Dear colleague:

Last month we informed you and your service employee colleagues that UC would be giving you a wage increase, and that you will be seeing several other changes to your pay and benefits, as a result of stalled negotiations with the American Federation of State, County and Municipal Employees (AFSCME) union. Specifically, we informed you that UC is implementing the following:

  • A one-year wage increase of 2 percent for all service employees.
  • Health benefits at the same 2018 rates as other UC employees with similar salaries (based on pay band).
  • Parking at the current rates for each location.
  • No change in the pension benefits of current service employees. Service employees who are hired or first become eligible for primary retirement benefits on or after July 1, 2018, will have a choice between UC’s pension plan or a 401(k)-style plan.

As we also informed you previously, on April 6 UC presented AFSCME leaders with the following final settlement offer in exchange for a multi-year contract, which union leaders rejected:

  • Guaranteed 3 percent wage increases every year for the next four years.
  • A one-time payment of $750 (prorated by appointment percentage) for eligible service employees, once a contract is ratified.
  • Excellent health and retirement benefits at the same rates as other UC employees with similar salaries, with a limit of $25 per month on health insurance premium increases for service employees in UC’s Kaiser and Health Net Blue & Gold plans.

We believe this was a very fair offer, and we are disappointed AFSCME leaders rejected it. At some point, UC and AFSCME will need to return to the bargaining table in order to negotiate any additional wage increases and health insurance rates for future years as part of a multi-year contract. UC has reached out to AFSCME about future bargaining, and we are scheduled to meet with the union in early July.

Paycheck changes

Pay increases are reflected in your check for the June pay period, depending on your pay schedule:

  • Biweekly: Effective June 3, 2018, and reflected in June 27 paycheck
  • Monthly: Effective June 1, 2018, and reflected in June 29 paycheck

Changes in parking rates vary by location. See Appendix E of the Service (SX) Contract on UCnet for rates that apply to you.

Kaiser and Health Net Blue & Gold premiums will increase to 2018 rates effective July 1, 2018. Your cost increases, if any, depend on your pay band and type and level of coverage.

Changes will be reflected in your check for the July pay period, depending on your pay schedule:

  • Biweekly: July 25, 2018
  • Monthly: August 1, 2018

The chart below shows the 2018 contribution amounts that will be reflected in your paychecks beginning July 25 or August 1.

Pay Band 1 ($54,000 or less)

Self Self + child(ren) Self + adult Self + adult and children

Health Net Blue & Gold

$39.57

$71.22

$142.78

$174.44

Kaiser

$18.97

$34.15

$41.55

$56.71

Pay Band 2 ($54,001 to $107,000)

Self Self + child(ren) Self + adult Self + adult and children

Health Net Blue & Gold

$75.62

$136.11

$225.08

$285.58

Kaiser

$55.02

$99.04

$123.85

$167.85

If you have any questions about your paycheck, please contact your local payroll office or (for UCOP, UC Riverside, UC Merced or ASUCLA employees) UCPath.

Please visit https://ucal.us/afscme to learn more about UC’s negotiations with AFSCME.

As always, thank you for all you do each day in support of the university and the people we serve.

Sincerely,

Peter Chester
Executive Director
UC Systemwide Labor Relations