Yesterday, we started negotiations with an opening statement by our union’s Executive Director, Brian Rudiger. He described our desire for fair wages and benefits, the diversity of our membership, and our commitment to provide quality services and build strong communities across Oregon.
Here are the union and management opening proposals:
Our Union Proposal
Management’s Proposal to Us
July 1, 2017 — 2.5 to 4% based on consumer price index (CPI)
July 1, 2018 — 2.5 to 4% based on consumer price index (CPI)
No cost living increase in either year of contract
Steps in each year of the contract
Steps in each year of the contract
Maintain current plan:
1% premium share for lower cost plans
5% premium share for costlier plans
Establish 7% premium share for costlier plans
Reward employees who are “topped out”
Minimum monthly salary of $2600/mo
The state’s proposal also reinforces why our bargaining team pushed to protect steps for four years and buy out the PERS pick-up in our 2015 bargaining: for all other state workers, management is now proposing a one-year step freeze with a small cost-of-living adjustment, and a buy-out of the PERS pick-up at only 6% (as opposed to the 6.95% we won in 2015).
The proposal on the table from the state is insufficient and does nothing to address the needs of the state workforce. It is important to note that Management’s proposal is contingent on the legislature passing Governor Brown’s recommended allocation for state employee compensation. With a $1.6 billion shortfall, we can’t sit back and expect a better budget to materialize. The best way to ensure a good contract and quality services is to contact your legislator right now or sign-up to participate in a Lobby Day.
Our next bargaining sessions are April 25th and 26th.
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We are excited to announce that 95 percent of voting state worker members said YES to ratify their new contract! This means that all provisions of the contract will go into effect as soon as both sides sign the new agreement. This includes the day after Thanksgiving as a new holiday this November!
Speaking with one voice on holding the line on health care is an example of collective action making a real difference. Together, we participated in statewide info pickets, held unity breaks, signed petitions for a fair contract, and talked to managers about the importance of a fair deal. We held the line on the 95 percent/5percent premium share and expanded the number of plans at a 99 percent/1percent premium share. Click here for a complete summary of contract changes.
At the same time we were voting on historic gains in our contract, there was an attack on our ability to collectively work for such gains. The far-right, conservative, anti-worker, Washington-based Freedom Foundation announced its intention to “make life miserable” for our union. They filed a suit aimed at taking away our voice to advocate for better working conditions and quality services through our union. Now, more than ever, it’s critical we tell groups like this that we stand united in our efforts to lift our members and all working people, no matter their attacks. In our contract vote, thousands of us committed to each other to stand united. If you haven’t already, please take a moment and click here to recommit to stand with your union sisters and brothers.
While our contract has been ratified, Higher Ed workers continue to have an unfair health care offer, anemic cost of living adjustments and take aways on the table. Please show your solidarity and stand with Higher Ed workers: click here to sign the support petition – so we can show we are truly in it together.
Our member-elected SEIU 503 state worker bargaining team has reached a tentative agreement with the state!
We more than held the line on healthcare. Starting in January 2016, we will move closer to fully paid healthcare: Most plans will go to a 99 percent/1 percent premium share, while the most expensive plans will stay at 95 percent/5 percent.
There will be a 1.48 percent cost-of-living raise on December 1, 2015 and a 2.75 percent cost-of-living raise on December 1, 2016.
Retirement security for all state workers. Protecting PERS has consistently been a top priority for our members. After a great deal of work by our bargaining team, the State agreed to buy out the 6 percent pick-up on 11/1/16. For more information on how the buy-out of the pick up will work, see our FAQ or video.
The day after Thanksgiving will be a new holiday for everyone! We’ve emphasized with the state over the last several bargaining cycles the importance of work/life balance and the work our members do in their communities. Our team landed on an extra holiday, which will give people more time with family and community.
We agreed to a four-year contract, which means that step increases are secured for the next four years. We will bargain again in two years only on differentials, cost-of-living adjustments, and health insurance. This will allow us to focus on workplace issues and work toward a 2017-2019 state budget that lifts up everyone by adequately funding services for all Oregonians and fair wages and benefits for workers.
On Saturday, July 18, our elected bargaining delegates will meet to review the tentative agreement and make a ratification recommendation. If you are interested in attending the conference, click here for the details and registration. Following the bargaining conference, we will hold a series of in-person ratification vote meetings at our largest worksites and in regional meetings around the state, in addition to our traditional mail ratification vote. Full summaries of the contract changes will be available at these meetings and mailed to members.
