UC Adds Ratification Bonus, Pay Growth, and Health Care Caps in Latest AFSCME Offer During Ongoing Negotiations for a New Contract for Patient Care Technical and Service Employees 

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The University of California and American Federation of State, County and Municipal Employees (AFSCME) continued bargaining April 7-8 for a new contract for approximately 38,832 members of the Patient Care Technical (EX) and Service Employee (SX) bargaining units.

During the two-day session, UC strengthened its previous wage offer: in addition to 32.3% total wage growth over the life of the contract (including last year’s 5% increase), UC is proposing a $1,000 bonus for every career AFSCME-represented employee, adjusted for part-time and full-time status. The bonus would be paid within 90 days of ratification, providing AFSCME–represented UC employees with immediate compensation to address their specific needs.  

For wage structures impacted by the move to $25 an hour in 2025, UC is also offering one new step each year starting in 2027, creating additional built-in pay levels that ensure employees continue to receive step increases and advance within their job classification. UC’s previous proposal would remove unused steps below $25 per hour, establishing a clearer foundation for future across-the-board and step increases. 

To address rising health care costs, UC is proposing a new 7.5% cap on Kaiser Permanente premium increases, using 2026 rates as the baseline. This builds on the existing 5% cap on UC Blue and Gold plans, effective in 2027.

The current proposal represents the University’s highest-value offer to date.

Key Takeaways

• UC increased its wage offer from approximately 25% early in bargaining to a compounded* 32.3%
• UC is offering steps to eligible employees in each future year of its current offer – 2026, 2027, 2028, and 2029
• 2026 ATB improved from 4% to 5%
• UC is offering caps on Blue and Gold (5%) and Kaiser (7.5%) employee health care premiums and providing premium offsets to further reduce the cost of healthcare to members.
• UC added a ratification bonus (up to $1,000) in the latest proposal

* Compounding means that each salary increase is calculated on the updated salary at that point in time, so successive raises build on one another as the base amount grows over the life of the agreement. 

Example 1: Senior Custodian with a Starting Salary of $67,419.00

During the bargaining session, UC also passed proposals covering Agreement, Grievance Procedure, and Layoff and Reduction in Time. The Union passed proposals on Health & Welfare Benefits, Housing, Sick Leave, Parking, and Wages.

The University recognizes the essential contributions patient care technical and service employees make to the institution every day and remains committed to bargaining in good faith to reach a comprehensive multi-year contract that fairly compensates employees and is also financially sustainable over time. Since contract negotiations began in January 2024, UC has made significant progress toward strengthening its offer with meaningful increases and expanded opportunities for long-term growth.

The University’s approach supports employees by providing generous wage increases and allowing them to use that money for housing, childcare, or other ways that best serve their needs.   Reaching an agreement would provide employees with greater certainty and access to these benefits as soon as possible. For more information about the University’s current offer, read our press release here.

The next bargaining session is scheduled for April 21. 

Learn how contracts are bargained.

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