UC Expands AFSCME Offer with 32.3% Pay Growth, $1,000 Bonuses, and Health Care Cost Caps

The University of California has presented a revised contract offer to AFSCME-represented patient care and service workers that directly responds to employee needs, with new financial incentives, stronger wage growth, and expanded health care protections.

The two parties have been negotiating a new contract since January 2024. Today's proposals build on previous offers: in addition to a proposed 32.3% wage increase, total wage growth over the life of the contract (including last year's 5% increase). Further, UC is proposing up to a $1,000 bonus for each 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.

"We recognize the value that AFSCME-represented patient and service team members bring to UC and want to ensure that they feel supported and valued," said Missy Matella, Associate Vice President for Systemwide Employee and Labor Relations. "We have made significant movement to strengthen our offer, including meaningful increases to wages and expanded opportunities for long-term growth, and remain committed to reaching an agreement as quickly as possible that truly reflects the essential contributions our employees make to UC every day."

To address 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, and includes monthly premium offsets to further reduce costs.

Over the course of bargaining, UC has continued to increase its economic terms, including improving across-the-board wage increases (e.g., 2026 increased from 4% to 5%) and advancing its latest package. In total, UC has made six economic counterproposals, compared to four from AFSCME, and has continued to put forward updated offers to move the process toward resolution as quickly as possible.

Bargaining is ongoing, with several tentative agreements already reached, and the parties will meet again on April 21. Reaching an agreement would provide employees with greater certainty and access to these benefits as soon as possible.

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