Teamsters Union agrees to strike as negotiations with Penn State continue

FILE – This Thursday, July 12, 2012, photo shows a Penn State University student walking across campus in front of Old Main on the main campus in State College, Pa. Penn State’s liability insurer hopes to deny or limit coverage of claims related to Jerry Sandusky. Pennsylvania Manufacturers’ Association Insurance argues that the university withheld important information needed to assess risk, at least after school administrators investigated a May 1998 complaint that Sandusky showered with a boy on campus. In a June 2012 memo filed in Philadelphia Common Pleas Court, the company argues that Penn State failed to disclose that it had information about Sandusky that was “material to the insurable risk assumed by PMA.” (AP Photo/Gene J. Puskar)

UNIVERSITY PARK, Pa. (WTAJ) — The Teamsters Local 8 union has voted to strike after a 33-hour voting period while negotiations with Penn State continue.

The results:

• 1878 votes Yes
• 175 votes No

Of 2,053 members, 91% voted for a strike. The Local 8 bargaining committee believes this result will help reach an agreement with the university on a fair collective bargaining agreement for its members.

The union representing 2,700 technical services employees at Penn State University can now strike if its bargaining team and Penn State cannot agree on a new contract by Sunday, June 30, when the current contract expires.

The union said it wanted to avoid a strike and would “do everything” to reach a fair agreement to avoid a strike. However, the union said it had authorized a strike if Penn State did not meet its demands.

It is currently unknown what Penn State has offered in a proposed new contract. The union said PSU’s counteroffer was unrealistic and not adequate, the Q/A document states.

Negotiations began on May 2, and by June 26, the two parties had met nine times to hammer out a new agreement.

During the first meeting, the union proposed the following.

• 36% increase in 3 years
• up to 50% additional market adjustments in addition to the 36% increases for all employees
• Adjustment of living costs
• more than three times the rate increase to the shift difference
• Increased readiness rate and revised recruitment rate
• $3,000 ratification bonus

During its next meeting on May 20, the union modified its original divestiture proposal and the university responded to the union’s May 2 wage proposal.

“University officials indicated that Penn State is willing to negotiate a contract with across-the-board salary increases for employees and will also explore market-based wage adjustments. However, the union’s proposal is not realistic, and the university asked the union for a more realistic proposal that shows the union is interested in reaching an agreement on wages.”

20 May, Summary of the negotiation session

On May 29, the parties discussed health insurance and other benefits. The university presented two cost options for health insurance based on employees’ actual usage and their dependence on the union’s health plan.

The first option maintains the current percentage of payroll contributions for the first year of the contract, with the plan’s design allowing for changes to the copayments, deductibles and co-payments that people pay when they use their health insurance benefits. It also provides for “modest” premium increases in the second and third years of what is expected to be a three-year agreement.

The second option maintains the existing design of the plan, including the copayments, deductibles and co-payments that people make when using their health insurance benefits, and increases the percentage of payroll contributions.

The university also presented the union with a proposal regarding parking fees.

On May 30, PSU responded to the union’s proposal regarding schedule, temporary relocation, and severance pay. The university also submitted the wage proposal below.

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

The union and the university also held discussions on a project to update job evaluation and identify the need for market increases in certain occupations. The union presented a counterproposal on holidays, working hours, parking and overtime.

On June 13, the parties met and discussed proposals regarding sick leave, working hours, overtime, vacation and university sports.

On June 14, the union submitted an updated wage proposal, which is set out below.

• 32% increase over 3 years
• up to 50% additional market adjustments in addition to the 32% wage increases
• Adjustment of living costs
• more than three times the rate increase to the shift difference
• Increased readiness rate and revised recruitment rate
• $3,000 ratification bonus

On June 20, the parties exchanged proposals on a variety of issues, including health insurance, work assignments, vacations, work hours, temporary transfers, outsourcing, severance pay and overtime. The union also informed the university that it would hold its vote on whether to authorize a strike before the contract expires on June 30.

On June 25, the day the strike authorization vote began, the university proposed a wage increase, which is listed below.

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

The university also proposed health benefits, including eliminating co-payments for telemedicine services. A tentative agreement was also reached on adjusting holidays to fit staff vacation schedules.

In addition, discussions continued on working time models, temporary transfers, sick leave, training, severance pay and the removal of obstacles to the allocation of work to technical service staff.

The university said both parties will continue to meet this week before the contract expires on June 30. A full overview of the Teamsters 8 Local Union contract for 2021-2024 can be found here.