UCLA and Teamsters Local 2010 continued negotiations on April 20 and 21, 2026, toward a successor collective bargaining agreement for the UCLA Skilled Trades Bargaining Unit (“K4”), which is represented by Teamsters Local 2010. These sessions built upon the progress reported in Bargaining Update No. 8 (April 6 and 7, 2026), representing the transition of negotiations into a phase focused primarily on outstanding economic matters.

On April 20, UCLA presented a comprehensive package proposal encompassing all outstanding articles and appendices—both economic and non-economic. The package was presented in its entirety to provide all parties and stakeholders with a clear view of UCLA’s current position across all open items, and to facilitate focused, efficient negotiations toward a complete agreement.

As negotiations over economic items are in their early stages, UCLA’s initial wage offer was calibrated in relation to the totality of the Union’s opening economic proposals, including its initial wage demand of a compounded 76.96% increase over four years, alongside a range of additional economic proposals whose combined costs have not yet been fully quantified. UCLA’s initial offer on wages is intended as a starting point for good-faith bargaining toward a mutually acceptable agreement.

UCLA’s initial wage offer for a five-year agreement (July 1, 2026 – June 30, 2031) is as follows:

• 3% across-the-board increase, effective July 1, 2026
• 2% across-the-board increase, effective July 1, 2027
• 2% across-the-board increase, effective July 1, 2028
• 2% across-the-board increase, effective July 1, 2029
• 2% across-the-board increase, effective July 1, 2030

These increases represent a compounded wage increase of 11.49% over the life of the agreement.

On April 21, the parties reached tentative agreement on Article 11 – Promotion and Transfers and Appendix N. These agreements reflect continued progress on non-economic contract language.

Teamsters also presented a revised wage proposal for a five-year agreement:

• 16% across-the-board increase, effective July 1, 2026
• 12% across-the-board increase, effective July 1, 2027
• 10% across-the-board increase, effective July 1, 2028
• 10% across-the-board increase, effective July 1, 2029
• 10% across-the-board increase, effective July 1, 2030

The Union’s revised proposal represents a compounded wage increase of 72.92% over five years. UCLA acknowledged the Union’s movement from its prior proposal—a compounded increase of 76.96% over four years, submitted on March 10, 2026—which would have carried a total cost of approximately $46,417,700 above current wages over the life of the agreement.

The table below presents the two current wage proposals side by side, along with the Union’s initial March 10, 2026 proposal, for reference.

Wages are one component of the economic package under negotiation. UCLA’s assessment of any wage proposal must account for the full range of economic items the Union has placed on the table. As UCLA communicated at the bargaining table, the University evaluates all economic proposals together, as the combined cost of the total package directly affects what is fiscally sustainable.

In addition to wages, Teamsters has submitted the following economic proposals, none of which has been accompanied by cost estimates:

• Increased compensation for on-call assignments
• An increase of all existing pay differentials by more than 50%, and the creation of a new $75 per month differential applicable to all K4 UCLA Health employees
• Creation of a new floating holiday
• Caps on employee contributions to medical insurance premiums, extension of medical coverage to parents and stepparents, and an increase in no-cost life insurance coverage from $50,000 to $150,000
• Establishment of an Equity Review Committee (re-passed from the March 10, 2026 proposal). The Union has indicated that it will not identify which classifications require review, nor provide cost estimates, until after a successor agreement has been ratified.

The cumulative cost of these proposals, considered alongside the Union’s wage demands, represents a substantial financial commitment for the University. UCLA has requested that the Union provide costings for all of its economic proposals so that the parties can engage in an informed discussion of the full economic package.

To provide full context for the ongoing wages discussion, the table below presents current wage rates across all K4 bargaining unit classifications. These figures reflect base wages only and do not account for the substantial cost of employer-provided benefits.

K4 bargaining unit employees fall within Group 7 (Staff Non-Exempt / Food-Custodian-Grounds) under UCLA’s Composite Benefit Rate (CBR) framework. The applicable CBR for FY2025–26 is 49.5% of base salary, rising to a proposed 52.0% for FY2026–27. These rates are set in compliance with Federal Uniform Guidance and represent the University’s employer-side cost for benefits including retirement contributions, health and dental insurance, vision coverage, life insurance, workers’ compensation, Medicare, and other fringe benefits.

This means that for every dollar of base salary earned by a K4 employee, UCLA contributes an additional approximately 49 to 52 cents in employer-paid benefits—a significant component of total compensation that is not reflected in wage rates alone. Any wage increase proposed under this agreement will generate a corresponding increase in employer benefit costs at the same rate.

UCLA’s wage proposal reflects the University’s current financial circumstances. On March 26, 2026, Interim Vice Chancellor and Chief Financial Officer Reem Hanna-Harwell communicated to the campus community that UCLA’s projected closing deficit on central accounts for Fiscal Year 2026 stands at approximately $220 million—absent significant adjustments in campus spending.

This deficit is driven by multiple converging pressures: reduced state funding levels, operating costs that have risen faster than revenue, and broad financial challenges facing public higher education. In November 2025, Chancellor Frenk established the Executive Budget Action Group (EBAG) to provide institutional leadership and coordination around the financial principles and budgetary decisions that will shape UCLA’s path forward.

UCLA is actively evaluating both immediate and multi-year budget strategies, working across academic and administrative units to distinguish recurring deficits from one-time shortfalls and to develop a structured plan for fiscal recovery. The CFO has noted that while a full resolution of the gap will require multiple years, the University is committed to defining a clear timeline toward a balanced budget.

These fiscal realities inform each of the economic proposals UCLA brings to the table. UCLA values the contributions of K4 skilled trades employees and is committed to offering compensation that recognizes that value while remaining sustainable for the institution and consistent with its obligations to the broader campus community.

For continuity, the following summarizes the key outcomes of the prior bargaining sessions:

• The parties engaged in clarifying discussions on hiring practices and subcontracting.
• UCLA stated its position that any successor agreement should include a no-strike/no-lockout provision to ensure labor peace for the duration of the contract.
• UCLA expressed its preference to adopt the name “Farmworkers’ Day” for the applicable contract holiday.
• Teamsters withdrew its proposed new article on Employee Paycheck Errors.
• The parties reached tentative agreement on Article 1 – Recognition.

UCLA and Teamsters Local 2010 are scheduled to continue negotiations on May 4 and 5, 2026. UCLA appreciates the continued engagement of Teamsters Local 2010 and looks forward to productive discussions at the upcoming sessions.