AFSCME 2025 Implementation Frequently Asked Questions

What is happening?

After 16 months of negotiating and bargaining in good faith with AFSCME, reaching impasse and exhausting the impasse procedures, UC is implementing certain terms of its last, best and final offer (LBFO) for AFSCME SX and EX bargaining units.

Under the terms of UC’s LBFO and as allowed under state law, UC is moving forward with wage increases for these critical employees who provide vital services to its hospitals and students across the system. These increases will move these UC team members to $25 an hour by July 1 or a 5% increase, whichever provides a greater benefit to its employees, provide health care credits to employees in pay bands one and two and implements 2025 health care premium rates across the AFSCME workforce.

UC’s action also clarifies grievance procedures, leave time (including expanded sick leave), and meal and rest periods.

What is a last, best and final offer?

A last, best, and final offer (LBFO) is the last and best offer the employer can provide during negotiations and comes after the parties reach impasse, go through mediation, and fact-finding. UC provided a last, best, and final offer on April 30 after its final face-to-face meeting with AFSCME on April 16.  In that meeting, AFSCME decreased its initial wages demand by a total of 1.5% over three years while simultaneously increasing its Health and Welfare demand.

What does it mean for an employer to implement terms from the LBFO?

Once the employer and union have bargained to impasse—a point where further negotiations would be futile, the employer may lawfully implement changes that were part of LBFO. This means the employer can unilaterally impose the specific terms and conditions that were offered to the union but rejected.

This action does not mark the end of the duty to bargain; the employer must continue to bargain in good faith if the union requests further negotiations.

Why is UC implementing its LBFO wage offer?

As the parties have been unable to reach a deal after 16 months of negotiations and because the parties have exhausted the bargaining process, UC is moving forward with providing wage increases to its lowest paid employees and implementing other key terms, like 2025 health care premium rates. Despite financial uncertainties, UC values these employees and wants their wages over the next year to reflect that commitment.

When is this happening? What are the terms?

Imposed terms will take effect by July 1, with notice provided to the union on June 25. The imposed terms include wages, employee health care contribution offsets, sick leave, other leaves, and clarifications to the contractual grievance procedure.

When will employees see the wage increases?

Biweekly-paid employees will see the wage increase applied to the pay period covering June 22 through July 5 (July 16 paycheck). Employees paid monthly will see increases applied to the pay period beginning July 1 (August 1 paycheck).

What are the terms of the change to employee health insurance contributions?

The purpose of the implemented term on employee health insurance contribution is to replace the current cap structure with a subsidy approach that will benefit AFSCME-represented employees in Pay Bands 1 and 2 (97% of AFCME-represented employees) who elect either the Kaiser or UC Blue and Gold HMO. Employees in Pay Band 1 who elect an HMO will receive a $125 monthly subsidy to offset their employee contribution. Employees in Pay Band 2 who elect an HMO will receive a $100 monthly subsidy. These amounts are built into the health benefits rate structure and will be reflected as a reduced monthly contribution amount deducted from affected employees’ paychecks.

What does this mean for ongoing contract negotiations?

UC is always committed to good faith bargaining and negotiations as required under state law. UC has exhausted the state-required bargaining obligations in this case through 16 months of negotiations and several substantial wage offers. UC will, of course, continue to engage with the union as required by law and is eager to review any proposal that demonstrates substantial economic movement in hopes of reaching a mutually beneficial agreement.

Can AFSCME still strike?

Yes. Under state law, UC cannot impose the parties’ no-strike provision, so the union may continue to call for strikes after UC imposes terms from its last, best, final offer. Historically and during the parties’ current negotiations, AFSCME has called for strikes several times, starting before the contract expired and continuing past UC’s LBFO. That said, UC is hopeful that its decision to implement wage increases demonstrates that it is committed to this critical workforce.