University of California officials announced today (Nov. 1) that an agreement has been reached between UC and the University Professional and Technical Employees union on a new labor contract for UC's roughly 2,800 health care professional employees. A tentative agreement was reached on Sept. 29, 2010, and UPTE members have voted to approve the new contract.

"Our health care professional employees play a critical role in helping UC hospitals and student health centers deliver quality patient care," said Dwaine Duckett, vice president for universitywide human resources. "We are very pleased to have reached an agreement that acknowledges the excellent work and many contributions that our health care professional employees make to the university and the state."

Highlights of the agreement include:

Wages

• Step increases of approximately 2 percent
• Individual equity increases in specified classifications
• December 2010 range adjustments of 3 percent, with 1 percent of the increase held until May 2011. This 1 percent will be paid only if UPTE-represented health care employees proceed with the 1.5 percent employee pension increase on July 1, 2011
• July 1, 2011 step increase of approximately 2 percent provided UPTE-represented health care employees proceed with the 1.5 percent employee pension increase on July 1, 2011

Health benefits

Health care employees will continue to enjoy the same excellent medical benefits provided to other UC employees. For calendar years 2010 and 2011, UPTE-represented health care employees will contribute to monthly premiums and other benefit costs consistent with the employee's pay band and coverage selected.

Pension benefits

• UPTE-represented health care employee contributions currently going to the UC Defined Contribution Plan will be re-directed to the UC Retirement Plan, retroactive to May 1, 2010. The delayed UCRP contributions will be repaid to UCRP through payroll deductions, in equal amounts, spread over a six-month period.
• Employee contributions to the UCRP will increase by an additional 1.5 percent effective July 1, 2011, unless, prior to April 1, 2011, UPTE demands to bargain over the July 2011 employee contribution to the UCRP.
• Should UPTE demand to bargain over the additional 1.5 percent employee UCRP contribution, the remaining 1 percent of the December market increase will not be paid, the July 1, 2011 will be held pending the conclusion of negotiations, and the contract will expire on June 30, 2011. Negotiations for a successor contract would therefore begin in the spring of 2011.

Contract duration

The current contract is extended through December 31, 2011, provided UPTE agrees to the additional 1.5 percent employee pension increase in 2011. Absent such agreement the contract will expire on June 30, 2011.

The average annual salary for UPTE-represented health care employees is $90,900. The primary source of salary funding for this employee group is UC medical center revenue (81 percent).

These negotiations started in May 2009 and continued through October of 2009. In the spring of 2010, the parties agreed to engage the services of a state-appointed mediator and discussions resumed in June 2010. Discussions continued throughout the summer with a mediated agreement reached on Sept. 29, 2010.