Bargaining Update, October 2008, Issue 33

Bargaining Update - October 21, 2008

On October 19, UC and AFSCME reached a tentative agreement on a new, five-year labor contract for UC's 11,000 patient care employees. Patient care employees will have the opportunity to vote on the agreement the week of November 10^th. When ratified by the union, the agreement will be effective from the date of ratification through September 30, 2012. Highlights of the tentative agreement include:

· WAGES: $127 million in total wage increases over five years, including over $18 million in wage increases ranging from 4 to 15 percent in the first year. Increases over the length of the contract equal to a minimum total of 26% for eligible employees.

Year 1

Upon ratification – Increases between 4-15%

Lump sum payment equivalent to at least 4% back to mid-October 2007

120 days from date of ratification – Transition to step structure that is based on experience with lump sum payment equivalent to the percentage increase back to 9/1/08.

Year 2

1/1/09 – Minimum of 2.5% increase

7/1/09 – Minimum of 2.5% increase

7/1/09 – Step increase for eligible employees

Year 3

1/1/10 – Minimum of 3% increase

7/1/10 – Step increase for eligible employees

Year 4

1/1/11 – Minimum of 3% increase

1/1/11 – Minimum of 1% market equity pool

7/1/11 – Step increase for eligible employees

Year 5

1/1/12 – Minimum of 3% increase

1/1/12 – Minimum of 1% market equity pool

7/1/12 – Step increase for eligible employees

No later than 9/30/12

9/30/12 – Guaranteed minimum rate of pay of $14.50/hour by the end of the contract

· HOURS OF WORK: Beginning October 1, 2010, all employees will receive overtime for any work after shift, and double-time pay after 12 hours

·HEALTH CARE AND RETIREMENT BENEFITS: PCT employees would continue to be offered the same health and retirement benefits as other UC employees, at the same cost, with UC paying the vast majority of the benefits costs. Due to a special one-time subsidy UC is employing for its 2009 health benefits, UC employees will see lower premium increases than they otherwise would, with some employees seeing decreases in their net monthly medical insurance premiums. If health care premiums increase beyond a certain percentage or if UC requires employee contributions to the pension plan then UC and AFSCME will bargain.