[Msoadm] Implementation of Wage Increases, Health Care Insurance Premium Credits, and other terms for AFSCME-Represented Employees

[Mariela Bridges]

[image: image.png]



July 16, 2025



To:
Business Officers

From:

Employee and Labor Relations

Re:

Implementation of Wage Increases, Health Care Insurance Premium Credits,
and other terms for AFSCME-Represented Employees



Following 16 months of contract negotiations with the union, UC implemented
the terms of its last, best and final offer for its 37,000 employees
represented by the American Federation of State, County, and Municipal
Employees (AFSCME), effective July 1, 2025. These terms include raising the
minimum wage, providing across-the-board salary increases, and offering
healthcare premium credits, despite ongoing uncertainty around federal
actions and funding cuts.


Attached is the *AFSCME Select Implementation Update* letter which has been
distributed to AFSCME-Represented employees.


Also attached is a *Frequently Asked Questions for Supervisors *document issued
by UC Office of the President regarding UC's decision to implement wage
increase and benefits for AFSCME-represented employees.


*Significant changes include:*



   - Salary increases for AFSCME-represented UC team members to $25 an hour
   or by 5%, whichever amount benefits the employee more.


   - Medical insurance premium credits for employees in Pay Bands 1 and 2
   (nearly 97% of UC’s AFSCME-represented employees) who choose Kaiser or UC
   Blue & Gold HMO.  To offset the employee contribution, employees in Pay
   Band 1 who elect an HMO will receive a $125 monthly subsidy and employees
   in Pay Band 2 who elect an HMO will receive a $100 monthly subsidy.
   Subsidies will be reflected as a reduced monthly contribution amount
   deducted from affected employee paychecks. This new structure is reflected
   in UCPath and in *ALEX <https://start.myalex.com/uc/>, and replaces the
   previous health insurance premium cap structure.*


   - Clarification of grievance procedures, leave time (including expanded
   sick leave), and meal and rest periods.



You may find links to *answers to Frequently Asked Questions
<https://ucnet.universityofcalifornia.edu/labor-news/afscme-2025-implementation-frequently-asked-questions/>,
along with the notice to AFSCME-represented employees
<https://ucnet.universityofcalifornia.edu/labor-news/uc-implementation-afscme-062525/>,
on UCnet.*

If you have any questions regarding this message, please contact Employee
and Labor Relations at labor.relations at ucr.edu.



Mariela Bridges

Employee and Labor Relations Assistant - Human Resources

Central Human Resources | Hinderaker Hall

900 University Avenue, Riverside, CA 92521

(951) 827-3641 | mariela.bridges at ucr.edu


      https://hr.ucr.edu/



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