The California State University Employees Union (CSUEU), which represents over 16,000 health care, operations, administrative and technical support staff of the CSU system has ratified a new three-year contract agreement with the California State University. The terms of the new contract run from July 1, 2006 to June 30, 2009. The CSU Board of Trustees approved the contract today during a special meeting of the Committee on Collective Bargaining held in order to expedite the retroactive pay increases for CSUEU employees.

Major issues addressed in the agreement include the following:

• 3% general salary increase for 2006/07 effective August 2006
• 1% service salary increase in each of three years
• Increase in rural health care stipend
• Changes in grievance procedures

CSU Chancellor Charles B. Reed thanked and congratulated CSUEU "for their hard work and commitment in negotiating and ratifying this agreement. The thousands of employees represented by the CSUEU are instrumental to the support and service of our universities, and we appreciate their valuable contributions to the success of all of our students."

The CSU and the CSUEU bargaining teams engaged in a meaningful and open dialogue over the issues to reach a three year agreement which includes prospective salary increases for 2007-2008 and 2008-2009 as well as this fiscal year. The CSUEU and the Chancellor’s Office will now work together to ensure that the prospective salary increases are funded by the legislature and the governor.

For a summary of the ratified tentative agreement please visit the California State University Employees Union Tentative Agreement (.doc).

In addition to the CSUEU’s agreement, the CSU has reached agreements or tentative agreements with seven other bargaining units, representing physicians, healthcare workers, administrative and technical support, academic support, trades and law enforcement. Mediation sessions however, between the California State University and the faculty union ended on Dec. 15 without the parties reaching an agreement. Both parties maintained their positions on all outstanding issues during mediation sessions. The parties will now move to fact-finding, which is the next step for impasse procedures under the Higher Education Employer-Employee Relations Act.

The CSU has made an excellent compensation offer that will benefit all faculty members and make their compensation more competitive. The salary offer (.doc) which was rejected by the union, includes a 24.5 percent salary increase to be paid over the next three years, and CSU absorbing the majority of the health premium increases with some employees paying a minimal increase, depending on the health plan selected over the life of the contract. The actual value of the CSU offer will be a 27 percent increase in salary during the next three years once the annual increases in the CSU offer are compounded.

The CSU wants to come to an agreement with the faculty union so its 23,000 faculty members can receive the salary and medical benefits they deserve. In the meantime, the CSU and the faculty union agreed to extend the terms of the current contract until January 31, 2007.