University of California officials announced today (May 9) that UC's 7,300 service workers agreed to ratify a new three-year labor contract through Jan. 31, 2008.

"We are very pleased to have come to a fair agreement with our service employees," said Howard Pripas, UC director of labor relations. "The contract rewards all our service workers for their continued hard work, and it is financially realistic given the state funding the university hopes to receive under our budget compact with the governor. The university worked very hard throughout the process to bring the negotiations to a successful conclusion."

Highlights of the agreement include:

- Wages: 3 percent across-the-board wage increases, effective Oct. 1, 2005; 3 percent across-the-board increases in year two; and a 4 percent increase in year three of the contract, consistent with the university's budget compact with the governor and subject to final state funding appropriations in each year. The agreement also includes additional equity adjustments that will ensure all UC service workers will earn at least $9 per hour;

- Health benefits: UC will maintain its current salary-based approach to health insurance premiums through 2009;

- Professional development and training: Expanded employee development and training resources, including 24 hours per year of paid career development, and the establishment of a labor-management committee to identify career paths and promotional opportunities;

- Parking rates: Employees represented by the American Federation of State, County and Municipal Employees will receive the same lowest parking rates as other represented staff at the same location with the same parking access.

The University of California and the American Federation of State, County and Municipal Employees began negotiations for service employees in July 2004. The union held a one-day strike on April 14, in which less than one third of UC service workers participated along with limited numbers of individuals from other unions. There was minimal impact on operations and services at most UC campuses.

The university takes pride in its ongoing commitment to working effectively with its labor unions and in its ability to continually provide quality employment conditions and opportunities for the more than 160,000 employees that make UC their employer of choice. UC negotiates with 15 unions representing approximately 60,000 UC employees throughout the state.