University of California Human Resources and Benefits

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UC Offers to Increase SX Minimum Wage to $13 an Hour by 2011

On Monday, July 28th, UC presented AFSCME with an improved package proposal that would provide a minimum of $16.6 million towards increases for service unit employees over the next twenty eight months. Included in this offer is a proposal to raise the minimum hourly salary for service employees from $10.28 an hour to $13 an hour over this time period.

The university's most recent proposal includes the following:

WAGES:

Year One - Worth approximately $8.7 million or 4%

Increase minimum rate to $12/hour

Transition to step salary structure

Local equity proposals

Year Two - Worth approximately $5.4 million or 2.4%

Increase minimum rate to $12.50/hour

Step increase for employees already paid at or above $12.50/hour

Meet and confer on an across-the-board increase if the Governor's Compact is funded and there are no budget reductions.

Year Three - Worth approximately $2.5 million or 1.1%

Increase minimum rate to $13.00/hour

Meet and confer on across-the-board and step increases

HEALTH CARE BENEFITS: The same high quality health benefit plans offered to all other UC employees in which lower paid employees pay lower monthly premiums than other staff. UC's last proposal outlined conditions for possible reopeners on benefits as well;

RETIREMENT: UC employees have not had to contribute toward the cost of their pension benefits - considered the gold standard by many - for over 17 years due in part to strong investment performance. UC's last proposal outlined conditions for possible reopeners on retirement as well.

The union did not provide a counter proposal to the university's offer during this week's bargaining sessions; however, the university continues to work hard to settle these negotiations and remains hopeful that the parties will be able to reach agreement on a new contract for UC service employees through compromise from both sides.

For more information, please visit the bargaining update website.