The 2025-26 Budget: Concession Bargaining

May 19, 2025 - Collective bargaining between the Governor and the state ’s rank-and-file employees (organized into 21 bargaining units) is governed by the Ralph C. Dills Act (Dills Act). The product of negotiations at the bargaining table is a labor agreement referred to as a memorandum of understanding (MOU).
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - The administration ’s fiscal estimates indicate that nearly 1,400 rank-and-file and nearly 500 excluded employees have more than 18 years of service and currently receive a seniority payment. The administration estimates that the higher tiers for employees with 27 or more years of service would apply to 180 rank-and-file employees and 80 excluded employees, increasing annual state costs by about $2.2  million.
https://lao.ca.gov/Publications/Report/4920

MOU Fiscal Analysis: Bargaining Unit 10 (Professional Scientific)

Aug 14, 2024 - The disagreement primarily stems from union-raised pay equity concerns between two sets of employees: (1)  between Unit 9 (Professional Engineers) and Unit 10 rank-and-file workers and (2)  between unit 10 rank-and-file workers and their supervisors.
https://lao.ca.gov/Publications/Report/4918

Unit 9 (Professional Engineers) MOU Analysis

Aug 25, 2022 - The costs discussed above are only those associated with rank-and-file employees. Many of the compensation increases likely would be extended to managers and supervisors to avoid “salary compaction ” (where rank-and-file pay increases faster than managerial pay).
https://lao.ca.gov/Publications/Report/4620

Unit 2 (Attorneys) MOU Analysis

Aug 25, 2022 - The costs discussed above are only those associated with rank-and-file employees. Many of the compensation increases likely would be extended to managers and supervisors to avoid “salary compaction ” (when rank-and-file pay increases faster than managerial pay).
https://lao.ca.gov/Publications/Report/4619

MOU Fiscal Analysis: Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 (SEIU Local 1000)

Sep 7, 2023 - Local 1000 represents about one-half of the state ’s rank-and-file employees. As of July 1, 2023, Employees represented by Local 1000 work under the terms and conditions of an expired memorandum of understanding (MOU).
https://lao.ca.gov/Publications/Report/4799

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

May 30, 2018 - When rank-and-file pay increases faster than managerial pay, “salary compaction ” can result. Salary compaction can be a problem when the differential between management and rank-and-file is too small to create an incentive for employees to accept the additional responsibilities of being a manager.
https://lao.ca.gov/Publications/Report/3847

MOU Analysis: Unit 10 (Professional Scientific)

Jan 30, 2023 - The disagreement primarily stems from union-raised pay equity concerns between two sets of employees: (1)  between Unit 9 and Unit 10 rank-and-file workers and (2)  between unit 10 rank-and-file workers and their supervisors.
https://lao.ca.gov/Publications/Report/4665

MOU Fiscal Analysis: Bargaining Unit 2 (Attorneys and Hearing Officers)

Aug 29, 2016 - This new classification would be a rank-and-file classification for employees who meet yet-to-be-established qualifications —likely based on the number of years of experience as a workers ’ compensation judge.
https://lao.ca.gov/Publications/Report/3495

MOU Fiscal Analysis: Bargaining Unit 18 (Psychiatric Technicians) [Publication Details]

Aug 28, 2006 - We estimate that total compensation costs (including benefits) for Unit 18 rank and file would total about $435 million (up 3 percent from the prior fiscal year) in 2006-07 and $460 million (up 6 percent) in 2007-08 under the proposed MOU.
https://lao.ca.gov/Publications/Detail/1514