What is this dispute about – what's blocking an agreement?

In UC's view, the key issue blocking a deal is AFSCME's objections to UC's pension reforms, which include:

• Increased contributions toward the cost of pension benefits from both UC and employees (currently 10 and 5 percent respectively, increasing to 12 and 6.5 percent respectively July 1, 2013).
• A new category ("tier") of pension benefits for employees hired on or after July 1, 2013.
• Revised eligibility rules for retiree health benefits.

Like many employers, including the State of California, UC is enacting pension reforms to help address a $24 billion unfunded liability to its retirement programs, and enable UC to continue to offer pension benefits that adequately recognize employees' service and also are financially sustainable.

UC's reforms apply to tenure-track faculty and staff hired on or after July 1, 2013. Eight UC unions representing 14 bargaining units have agreed to these reforms. UC's pension reforms are also similar to what has been implemented for state employees, some of whom are represented by AFSCME. AFSCME has not accepted any of UC's proposals, and is demanding its members pay less than other UC employees for the same benefits which UC believes is unfair to other employees.