UC Continues to Make Significant Wage Proposals at the Table, Offering Nearly 34% Pay Growth and $2,000 Bonuses 

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The University of California and American Federation of State, County and Municipal Employees (AFSCME) continued negotiating on May 6-7 for a new contract for roughly 39,618 members of the Patient Care Technical (EX) and Service Employee (SX) bargaining units.  

During the two-day bargaining session, UC further sweetened its April 24 proposal with a stronger economic package that offered many employees up to ~34% total pay growth over the life of the contract through yearly raises and step increases. The updated package proposal, which AFSCME’s bargaining team declined, also included stronger affordability and health care protections. In addition to larger across-the-board raises, the proposal maintained annual step increases of about 2%. 

Under the updated proposal:  

• Every eligible AFSCME member would receive a $2,000 bonus upon ratification of the contract.  
• Lower-paid employees earning about $25 per hour would have more opportunities for long-term wage growth through guaranteed steps.  
• Employees at the top of pay scales would receive lump-sum payments in lieu of step increases.  
• Employees would receive wages sooner, moving across-the-board increases from July to April.  
• Employees would save up to $3,000 annually on medical plan costs through a combination of subsidies and caps on premium increases, providing protection against rising health care costs. 
• Wage increases for 2026 would apply retroactively to April—three months earlier—providing employees with additional back pay following ratification.  

By expanding immediate financial support through increased ratification bonuses and accelerated pay progression, the proposal aimed to put more money in employees’ pockets more quickly after ratification.  

Complete breakdown of UC’s new offers:  

Compensation 

• Annual across-the-board increases:  
• 5% increase in April 2026, retroactive after ratification 
• 4% increase in April 2027 
• 4% increase in April 2028 
• 4% increase in April 2029 

Other Compensation:  

 Shift Differentials: Effective within 90 days of ratification, guaranteed minimum Evening and Night shift differential for eligible classifications will be $1.25 per hour.   

Step Increases/Adjustments 

• 2% in 2026 
• 2% in 2027 
• 2% in 2028 
• 2% in 2029 

Combined with the 5% wage increase already provided in 2025, and UC’s new proposal to make those increases retroactive to April 2026 rather than July 2026, these wage increases (with compounding) amount to more than 34% in total pay growth through 2029 

Employees Above the Pay Range: Some employees already earn more than the top of their current pay range. Because they cannot receive regular pay scale increases, UC is proposing a lump-sum payment each year equal to the across-the-board raise provided that year. 

Employees at the Top Step: Employees who are already at the highest step of their pay scale and can no longer move up steps would receive a lump-sum payment equal to the value of moving up one step (approximately 2%). 

Employees Earning Around $25 per Hour:  

• Any pay steps below $25/hour would be removed. 
• Pay scales would be reorganized, starting at $25/hour. 
• Employees would be placed into the new pay scale based on their current hourly rate. 
• Employees who were earning less than $25/hour prior to July 2025 would move to the new starting step, and annual across-the-board rate adjustments would apply to the new step structure. 
• Employees would still receive the April 2026 wage increase and the July 2026 step increase after being placed into the updated pay scales. 
• Updated pay scales would include at least eight steps, creating more opportunities for future pay progression. 

For Employees with 20+ Years of Service:  $1,000 longevity bonus language from LBFO starting in July 2026.  

Health Care Costs 

• 5% cap on annual increases to Blue & Gold HMO premiums, plus monthly subsidies (see table below) 
• 7.5% cap on annual increases to Kaiser HMO premiums, plus monthly subsidies (see table below) 
• Subsidies would save employees as much as $3,000 annually on health care costs. 

Additional Benefits

AFSCME-represented employees will continue to receive: 

• Guaranteed retirement benefits through the UC Retirement Plan 
• Paid vacation, sick leave, holidays, and family and medical leave protections 
• UC-paid dental and vision coverage 
• One floating holiday 
• Life and disability insurance benefits 

Housing 

UC recognizes that housing affordability remains a challenge for many employees and communities across California. UC’s bargaining proposals have focused on direct employee compensation and affordability measures, including wage increases, bonuses and protections against health care cost increases, intended to provide employees with greater financial flexibility. 

This proposal focuses on providing employees with real financial support they can count on. It includes guaranteed raises, yearly step increases, immediate cash payments, and protections against rising health care costs. The proposal provides steady pay growth and affordability protections designed to help employees now and over the long term. The proposal also focuses on lower-paid employees by providing additional steps on structures impacted by the increase to $25 an hour last year, while keeping health care costs more affordable. AFSCME has not accepted UC’s offer.

AFSCME and UC will reconvene next Tuesday, May 12, and Wednesday, May 13, to continue negotiations. We remain hopeful of reaching a resolution.  

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