Three California State University unions reach labor agreements. What raises did they win?

The California State University announced Thursday that it reached tentative multi-year contract agreements with three unions that represent more than 26,000 employees across the system’s 23 campuses.

“Throughout the collective bargaining process, the CSU has been committed to increasing salaries for our employees in a fiscally sustainable manner that ensures we can continue to deliver on our mission of serving our diverse and talented students,” said CSU Chancellor Mildred García. “We thank our labor union partners for negotiating with us to achieve these goals.”

The largest union to reach a deal was the California State University Employees Union, CSU’s affiliate of the Service Employees International Union, which represents close to 16,000 workers. Members include administrative and academic support staff, custodians, nurses and medical technicians.

CSUEU’s three-year agreement would provide 5% raises in 2023 and 2024, with the raises retroactive to July 1 of this year.

Starting Oct. 1, 2025, the union would move to a new 20-step merit system where salaries are determined based on the years of service an employee has completed. Each step up comes with a 2% raise. CSUEU staff indicated that each employee’s raise in the third year would vary greatly depending on how far behind their salary step they currently are.

“This tentative agreement establishes an equitable salary structure with steps, which will help address the University’s recruitment and retention crisis,” wrote Catherine Hutchinson, CSUEU president, in a statement Thursday afternoon. “Pending ratification, we believe this agreement raises the bar and paves the way for our other union siblings across the system.”

The United Auto Workers Local 4123 represents about 10,000 academic student employees. The union earned a two-year deal that awards them 5% raises each year.

The Statewide University Police System, which represents about 330 CSU police officers, reached a three-year deal that provides 5% raises in 2023, 2024 and 2025.

Step-based raises mark big win for CSUEU. What about other unions?

CSUEU, along with Teamsters Local 2010 and the Academic Professionals of California, pushed hard for the reinstatement of a step-based raise system that CSU employees once enjoyed. The CSU Board of Trustees eliminated salary steps for non-faculty staff in 1996, ending decades of seniority-based salary raises.

The unions pointed to a compensation study of CSU’s non-faculty staff released last April. The $2 million review, state-funded and jointly commissioned by the CSU and its unions, found that workers’ salaries failed to keep pace with the private sector and institutions of higher education in California and on the west coast.

The consulting firm Mercer, which conducted the analysis, found that the average non-faculty staff member at CSU earns 12% below market rate. Some jobs, such as those in hospitality and guest services, are as much as 20% below comparable positions elsewhere.

The solution Mercer recommended? Implement a step-based salary structure so workers can reach their market-rate salaries within five years.

The union rejected CSU’s original step proposal earlier this year. It’s unclear how the plan in the current tentative agreement differs from the first offer.

“The CSU proposal does little-to-nothing to establish longevity or stability for the workforce that serves students and faculty,” wrote Hutchinson in a statement back in March. “One key recommendation from the Mercer salary study, commissioned by the CSU, is to create a steps system that gets employees to a competitive pay level in five years. Under the CSU proposal, workers will be chasing this elusive goal for the rest of their tenure at the University.“

As a tradeoff for the raises, the CSUEU tentative agreement allows the university to raise parking charges by $1-$2 per month, depending on the fiscal year. The union also included a clause that allows them to return to negotiations if another union receives more than a 5% raise in fiscal years 2023-24 and 2024-25.

This story was originally published October 13, 2023 at 5:00 AM.