The APA is proud to have negotiated a joint wage and health care agreement that ensures annual eligible wage increases and 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.
In short, the APA wage increases for the coming years are as follows:
–October 2017: 1.9% subject to 40% of the wage increase provided automatically and 60% of the wage increase provided through management’s application of merit pay guidelines.
–October 2018: 0% increase/salary freeze under the last year of our current joint wage and health care agreement.
–October 2019: to be determined under the first year of our recently ratified successor wage and health care agreement. A minimum 2% increase and a maximum of a 2.75% base wage increase.
As a reminder, the APA negotiates our contract that ensures fully funded health care, a salary minimum by grade level, and annual eligible base wage increases. That being said, 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 Annual Wage Explanation
In further detail, with the APA serving a key leadership role in negotiating the contract, all unionized campus support staff have a mutual agreement that provides the same health care coverage and annual percent based wage increases.
For the APA, October 2017 is the third year of our current four-year joint wage and health care agreement. Under the current agreement, annual eligible base wage increases are determined through application of the health care and wage matrix.
In function, this means the total annual health care cost increase from July 1, 2015 – June 30, 2016, determined what our October 2017, base wage increase will be. Our annual APA raise is provided roughly 14 months after the health care spend measuring year concludes. Since our total health care cost increased 5.9% in that 2015 – 2016 measuring year, the matrix provides that all APA members are eligible for a 1.9% base wage increase this October with 40% of the wage increase provided automatically and 60% of the wage increase provided through management’s application of merit pay guidelines.
October 2018 is the fourth and final year of our current joint wage and health care agreement which utilizes the same process outlined above to determine our eligible base wage increase. However, the total annual health care cost from July 1, 2016 – June 30, 2017, increased 16.4% in that measuring year. Therefore, under the matrix, all APA members are slated for a salary freeze (or as MSU identifies it, a 0% increase) in October 2018.
Finally, the October 2019 base wage increase will be determined through application of our recently ratified joint wage and health care agreement. Under the agreement we are assured at least a 2% increase and a maximum of a 2.75% base wage increase.
One very significant improvement from the last round of joint wage and health care negotiations is a change in methodology in how we calculate the total annual health care cost increase. For our wages starting in October 2019, the health care cost experience shall be calculated based on the average number of Coalition of Labor union members eligible for health care. That calculation shall be based on a monthly average over the period July 1 through June 30 of each year.
This is a positive change from the years of our current agreement that establishes our October 2017 and October 2018 base wage increases. Our wages for October 2015 through October 2018 were determined exclusively on the total health care spend regardless of how many employees were/are represented by campus support staff unions.
This positive change starting with our October 2019 wage increase means the annual increase accommodates the circumstance of MSU hiring more employees over the next four years without negatively impacting APA members’ annual base wage increase. Under any scenario, health care remains fully funded with no employee paid monthly premium for single, double, and family coverage through December 31, 2021.
Therefore, in the worst-case scenario for our October 2019 wage increase, should health care costs increase at 10.01% or more during that measuring year APA members would be provided a 1% base wage increase and an additional 1% lump sum bonus (for a total of 2%). In the best-case scenario that year, if health care costs are calculated to have increased 1% or less, APA members would be eligible for a 2.75% base wage increase.
Since the total health care spend measuring year for our October 2019 base wage increase is July 1, 2017, through June 30, 2018, we have no way of knowing the specific APA October 2019 wage increase at this time. However, once the final number is determined under the new agreement (in the fall of next year, 2018) we will communicate with the APA membership accordingly.
We hope that the above information resolves any confusion regarding upcoming annual APA wage increases. If you have additional questions or concerns, please feel free to contact us via email at email@example.com or phone us at the APA office at 517.999.4004.