Union Negotiations

Penn State, Teamsters reach tentative four-year agreement

Leadership from Penn State and Teamsters Local 8, the union representing about 2,500 technical service employees across the commonwealth, have reached a tentative agreement on a new four-year contract. Local 8 leadership has informed the university that they are unanimously recommending ratification to their membership of the tentative agreement and will share more information with members in the coming days.  

For more information, visit Penn State News: Penn State, Teamsters reach tentative four-year agreement

The Union and the University met and continued to make progress on reaching an agreement.

The University increased its wage proposal to the following increases: 

• July 1, 2024 – 3.0% 
• July 1, 2025 – 3.0% 
• July 1, 2026 – 3.0% 

For context, the wage increases agreed to by the parties in the existing 2021-2024 contract were:

• July 1, 2021: 2.5% 
• July 1, 2022: 2.5% 
• July 1, 2023: 2.0% 

The University also made a proposal on health care benefits that includes eliminating the copay for telehealth benefits.

The University and the Union reached a tentative agreement on aligning holidays with the staff holiday schedule.

In addition, the Union and the University discussed a project to update how jobs are evaluated and assess the need for market increases in certain jobs.

The University and the Union also exchanged proposals on work schedules, temporary transfer, sick leave, training, severance and removing barriers to assigning work to technical service employees.

The parties are continuing to meet throughout the week.

The parties continued to discuss noneconomic issues.

The parties met today and exchanged proposals on various items including healthcare, the assignment of work, holidays, work schedules, temporary transfer, contracting out, severance and overtime. The union also informed the University that it will be conducting a strike authorization vote in advance of the June 30 contract expiration date. A vote for strike authorization is basically a poll of a union’s membership to ensure that any decision to strike rests with the majority of the members who cast a vote. A strong strike authorization vote does not necessarily mean a union will strike.

Penn State and the Union met again today and continued their discussions related to healthcare. The parties also discussed proposals related to the assignment of work, holidays, work schedules, contracting out, temporary transfer and severance.

In addition the Union made the following wage proposal:

• 32% increases over 3 years
• up to 50% in additional market adjustments on top of the 32% wage increases
• cost of living adjustments
• more than triple rate increase to shift differential
• increased on-call rate and revised hiring rate
• $3,000 ratification bonus

The parties met today and had productive discussions on proposals related to sick leave, work schedules, overtime, holidays, and Intercollegiate Athletics.

The University responded to the union’s proposals on schedules, temporary transfer, and severance. The University also offered an initial wage proposal which provides for the following wage increases:

• July 1, 2024 – 2%
• July 1, 2025 – 2%
• July 1, 2026 – 2%

This initial offer is intended to move the parties toward reaching a fair agreement. For context, the wage increases agreed to by the parties in the existing 2021-2024 contract were:

• July 1, 2021: 2.5%
• July 1, 2022: 2.5%
• July 1, 2023: 2.0%

In addition, the union and the University discussed continuing a project to update how jobs are evaluated and assess the need for market increases in certain jobs. The union gave counterproposals on holidays, work schedules, parking and overtime.

The next full bargaining session is scheduled for June 13.

Discussions today primarily centered on healthcare and other benefits. The University presented the union with a proposal offering two health insurance cost options based on the actual usage of employees and their dependents in the union health plan.  The first option retains the current percentage of salary contributions for the first year of the contract, with plan design changes (to co-pays, deductibles and co-insurance that people pay when they use their health benefits) that align with those available to staff employees. This option also includes modest contribution increases in the second and third years of an anticipated three-year agreement. The second option keeps the existing plan design (including co-pays, deductibles, and co-insurance that people pay when they use their health benefits) and increases the percentage of salary contributions. Additionally, the University presented a proposal related to parking rates to the union.

Bargaining session canceled by union representatives.

The University responded to several items proposed by the Union on the first day of negotiations and made proposals specific to scheduling in ICA and the grievance procedure. The Union amended their original contracting out proposal. The University also responded to the Union’s earlier wage proposal of:

• 36% increases over 3 years
• up to 50% in additional market adjustments on top of the 36% wage increases
• cost of living adjustments
• more than triple rate increase to shift differential
• Increased on-call rate and revised hiring rate
• $3000 ratification bonus

University representatives indicated that Penn State is committed to negotiate a contract with across-theboard increases for employees and exploring market-based wage adjustments as well. However, the union’s proposal is not realistic, and the University asked the union for a more realistic proposal that demonstrates that the union is interested in reaching an agreement on wages.

Union representatives ended negotiations for the day and canceled the bargaining session scheduled for May 21, 2024.

Penn State and the union agreed to not meet in joint session on this day.

On May 2, 2024, representatives from the University and Teamsters Local 8 convened in State College to begin negotiating for a new contract. The union began the session by reviewing their wage proposal:

• 36% increases over 3 years
• up to 50% in additional market adjustments on top of the 36% increases for all employees
• cost of living adjustments
• more than triple rate increase to shift differential
• Increased on-call rate and revised hiring rate
• $3000 ratification bonus

Several technical service employees invited by the union as well as the union’s bargaining team spoke at the start of negotiations. They shared their experience working for and commitment to Penn State, with many sharing the pride they feel in supporting our students. Some also spoke about economic challenges they have faced and shared that they are interested in increased wages. The Union and Penn State exchanged formal proposals on numerous other topics including: overtime, holidays, the contracting out of work, supervisory functions, and work schedules. In addition, Penn State made proposals focused on addressing barriers within the existing contract that prevent the assignment of work to technical service employees and proposed new contract language to provide for training for technical service employees and positions as well as employee recognition programs.