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July 26, 2022 Bargaining Report

Where Things Stand. As discussed last week, after waiting nearly one full month for CalHR to respond to CASE’s offer from mid-June, CalHR finally responded with their prior offer from June and the message that the offer was all there was in the pot for Unit 2. As legal professionals, your Bargaining Team has ample experience dealing with tough negotiators who issue hard lines, but we have trouble believing CalHR’s assertions, especially given developments in other bargaining units (see below). 

And so, your Bargaining Team continues to present evidence of Unit 2’s gnawing vacancy issues and the state’s need to take seriously the impacts to Californians if CalHR does not act now to address recruitment and retention issues (not to mention inflation and the abysmal salary lag compared to our government sector counterparts). CASE demands and deserves an offer that provides improved salary, a meaningful paid family leave benefit, and corrects the salary relationship between Attorneys and ALJs.

Meanwhile, At Other Tables: Over the past several weeks, two of the 6 state bargaining units at the table this year reached agreements with CalHR. While each unit bargains independently, it’s important to view our negotiations within the context of outcomes in other Units. 

  • Unit 13 – Stationary Engineers
    • This small unit of about 1000 members works on building environmental systems and other equipment at state facilities. About 70% of Unit 13 employees are at the top step of their classification’s pay range (the figure is far lower for Unit 2). Sacramento Bee coverage references a 22% vacancy rate in Unit 13 jobs. 
    • They agreed to a 3-year contract providing a 2.5% increase in 2022, a 4% increase in 2023, and a 4% increase in 2024 to the top step of pay ranges, rather than a general salary increase (GSI) for all unit members.
    • Unit 13 also agreed to a “Workforce Stability Stipend” – a non-PERSable incremental bonus totaling $3000 payable incrementally based on qualifying pay periods through the term of the contract. 
  • Unit 18 – Psychiatric Technicians
    • This unit of about 5500 psychiatric technicians work with patients within secured facilities at state hospitals across California. About 76% of Unit 18 employees are at the top step of their classification’s pay range. As noted, the percentage of Unit 2 legal professionals at the top step of their salary range is far lower than Unit 18’s. Sacramento Bee coverage puts their vacancy rates at between 17% and 22% depending on the hospital. 
    • They agreed to a 3-year deal providing a 2.5% GSI in 2022, and then 4% increases in 2023 and in 2024 to only the top step of pay ranges. 
    • The agreement also includes $1500 retention stipends for all unit members and a set of “wellness stipends” provided incrementally over the term of the contract up to $2400. Employees also will receive between $200 and $400 monthly differentials based at which hospital they work.
    • The agreement also includes a longevity differential starting with 2% after 17 years of service, maxing out at 5% at 25 years. 

What’s the Prognosis? In terms of whether the Governor will meet this moment: still unknown, but time is running out. The CASE Bargaining Team remains committed to staying at the table until CalHR significantly improves its offer. Among the factors impacting negotiations:

  • Vacancy Rates: High Unit 2 vacancy rates not only negatively impact employee morale, but also impede the state’s ability to provide vital protections for Californians. 
  • Competition: We know vacancy rates remain high because local and federal governments can draw talent from the state with higher pay and better benefits – like paid family leave. 
  • The Clock: The Legislature leaves town August 31 and won’t be back to get much done before January, 2023. We were given an arbitrary July deadline by CalHR, but our sources and historical experience tell us that deals are routinely reached in August – even late August.  Not reaching a deal can have consequences beyond simply not receiving needed salary increases. For example, a deal reached in the new year is less likely to be retroactive to July 1 of this year – retroactivity being a commonly requested term of an agreement when a successor MOU is reached after the expiration of the prior MOU. Any new benefits that CASE may be able to secure would not start until a deal is reached, delaying potential benefits like paid family leave. Also worth considering: new consolidated health benefit rates are generally part of MOUs. They need to increase to offset increases to insurance premiums which take effect January 1. Increased health benefit premiums impact members’ bottom line.

So, You’re Saying in a Record Surplus Year, Post-Furloughs, the State Refuses to Significantly Address Our Well-Documented Salary Lag

We are on a short timeline, and it’s not over, but the State’s message so far has been clear that they are not interested in even addressing current, historic inflation within any one year of the next MOU.  The Bargaining Team is keeping the pressure on at the table and elsewhere to ensure CalHR hears your needs loud and clear. The numbers presented so far haven’t addressed your needs and the Team remains committed to holding the line. 

CASE Members make the ultimate choice. If the Bargaining Team receives an offer from CalHR that is worthy of your consideration, CASE Members (and only members) can vote for or against ratifying a new MOU. Ratification means Unit 2 is under new contract terms for a duration negotiated by the parties. Rejecting an agreement sends the parties back to the table for further negotiations.  Should CalHR continue along the path it has chosen thus far, we should prepare to band together and weather the storm: meaning more work, more bargaining sessions, and even job actions into next year to show that we stand committed to our goals.  Enough is Enough. 

Reminders: Here are two things you can do today to help make the case for CASE. The team is back at the table next week and depending on progress, you may see more calls to action – stay tuned:

  • Sign our petitionAdd your name to the public call for the salary and benefits needed to keep Unit 2 positions filled and Californians protected. 
  • Amplify member stories on social media: Follow us on social and promote the vital services CASE members provide to Californians by retweeting or sharing posts on Twitter, FacebookLinkedIn, and Instagram

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