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 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

Unit 8 (Firefighters) MOU Analysis

Aug 26, 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/4621

Collective Bargaining: Assessing Proposed Employee Compensation Increases

Mar 20, 2020 - Background Legislature ’s Role in Establishing Rank-and-File State Employee Compensation Legislative and Employee Ratification of Labor Agreements Is Final Step in Collective Bargaining Process. Compensation for rank-and-file state employees —constituting about 80  percent of the state workforce —is established through the collective bargaining process under the Ralph C.
https://lao.ca.gov/Publications/Report/4206

MOU Fiscal Analysis: Bargaining Unit 18 (Psychiatric Technicians)

Jan 9, 2020 - To avoid salary compaction between rank-and-file and managerial classifications, the administration typically provides excluded employees comp ensation increases (subject to legislative appropriation) comparable to what is provided to rank-and-file employees pursuant to an MOU.
https://lao.ca.gov/Publications/Report/4134