State workers have said very clearly these last few months that we won’t go backward on healthcare. Healthcare was the issue at the heart of the strike vote in 2013; because of state workers standing strong, we are moving forward. Our unity on issues like healthcare—along with our work electing allies who are willing to join us to make sure everyone has a Fair Shot—gave us the bargaining power to gain ground on healthcare, protect our retirement, and lift wages for everyone!
Congratulations to all state workers on reaching a strong tentative agreement!
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What is the 6 percent pickup and how did it come to be?
Prior to 1979, state workers paid 6 percent of our wages towards PERS. In 1979, during bargaining, we accepted a proposal from the State to pay the 6 percent into our PERS accounts, which increased member take-home pay even though wage rates remained the same because members no longer had to pay the 6 percent out-of-pocket.
What did we reach a tentative agreement on?
Rather than the state continuing to “pick up” the 6 percent by paying it directly into our PERS accounts, beginning Nov1, 2016, these funds will be transferred back to the employee’s pay and then transferred, as a pre-tax deduction, into the employee’s PERS account. Any additional payroll tax, and increased PERS contribution, incurred as a result of the “buy back” will be covered by an additional .95 percent paid by the state into the employee’s pay. While this will increase employee’s base wages by 6.95 percent, the intent of the buyout is to be zero cost to employees.
How would this benefit us?
There are a number of ways this would be in our best interests. First, it would be an additional benefit for OPSRP members (those hired on or after August 29, 2003, also known as Tier 3), as it would translate into a higher average final salary. Currently, Tier 1 and 2 members already have the 6 percent pick-up counted toward their final average salary, but OPSRP members do not.
In addition, pay and benefits that are based on your wage rate would increase; this includes IAP contributions, overtime, out-of-class and lead differentials, vacation payouts, and Social Security calculations. For example, if you work overtime or have a pay differential, this could put more money in your pocket.
Previous attempts to end the 6 percent pick-up would have resulted in an equivalent pay cut for all PERS members; this issue was a central cause of the 1995 strike by state and higher education workers in Oregon. Because we prevailed in striking down the recently passed PERS COLA cap in court, there have already been proposals to end the 6 percent pick up in a way that would not hold us harmless, but would instead entail some sort of pay cut (i.e. legislation allowing for negotiations over splitting the pick-up, or eliminating it altogether at our own expense).
Will this affect my take-home pay?
If you receive a shift or other differential, work overtime, or made other changes to your deductions you may be seeing an increase in take home pay.
It’s also possible that you’ll see a slight decrease in take-home pay if you participate in voluntary payroll deductions that are based on overall gross pay, which will increase. Examples of these voluntary, percentage-based contributions include the Oregon Savings Growth Plan, Long Term Disability, and Short Term Disability. If you participate in these types of programs, you are likely to see an increase in these deductions and ultimately the relevant benefits. In some instances, you can adjust the deduction to increase your take home pay. (This question was updated 11/30/2016)
If this doesn’t put more money in my pocket, why do it?
Besides the fact that the current system suppresses retirement income for OPSRP members, the Bargaining Team is making this proposal as a defensive measure aimed at protecting member retirement for the future.
Would the PERS buy back impact my ability to qualify for public assistance or increase garnishments or other payments I am required to make?
It’s not possible to speak to all circumstances. If you are impacted by an income-based benefit or payment plan, you’ll need to consult with whoever oversees your benefits or payments. Be sure to tell them this is a “pre-tax retirement benefit.”
Is this a new idea?
No. The idea of buying out the 6 percent has been discussed at bargaining tables and in the legislature for years. Many unions, including our fellow members at Portland Public Schools and most firefighter and law enforcement bargaining units, have already adopted a buyout because they saw it as being in their best interests. Our bargaining team believes this is the best way to secure our retirement.
This concept is a carry-forward from previous bargaining sessions and the current Bargaining Team recognized the time was right for winning this proposal. At the Bargaining Conference held on Sunday, January 25, this proposal was brought forward to the assembled delegates. The delegates in attendance understood the importance and supported moving this forward. Maintaining a secure retirement has remained a high priority when our members fill out bargaining surveys.
Timing is critical as we face huge attacks on Unions and public workers. These attacks are focused on collection of dues, the right to collectively bargain and the ability to have a secure retirement.
How would it work?
See chart above. In our tentative agreement, we start picking up the additional 6.95% on Nov. 1, 2016.
