We know that a lot of information about the status of contract negotiations with UC has been circulated. We want to ensure you have the most up-to-date information regarding the University’s proposals. Over the past several months, the University of California has made strong economic offers for contracts for patient care technical and service employees represented by the American Federation of State, County, and Municipal Employees (AFSCME) union.
The University values you as an AFSCME-represented employee and has sought to provide proposals that support your needs. UC offered economic proposals that raise the minimum wage and meet AFSCME’s stated demand for $25/5 in February and in June. UC’s wage proposal would raise all employees’ wages to $25 an hour by July 1, 2025. UC has also increased sick and vacation leave and added Juneteenth as a holiday. Although the union made it clear it was no longer willing to negotiate by declaring impasse this summer, we have continued to work to secure a new contract. Review details of past bargaining session updates at our UCNet site. UC’s offers are summarized in the table below.
| Topic | UC Offer |
| AFSCME Wages | Effective July 1, 2025, all employees will receive a minimum wage of $25 an hour and at least a 5 percent across-the-board pay raise.This meets AFSCME’s original demand of 25/5. On average, AFSCME members’ pay will increase by 26 percent over the contract’s life. The value of the increases total $700 million. |
| Health Care Premium Credits | $75 or $100 monthly credits to offset health care premiums, totaling $900 or $1,200 annually per employee. |
| Work-Life balance | Expanded vacation and sick leave. Added Juneteenth as a paid federal holiday. |
We know that there are a lot of questions about healthcare costs, which are rising nationally, and UC is not immune. Increases in healthcare costs are determined by external factors such as increases in plan utilization, mandated additions of covered services, and increases in drug costs. AFSCME members’ premiums may increase for 2025 due to these external factors, but employee premiums will be held at 2024 rates until negotiations are complete.
Even if employee premiums increase following negotiations, UC will continue to pay a significant portion of the cost—$2.99 billion in 2025—to help reduce the impact on UC employees. UC has proposed healthcare credits to AFSCME thatwould reduce monthly premium costs by $75 or $100 per employee in salary bands one and two, with the higher amount reserved for lower-paid workers. These credits amount to $1,200 annually for eligible employees or as much as 2.5 percent in additional compensation.
As a reminder, as a career UC employee, you are eligible to receive the following benefits:
| • Medical | • Disability |
| • Dental | • Life |
| • Vision | • Accidental death & dismemberment |
| • Health Flexible Spending Account (FSA) | • Accident, critical illness and hospital indemnity |
AFSCME career employees are also entitled to two retirement program options: Pension Choice offers a UCRP pension benefit with a supplemental 401(k)- style component for eligible employees, and Savings Choice offers a stand-alone 401(k)- style account.
In addition to the benefits above, all career UC employees are also eligible to receive:
| • Adoption assistance | • Legal |
| • Dependent care flexible spending account | • Identity theft protection |
| • Tuition discounts | • Family care resources |
| • Pet Insurance | • Home and Auto Insurance |
We remain hopeful that ongoing negotiations will proceed in good faith, allowing both parties to reach a fair deal that supports you. Our negotiation teams have worked hard for months to present sincere proposals. The University believes that its offers fairly acknowledge the contributions of AFSCME-represented employees, and we are optimistic about a favorable outcome.