The APA eligible base wage increase this October 2019 will be 2.75%. We have also confirmed that the eligible base wage increase next year in October 2020 will be another 2.75%.
APA 2019 – 2021/2022 Health Care & Wage Increases
In addition to annual eligible wage increases, the APA is proud to have negotiated a joint wage and health care agreement that ensures fully funded health care with no monthly employee-paid premium for single, double, and family coverage for the base plan (Blue Care Network) health care coverage through December 31, 2021.
In short, the APA wage increases for the coming years are as follows:
-October 2019: 2.75%, currently subject to 40% of the wage increase provided automatically and 60% of the wage increase provided through application of management’s merit pay guidelines. The merit and across-the-board percentages are subject to change pending a successor APA contract which is being bargained with MSU.
-October 2020: 2.75%, currently subject to 40% of the wage increase provided automatically and 60% of the wage increase provided through application of management’s merit pay guidelines. The merit and across-the-board percentages are subject to change pending a successor APA contract which is being bargained with MSU.
-October 2021 and 2022: to be determined under the terms year of our wage and health care agreement. A minimum 1% lump sum payment to a maximum of a 2.75% base wage increase.
As a reminder, the APA negotiates our contract that ensures fully funded health care, a minimum salary by grade level, and annual eligible base wage increases. It is noteworthy that the APA contract works as a floor and there is no ceiling for the salary increase amount or maximum annual salary.
While 100% of the funds negotiated by the APA for annual wage increases must be distributed in full to APA members each year in October, a department is fully permitted under the APA contract to provide a greater wage increase in October, or extend an out-of-cycle wage increase in any month, provided the department accounts for the funding in their budget and it is processed through HR.
A More Detailed Explanation
To begin, health care will continue to be fully MSU-funded with no employee premium for the base plan for single, double, and family coverage through December 31, 2021.
As to wages, starting this October 2019, the health care cost experience shall be calculated based on the average health care cost per union member of the MSU Coalition of Labor. That calculation shall be a monthly average over the period July 1 through June 30 of each year.
Therefore, the October 2019 base wage increase was determined using the new formula of average union member health care cost. Because the average cost increase per member was .9% over that measuring year, APA members will receive a 2.75% base wage increase in October 2019.
For October 2020, 2021, and 2022, the health care cost increase will continue to be measured using the average union member health care cost increase. As with this notice, once we know the finalized health care cost increase for each measuring year and the associated base wage increase amount we will communicate with the APA membership accordingly.
We hope that the above information helps inform your understanding of the upcoming annual APA wage increases and fully funded health care coverage. You can review a copy of the entire joint wage and health care agreement on the APA website at:
If you have additional questions or concerns, please feel free to contact us via email at firstname.lastname@example.org or phone us at the APA office at 517.999.4004.