Dear colleague:

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This is to inform you of several changes you will soon see reflected in your upcoming paychecks. Specifically, UC is increasing your wages and your health insurance and parking rates are being aligned with what other UC employees are paying.

As you may know, UC’s most recent agreement with the American Federation of State, County and Municipal Employees (AFSCME) union expired on June 30, 2017, and UC has been negotiating with AFSCME for more than a year on a new contract for service employees. Unfortunately, AFSCME leaders have rejected what we believe are fair proposals.

Since all required phases of bargaining, including state-assisted mediation, have been completed, and because UC believes it has been too long since you have received a raise, 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 informed you previously, on April 6 UC presented AFSCME with a final settlement offer in exchange for a multi-year contract, and to finally bring negotiations to an end, that included:

  • 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.

When you will see changes in your paycheck

Pay increases will be 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 at ucnet.universityofcalifornia.edu/labor/bargaining-units/sx/contract.html for rates that apply to you.

Kaiser and Health Net Blue & Gold premiums, frozen at 2014 rates under the expired contract, 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 + child(ren)
Health Net Blue and 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 + child(ren)
Health Net Blue and 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 or ASUCLA employees) UCPath.

Sincerely,

Peter Chester

Executive Director

UC Systemwide Labor Relations