State Employee Union Bosses Stand To Gain Big Under New CBAs

State Employee Union Bosses Stand To Gain Big Under New CBAs
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As it currently stands, both the state House and Senate budget proposals fully fund the pay raises provided for in the collective bargaining agreements (CBAs) negotiated by Gov. Jay Inslee and unions representing state employees last year.

The Senate’s budget makes funding of the CBAs contingent upon passage of SB 6126, which contains a package of reforms to the collective bargaining process, including requiring future contract negotiations to be open to the public. The House budget, in contrast, funds the CBAs unconditionally.

Either way, however, state employees aren’t the only ones that will be getting a pay raise. Union executives stand to profit considerably as higher state employee pay translates into more dues.

Typically, union dues are based on a percentage of employees’ pay. So when state employees are paid more, the union’s cut increases as well. According to Washington State’s Human Resource Office, about three-quarters of state employees are covered by CBAs.

While it is difficult to estimate precisely how much more government unions will make because of the pay raises, the Freedom Foundation has assembled some ballpark numbers.

  • According to our estimation, the Senate’s 2015-2017 biennial budget proposal contains funding for about $534 million in higher pay, compensation and expenses as required by CBAs.
  • Of this, about $12.5 million in dues and fees will be deducted from public employees’ paychecks by the state and sent directly to labor unions.
  • About $4.6 million will then be spent by labor unions on political activity and other activity unrelated to collective bargaining.

A more detailed accounting of these numbers is available here.

Items in red are unsourced estimates, while sources for all other numbers can be provided upon request. Information was compiled from the Proposed Senate 2015-17 Operating Budget, union LM-2 reports to the U.S. Department of Labor, and various union financial statements to nonmembers as required by Chicago Teachers v. Hudson.

Director of Research and Government Affairs
mnelsen@freedomfoundation.com
As the Freedom Foundation’s Director of Research and Government Affairs, Maxford Nelsen leads the team working to advance the Freedom Foundation’s mission through strategic research, public policy advocacy, and labor relations. Max regularly testifies on labor issues before legislative bodies and his research has formed the basis of several briefs submitted to the U.S. Supreme Court. Max’s work has been published in local newspapers around the country and in national outlets like the Wall Street Journal, Forbes, The Hill, National Review, and the American Spectator. His work on labor policy issues has been featured in media outlets like the New York Times, Fox News, and PBS News Hour. He is a frequent guest on local radio stations like 770 KTTH and 570 KVI. From 2019-21, Max was a presidential appointee to the Federal Service Impasses Panel within the Federal Labor Relations Authority, which resolves contract negotiation disputes between federal agencies and labor unions. Prior to joining the Freedom Foundation in 2013, Max worked for WashingtonVotes.org and the Washington Policy Center and interned with the Heritage Foundation. Max holds a labor relations certificate from the University of Wisconsin-Madison and graduated magna cum laude from Whitworth University with a bachelor’s degree in political science. A Washington native, he lives in Olympia with his wife and sons.