Most state employees in Oregon will see bigger paychecks and expanded benefits next February under tentative labor agreements reached between the state and its two largest unions.
After months of negotiations, state officials agreed to give 6.5% cost-of-living raises over the next two years to members of the Oregon chapters of SEIU and AFSCME, which represent the bulk of the state’s 45,000 full-time workers.
The state also agreed to add an additional salary classification for longtime workers who have already maxed out their pay. Employees who have worked for the state for at least 10 years will automatically enter the new classification and receive additional pay increases.
Members of both unions will vote to ratify the agreements in the coming weeks. If approved, the contracts will go into effect at the end of August.
Although union leaders had initially advocated for cost-of-living increases upwards of 10%, they said the pay bumps will help state employee salaries keep pace with inflation and rising costs.
“This contract will help to close that gap, but it’s still imperative Oregon continues to invest in our state workforce to ensure service needs around the state can be met and to ensure that state workers are able to provide for themselves and their families,” Jade McCredy, chief negotiator for AFSCME’s bargaining team, said in a statement.
Bryanna Duke, spokesperson for the Department of Administrative Services, which oversees labor negotiations, did not respond to multiple requests for comment or emailed questions about the bargaining process.
Under the agreement, union members will receive pay increases of 2.5% next February and 4% in early 2027. The unions also negotiated slightly higher pay differentials for employees who work in inclement weather or hazardous conditions.
Additionally, the agreements would help more state workers work remotely full-time and make it more difficult for agencies to require employees to work in person.
One of the most significant provisions is a state-proposed transition from monthly to biweekly paychecks starting in July 2027. The state has a poor track record implementing such changes. Earlier this year, the state agreed to pay $15 million to thousands of former and current state employees who experienced issues with their paychecks after the state switched to a new payroll system in 2022.
In the settlement agreement, the state acknowledged that it is still addressing errors in its payroll system. Switching to biweekly payments will help fix those issues, the state said in a July letter of agreement.
“The state believes updating these practices through structural changes will eliminate the current issues with Workday Payroll and improve the transparency, predictability, and accuracy of employee pay,” the letter states.
Union leaders are concerned that the transition will cause delays or errors in employees’ paychecks. Both unions successfully negotiated various provisions to minimize the effects of any unintended consequences, such as a one-time $1,700 payment to all workers who switch to biweekly paychecks in July 2027 and increased training for employees and managers on payroll practices.
“We spent a lot of time making sure that, as the state tries to make this change, that workers are centered in that change,” said Melissa Unger, executive director of SEIU Oregon. “Last time, that did not happen.”
— Carlos Fuentes covers state politics and government. Reach him at 503-221-5386 or cfuentes@oregonian.com.
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