University reaches agreement with union on benefits issues
Stanford and Service Employees International Union Local 715 agreed Jan. 31 to close contract negotiations over pensions and a few other benefits issues. The contract was reopened late last year—pursuant to a clause previously agreed upon by both parties—to revisit a limited set of benefits issues.
As part of the agreement, the university will change the "base earnings year" for the Stanford Retirement Annuity Plan (SRAP) from 1992 to 1994, effective retroactive to Sept. 1, 2005, and further adjust the base earnings year to 1995 in September 2008. By changing the base year for computing contributions to SRAP-Stanford's defined-pension plan-employees who have been participants prior to 1994 will see an increase in the amount that the university deposits into their accounts.
Separately, the university is making the same adjustment for all unrepresented Stanford employees who are active participants in SRAP.
The university has not offered SRAP to the vast majority of employees who have been hired over the last few years, according to Diane Peck, executive director of human resources. Most new employees participate in the university's Tax Deferred Annuity Plan (TDA) during their first year, after which time many become eligible for the Stanford Contributory Retirement Plan (SCRP). Both plans offer the same investment options.
The agreement between the university and the union also states that SRAP would not be a subject of negotiations this summer, when discussions for the next contract will begin. The workers' current contract ends Aug. 31, and according to Peck, the agreement defers discussions on all other union and university issues until this summer.
The union represents a collective bargaining unit of 1,460 university technicians, maintenance staff and service workers. After negotiators for both sides reached an accord, workers in the union voted later that afternoon to approve its terms by a 93 percent margin—marking the end of a process that began in October.
On Dec. 12, 2005, about 90 percent of the bargaining unit employees participated in a 24-hour strike. Normal university operations ran smoothly during the work stoppage. Talks resumed at the start of this quarter, with union members voting soon after to allow their negotiating team to call another strike at any time. But with an agreement ratified, no strike will take place.
"Our members spoke loudly and clearly to Stanford University regarding what their needs were. We are pleased that the university listened to us and no strike will occur," said Zev Kvitky, an operations engineer at the Stanford Linear Accelerator Center and president of United Stanford Workers, the on-campus chapter of SEIU Local 715.
"This agreement shows that difficult issues can be resolved at the bargaining table," Peck said in a statement released Feb. 1. "I am optimistic that this same spirit of meaningful dialogue and cooperation will serve as a foundation for negotiations on the new contract this summer."
Compensation issues regarding wages and healthcare coverage are expected to be discussed when the university and the union begin negotiations over a new contract sometime this summer.
On Dec. 12, a little less than half of the 511 SEIU-member employees who were scheduled to work that day either at Lucile Packard Children's Hospital or Stanford Hospital also went on strike. The union represents a separate bargaining unit of 1,412 service employees and technicians at the hospitals. Negotiators for that unit and the hospitals agreed on a new contract Jan. 20.