In a closely watched decision, Washington’s largest union of state government workers has ratified a new two-year contract that provides no pay raises but avoids takeaways on healthcare and other benefits.

Members of the Washington Federation of State Employees approved the agreement Sept. 25, closing the book on a frustrating monthslong negotiation with representatives of Gov. Bob Ferguson who cited a looming budget shortfall for their steadfast refusal to offer a general wage hike.

The collective bargaining agreement runs from July 1, 2027 through June 30, 2029 and covers roughly 42,000 workers. Union negotiators did secure language requiring the two sides to meet next August to discuss a potential pay raise for the second year of the contract.

Mike Yestramski, president of the federation, said they knew this would be a tough cycle and they “tried to be very realistic with people right from the beginning.”

Ferguson’s negotiators repeatedly warned that for a third straight year the governor and lawmakers will need to pare spending to cover ongoing expenses and the cost of expanding government programs.

The contract makes gains in non-economic items and ensures the state will continue to pay 85% of monthly health care premiums, with employees paying the remaining 15%. The state wanted employees to pay a larger share. 

“Given the climate and given the budget, overall I think we got the best we could get,” he told the Standard shortly after the vote was final.

Some Washington Federation of State Employees shared their disappointment on the union Facebook page.

“I’m not surprised the [tentative agreement] passed, but this will force many of us to make difficult decisions and I’m extremely demoralized,” wrote Colton Shane Myers. “For myself, it will mean deciding whether to leave state government altogether now for better work, or be forced to move because I won’t be able to afford cost of living increases while our wages remain absolutely STAGNANT the next two years.”

As of Sept. 25, at least six other units represented by the federation had approved new two-year collective bargaining agreements without any across-the-board salary increases.

These contracts separately cover administrative law judges, classified workers and student support services staff at The Evergreen State College, and employees at Central Washington University and Washington State University. There is an agreement with the Community College Coalition that negotiated on behalf of workers at 12 community colleges.

Elsewhere, members of several other public sector unions are in the midst of deciding whether to approve or reject new contracts. These also include ones representing employees at state agencies, community colleges, universities and the Legislature.

Under state law, Oct. 1 is the deadline for them to ratify agreements to be considered for funding in the next two-year budget. Ratified contracts go to the Office of Financial Management, where the director will determine if it is feasible to pay for them. If so, Ferguson would be expected to fund them in the two-year budget he will propose in December.

Failure to meet the deadline can result in the extension of terms of an existing contract without a wage hike.

‘In position to raise wages’

Meanwhile, an arbitrator awarded 1.5% raises in each of the next two years to roughly 1,480 state Department of Corrections employees represented by the Washington Federation of State Employees.

Starr Knutson oversaw five days of arbitration in late August, and issued a decision Sept. 22.

“My understanding is that the Office of Financial Management contends that Washington State is not currently able to give a large or medium wage increase for the next biennium as there will be budget shortfalls in the next biennium. I believe the State is in the position to raise employee wages by 1.5%,” Knutson wrote.

The union represents community corrections officers and raised issues concerning compensation, workload, working conditions, staffing, and recruitment and retention.

The pay raise is not final since the Office of Financial Management must still sign off on the full arbitrated agreement, Yestramski said.

This story is republished from the Washington State Standard, a nonprofit, nonpartisan news outlet that provides original reporting, analysis and commentary on Washington state government and politics.