Two WA public sector unions reach tentative deals on new contracts

Washington’s largest union for state government workers reached a tentative agreement on a new two-year contract early Friday, ending weeks of tense negotiations and a walkout by workers statewide.

Just after midnight, negotiators for the Washington Federation of State Employees voted to accept the tentative deal with the state Office of Financial Management, the union reported on Facebook.

The agreement would cover the period of July 1, 2027 through June 30, 2029. Terms were not disclosed as details will be shared early next week with the union’s 42,000 general government workers who will then vote on whether to accept or reject the terms.

Mike Yestramski, president of the Washington Federation of State Employees, declined to comment Friday.

Meanwhile, on Thursday, the Washington Public Employees Association struck a tentative deal on a new two-year collective bargaining agreement for roughly 2,500 workers it represents in nine state agencies. Among them are the Department of Natural Resources, Department of Revenue, Liquor and Cannabis Board and Department of Agriculture.

It contains no across-the-board wage increase, according to a union official. However, it creates a path for the union and state to reopen talks on the issue of wages during the contract period. Association members will be voting on the agreement in the next two weeks.

“We knew going into this round of negotiations that this would be a difficult bargaining cycle, and it was. We understand the state is facing real financial challenges, but so are our members,” some of whom are struggling to afford housing, food, and other basic necessities, said Amanda Hacker, the association president.

“A zero percent wage increase means another loss in purchasing power, continuing a trend we’ve seen for the last two decades,” she continued. “The result of this bargaining cycle is more of the same, and that simply isn’t sustainable.”

While federation officials declined to speak about their agreement, historically, wage proposals for general government workers are the same for both unions. 

Two years ago, in the last round of negotiations, the federation secured a general wage increase of 5% spread over the current budget cycle. The association’s members initially rejected the proposal as too little but later voted to accept it.

It’s been much different this time around. 

Negotiators for the Office of Financial Management, which is overseen by Ferguson, stood firm on no wage increases, citing a lack of money. They warned of another budget shortfall that will require the governor and lawmakers to pare spending to cover ongoing expenses.

This round of contract talks emerged as one of the most public displays of tension between Ferguson and public sector unions since the first-term Democratic governor proposed furloughs in 2025. That idea was scuttled by lawmakers.

A spokesman for the Office of Financial Management confirmed the tentative agreements with each union.

“Because the broader bargaining process is still ongoing, we aren’t able to discuss specific terms within the tentative agreements at this stage,” said Hayden Mackley, deputy communications director for the state’s budget office.

Meanwhile, contract talks continue for several other public worker unions, including ones representing employees at community colleges, universities and legislative employees

Time is running out. 

State law sets an Oct. 1 deadline for all public worker unions to ratify agreements to be considered for funding in the next two-year budget. Failure to meet the deadline can result in an extension of an existing contract without a wage hike, as members of the association experienced last year. Those workers eventually got paid retroactively.

Once agreements are ratified, the director of the Office of Financial Management will determine if it is feasible to pay for them. If so, Ferguson would be expected to fund them in the two-year budget he will propose in mid-December. That plan will serve as the template for legislative budget writers in the 2027 session.

While wages have been the focal point of recent talks, one major issue, healthcare costs, was resolved a couple weeks ago.

A coalition representing all unions reached a deal ensuring the state will continue to pay 85% of monthly premiums with employees paying the remaining 15%. The state wanted employees to pay a larger share. Maintaining the status quo for all state workers will cost $348.5 million in the next biennium, according to a leader of the Washington Federation of State Employees.