How would this impact my dues and other payroll deductions?
Any deduction based on a percentage of your wages would be impacted. On the income side, overtime, wage-based differentials, and vacation payouts would benefit. For example, if you make $40,000 a year and received a 5% pay differential, your differential would be calculated off of a 6.95% higher base wage resulting in an $11.58/month increase before taxes. Under the same $40,000 a year scenario, every hour of overtime would increase by $2.01 before taxes. Similarly, dues would go up a small amount: for every additional $100/month you earn, your dues would go up $1.70. For example, if you make $40,000 a year, your dues would go up $3.94 per month.
Would I be able to pay that money into a 401k of my choice or use it otherwise?
No. By law, the 6 percent must be paid into your IAP account either by the employee or the employer.
How will this impact my income taxes?
While the funds are part of your income, they are not reported in Gross Income for tax purposes. The deduction is handled on a “pre-tax” basis just as your portion of your insurance premium is handled; therefore, it will have a negligible impact on your income taxes.
For information on PERS, there is a wealth of information on the PERS website, including the following benefit comparison chart:
As a reminder, there are two big pieces of good news around our health insurance:
We will receive our cost of living adjustment (COLA) this month (3 months early!) – the 2% COLA will go into effect on Sept. 1, 2014 thanks to union contract language that puts money unspent on healthcare into our paychecks. This is a direct result of health care premiums going slightly down in 2015.
These steps forward are due to increased member activism around contract negotiations and healthcare, and to effective advocacy by our union PEBB representatives. Despite these gains, we still believe the state has a ways to go in improving our work environments so that we can all be healthier. We will provide updates as we make further recommendations to PEBB.
Your PEBB Member Advisory Committee (PMAC) Representatives
Keary DeBeck, Labor Chair for the Committee, Dept. of Justice
Cary Fardal, Oregon State Hospital
Wednesday Martin, DHS Vocational Rehabilitation
Shaun Parkman, Oregon Health Authority
Siobhan Martin, SEIU Staff Advisor
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Exciting news: two more wins coming out of our 2013 contract campaigns with the State and OUS!
As you know, healthcare has been and will likely continue to be a major point of contention in contract negotiations. In 2013, our bargaining teams negotiated two key provisions that would not only hold the line, but begin to regain some of the lost ground around healthcare. Today, we’re happy to report these victories have been realized:
1) Reducing the 5% premium share down to 3% for those members who select the lowest cost plan in their area, even if there’s only one plan to choose from. This necessitated at least 95% of members having more than one plan to choose from, and PEBB’s recent plan selections made this a reality. Not only does this put more money in members’ pockets but it also expands healthcare choices for members in rural Oregon. Click here to see which plan has the lowest costs in your county.(updated 7/30/2014, pdf download)
2) Moving up the effective date of the next cost-of-living raise (COLA) if healthcare costs come in below projections. Based on the rates recently adopted by PEBB, it now looks like the effective date of the COLA will be moved up at least to September 2014 (instead of the originally planned 12/1/14). We expect to know the exact effective date within the next week and will keep you updated.
These victories were possible because of the great power of members coming together to push for fairness, and from the aggressive and strategic work of our PEBB representatives in advocating for better healthcare quality and pricing. And none of this would have been possible without our strong voice in the Capitol, powered by the Citizen Action for Political Education (CAPE) program. Please click here to contribute to CAPE to strengthen our voice and enable future healthcare victories.
At a time when public sector workers are suffering enormous roll-backs to their healthcare, it’s exciting to see that we can work on positive solutions that bring down costs and share those savings with front-line workers.
Heather Conroy, SEIU 503 Executive Director
Keary DeBeck, State Worker Bargaining Co-Chair
Marc Nisenfeld, OUS Worker Bargaining Chair
Dan Smith, State Worker Bargaining Co-Chair
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The tentative agreement for the 2013-2015 union contract has been ratified by state worker members. At the ballot count August 17, with just under 5,000 ballots cast, 95% of voters approved the agreement.
We hope you share the pride we feel in the substantial improvements in this contract, as well as in the unity and action demonstrated by thousands of members. In pickets, purple-ups, strike preparations, and political participation in our communities, the halls of the Capitol and at the ballot box, we demonstrated to management and our fellow Oregonians that we are indeed all “In It Together.”
