UC offers AFSCME new wage and health care cost proposals

The University of California today offered an updated wage package and a new health care cost proposal to the American Federation of State, County and Municipal Employees (AFSCME).

If accepted by the union, today’s wage proposal will increase pay for AFSCME-represented employees to $25 an hour on July 1, 2025, or provide a 5 percent increase to the employee’s base hourly rate, whichever is greater, a full 10 months earlier than was previously proposed. The increases total 26 percent throughout the five-year contract for eligible employees.

“Despite the new budget realities facing public entities across the state, we remain committed to recognizing the value AFSCME members provide to our system,” said Missy Matella, associate vice president of Systemwide Labor Relations. “We’re thrilled to announce increased compensation and benefits designed to alleviate our employees’ financial pressures.”

The new wage and health care proposals are the latest round of proposals presented between the parties as part of ongoing contract negotiations, which began in January. Both proposals are intentionally designed to directly address AFSCME’s concerns, facilitate agreements sooner, and minimize uncertainty during contract negotiations.

UC also proposed a monthly credit towards health care costs for AFSCME-represented members today. The University offers a sliding scale for health insurance contributions, which means lower-paid employees pay a lower percentage of their salary toward their monthly health care premium. The proposal today is structured similarly; the lowest-paid AFSCME members in the first salary band will receive a $100 monthly credit, and those paid slightly more (pay band 2) will get a $75 monthly credit to assist with health care costs for the Kaiser or UC Blue and Gold health plans.

AFSCME represents 31,700 employees across the University of California system in two bargaining units: service workers and patient care technical employees. Most AFSCME-represented employees, 92 percent in pay band 1 and 87 percent in pay band 2, opt for either Kaiser or the UC Blue and Gold plan, so nearly 90 percent of these members would receive a credit toward their health care costs. If accepted by the union, the proposed health care savings would put $900-$1,200 in each member’s pocket per year, or $4,500-6,000 total for the life of the five-year contract.

Versión en español: https://www.universityofcalifornia.edu/press-room/la-uc-ofrece-la-afscme-nuevas-propuestas-de-salarios-y-costos-de-seguro-medico