DPA - Labor Relations - State Bargaining Update

May 18, 2006

Governor signs new contract with State attorneys union

Governor Schwarzenegger today signed a new two-year contract agreement between the State and the union representing attorneys and hearing officers (bargaining unit 2).

The agreement, announced October 21, 2005, was approved by the Legislature last week (AB 146, Nunez). It runs from July 1, 2005, through June 30, 2007. Employees in this unit have been working without a contract since July 2, 2003.

Under the terms of this new agreement, the roughly 3,200 employees it covers will receive a 2.5% cost-of-living adjustment retroactive to July 1, 2005, and another 3.4% COLA effective July 1, 2006.

Employees will pay an additional 1% of salary toward pension costs beginning July 1, 2006. New employees will be covered by a new pension formula that's based on their highest three-year average salary. The formula for current employees will continue to be based on their single highest year salary.

Health benefits were also modified: The State will raise its contribution toward the employee's premium, but it will remain at that amount for the contract's duration. The new employer contribution amounts (which apply to health, dental, and vision benefits) will be $365/mo. for single-party coverage, $696/mo. for two-party, and $906 for family coverage. These new amounts will be retroactive to January 1, 2006.

New employees will be eligible for the full contribution amount for dependent health coverage after completing their first two years of State employment. The State will contribute half the normal amount for dependents during the first year and 75 percent during the second year.

In addition to the COLAs, the contract addresses recruitment and retention difficulties in certain civil service classifications: the starting salary for new attorneys with less than one year of legal experience will rise from $3834/mo. to $4410/mo., retroactive to July 1, 2005, and the top salary for Attorney III and IV positions will be raised 5%, effective July 1, 2006.

DPA creates and administers compensation, benefits, training programs, and the classification plan, and advocates for the interests of the State employer.