The next few years will continue to challenge us. There continues to be discussion of a special legislative session later this year to enact further PERS cuts. On the 2014 ballot, anti-union forces are putting forward measures that, if passed, would weaken our collective voice. As we navigate these challenges and prepare for contract negotiations in 2015, we must maintain the great spirit of solidarity—with each other, our clients, and all Oregonians—that propelled us to victory today.
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For months, state workers have been showing our fellow Oregonians what it means to be “In It Together.” In hundreds of actions culminating in an overwhelming strike authorization vote, thousands of SEIU 503 state workers sent a loud and clear message that we won’t back down until we have a fair contract.
Our work has paid off. Early this morning, we reached a tentative agreement with the state that we believe is just, returns us to a place of economic stability, and begins to address broader issues Oregonians face. While we all want and deserve more, we believe that together our campaign brought about the best agreement possible.
Some highlights of the agreement include:
Holding the line on 5% premium share, plus a pathway to a 3% premium share in 2015
Maintaining the low-wage worker and part-time worker healthcare subsidies
Cost-of-living raises of 1.5% effective Dec. 1, 2013 and 2% effective Dec. 1, 2014
End step freeze
No changes to the 6% pick-up
An end to furloughs
Healthy workplace improvements, including trauma training, a statewide healthy workplace committee, and enforcement options to address bullying.
More details will be available via email and at www.seiu503.org in the coming days.
Bargaining Conference: On July 27, elected bargaining delegates will come together in Salem to discuss the details of the tentative agreement.
Membership Vote: Following the conference, a ratification ballot together with a detailed explanation of the tentative agreement will be mailed to all state workers in SEIU. If you are not a member we encourage you to join with your coworkers and have your voice counted by returning the enclosed membership application with your ballot.
In a recent opinion piece in the Statesman Journal, SEIU 503 Executive Director Heather Conroy made the case that the fight for a fair contract is about more than ourselves–it’s about standing up for our clients, our communities, and Oregon’s middle class. We have been honored to help lead that charge as your elected bargaining team, and we look forward to continuing in that struggle with you.
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Our team has been back at the table for the last two days.
On Monday, we got some more movement from management. They’ve moved to 1.5% effective December on the COLAs, better language around contracting out, and they dropped their email ban proposal.
In addition to wages, we’re still a ways apart on the low-wage worker healthcare subsidy, selectives, and the step slide issue.
We’re hoping to reach settlement on a fair contract this week; however, we are preparing to exercise our power next week if need be. Please plan on joining a strike preparation meeting at your local field office this weekend. Offices will be open 9:00-6:00 both days.
We’re back at the bargaining table again tomorrow and will continue to push to get the best contract possible!
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The votes are in, the ballots are counted, and SEIU 503 state workers have given our bargaining team the authority to call a strike if necessary. Members voted by participating in dozens of strike authorization vote meetings around the state and by mailing in absentee ballots.
Our bargaining team meets with the State again on Monday, where we expect to have an earnest conversation about healthcare and cost-of-living raises, and we will continue to push the State to get Oregon’s money back from the contractors and Wall Street banks that ripped us off. Watch your inbox for a bargaining update Tuesday morning.
Although the bargaining team hasn’t called for a strike at this time, setting a strategic date is critical. The date of a strike determines how much impact we can have at the bargaining table as well as whether full-time workers can complete their 80 hours for insurance eligibility.
To achieve the most strategic strike date (if necessary), on Friday, July 12, our bargaining team filed a ten-day Notice of Intent to Strike with the Employment Relations Board. This notice is a placeholder to satisfy state labor law requirements, and would allow us to strike as early as July 22. It can be withdrawn if our team reaches settlement, changes the date of the action, or for any other reason.
“We would like to thank the thousands of members who voted on this important matter,” said Dan Smith, a clinical psychologist at Oregon State Hospital and bargaining team co-chair. “We take the responsibility you gave us very seriously, and we are proud to stand with you in holding the line for the middle class.”
