, UC's latest package, an increase of more than $12 million over the previous offer, now delivers up to nearly 33% total pay growth over the life of the contract when annual raises and step increases are combined. In addition to the 5% wage increase already provided to AFSCME-represented team members in 2025, UC's offer includes across-the-board raises of 5% in 2026, 4% in 2027, 4% in 2028 (up from 3.5%), and 3% in 2029, alongside step increases each year of the contract to support steady wage progression.

The updated offer also includes up to a $1,000 ratification bonus for eligible employees, paid within 90 days, providing immediate financial support.

UC has further strengthened the proposal with new direct benefits for frontline workers. For the first time, the package establishes a guaranteed minimum shift differential of $1.25 per hour for eligible evening and night shift titles, guaranteeing compensation for employees working nontraditional hours. UC's offer also guarantees eight step wage scales for those wage scales impacted by the University's move to $25 an hour across the system last year, creating compensation certainty for these critical employees.

The parties reached four tentative agreements on articles, including Development, Grievance Procedure, Out of Classification Assignments, and Transfer/Promotion. Previously, the parties reached agreements on Arbitration, Discipline and Dismissal, Non-Discrimination in Employment, and Performance Evaluation for a combined total of eight tentative agreements.

"AFSCME-represented employees are essential to the University of California, and we have strengthened our offer because it reflects both their contributions and the priorities raised throughout negotiations," said Missy Matella, Associate Vice President for Systemwide Employee and Labor Relations. "This updated proposal delivers nearly 33% pay growth, expanded financial protections, and meaningful improvements to working conditions. Our goal remains reaching a fair, responsible agreement through good-faith bargaining that provides employees with long-term stability and opportunity."

The proposal also delivers more tailored benefits across different groups of employees:

• Employees who are situated above the range as identified by the UC system (red circled) shall be paid a one-time retirement-eligible non-base building lump sum equivalent to the ATB provided that year.

• For employees impacted by the move to a $25/hour minimum, the plan simplifies pay scales, removes lower steps, and creates clearer advancement paths with at least eight steps in each structure. Employees with 20 or more years of service would receive $1,000 longevity bonuses each year of the contract, beginning in July 2026, recognizing long-term commitment.

Health care affordability remains a central component of the offer. UC's proposal maintains caps on annual premium increases and continues monthly premium reductions for lower-paid employees, providing both immediate savings and long-term protection from rising costs. Today, more than 16,000 AFSCME-represented employees pay less than $100 per month for health coverage, and about half pay $0, reflecting the strength of UC's benefits package.

Negotiations are ongoing, with the parties continuing to work toward a comprehensive agreement that would bring these enhanced benefits to employees as soon as possible.

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