Steve Demarest, Employment Department
Wayne Ground, DHS/OHA
Brant Johnson, Oregon State Hospital
Sandi Kalin, Department of Administrative Services
Noel Magee, Oregon Department of Fish and Wildlife
Rolando Ramirez, Oregon Youth Authority
Mike Scott, Oregon Department of Transportation
Mary Stewart, Department of Revenue
Heather Conroy, SEIU 503 Executive Director
Heather Blankenheim, SEIU 503 Staff
2015 Human Services Coalition Bargaining Team
Shamus Cooke, DHS - Portland
Wayne Ground – DHS, Salem –Central Table
Betty Holladay - DHS, Salem
Bruce Kennedy-Smith - DHS, Hillsboro
Rhonda Morgan, DHS - Gold Beach
Mary Perry, DHS - Portland
Martin Ramirez - DHS, Medford
Mike Roberts - DHS, Medford
Theresa Arndt – Employment, Salem
Steve Demarest - Employment, Portland –Central Table
Austin Folnagy - Employment, Klamath Falls
Tia Fraser - Employment, Beaverton
Jerry Rosenkoetter - Employment, Salem
Michel Miller - OHA, Salem
2015 Institutions Coalition Bargaining Team
Randy Davis – OSH, Salem
Cary Fardal – OSH, Portland/Salem
Jeff Hodson – OSH, Salem
Brant Johnson – OSH, Salem - Central Table
Jose Moreno – OSH, Salem
Kerry Rechiro – OSH, Salem
Doug Dryden – OYA, Oak Creek, Albany
Janet Ferris, OYA, Tillamook
Steven Guy, OYA, Maclaren, Salem
Rene Lopez, Pendleton Cottage, Pendleton
Rolando Ramirez, OYA Maclaren, Salem –Central Table
2015 ODOT Coalition Bargaining Team
Gail Boatman – DMV, Cave Junction
Dianna Honeycutt – DMV, Lana Ave HQ, Salem
Peggy Howard – DMV, Lana Ave HQ, Salem
Brandon Ferguson – Forestry, South Fork Forestry Camp
Jim Neuman – Forestry, Tillamook
Dave Wells – Forestry, Tillamook
Noel Magee – ODFW, Cherry St HQ, Salem –Central Table
James Reed – ODFW, Cherry St HQ, Salem
Tracy Thompson – ODFW, Vanderberg Ave, Corvallis
Mickey Varney – ODFW, Cherry St HQ, Salem
Patrick Hatfield – ODOT, 4040 Fairview Industrial, Salem
Craig Johnston – ODOT, Lawnfield, Portland
Craig Lankford – ODOT Astoria Drawbridge Donna McKeever – ODOT, Mill Creek Bldg, Salem
Mike Scott – ODOT, Grants Pass –Central Table
Steve Hernandez – Parks, Silver Falls
Dan Icklan – Parks, Cove Palisades
Peggy Rinck – Parks, N Mall Office Bldg/Winter St, Salem
2015 Specials coalition bargaining team
Mike Forrest, Ag, Salem
Roberta Laux, Ag, Salem
David Priebe, Ag, Salem
Carolyn Briggs, Blind Commission, Portland
Lloyd Perez, BOLI, Portland
Sandi Kalin, DAS, Salem - Central Table
Dan McKay, DAS, Salem
Steve Walsh, DAS, Salem
Jim Beck, DCBS, Portland
Dianna Janowski, DCBS, Salem
Michael Elliott, Education, Salem
Karen Harrison, Education, Salem
Sam Ko, Education, Salem
Desiree Brown, Justice, E Portland
Keary DeBeck, Justice, CCBC, Salem
Kathleen Lamar, Justice, CCBC, Salem
Chris Melgard, Justice, Robertson Bldg, Salem
Nita Goss, Medical Board, Portland
Dolores Vance, OHCS, Salem
Rachel Cummings, OSAC, Eugene
Mary Lang, PERS, Tigard
Susan Mundell, PERS, Tualatin
Millard Minor, Revenue, Salem
Flor Morales, Revenue, Salem
Jessyca Stafford, Revenue, Eugene
Mary Stewart, Revenue, Eugene, Central Table
Ann Reed, State Library, Salem
Matthew Garrett, Teachers Standards & Practices, Salem
Leah Rickert, Veterans Affairs, Salem
Susan Douthit, Water Resources, Salem
Ronald Kohanek, Water Resources, Salem
The Public Employees' Benefit Board (PEBB) is a labor-management board whose purpose is to provide high-quality benefits at a cost affordable to employees and the state. PEBB designs, contracts and administers medical, dental, life, accident, disability and long-term care insurance, and flexible spending accounts for state employees and their dependents. The Board also offers healthcare insurance options for retirees not yet eligible for Medicare and individuals in other participating groups.
Click here for more information about PEBB.
The Health Engagement Model (HEM) program is part of the 2012 health plan designed by the Public Employees’ Benefit Board (PEBB) as one of many actions to improve health and help stem the rising costs of health care.
Click here for more information about the HEM program.