Penn State, Teamsters Union Reach Tentative Deal, Avert Strike

Penn State and the union representing about 2,500 of its technical service employees reached a tentative agreement on Friday for a new four-year contract, averting a potential strike with their current deal set to expire on Sunday.

Members of Teamsters Local Union 8 will receive wage increases totaling 20% over the four years, according to the union's website . More details about the terms of the contract — which will run from July 1, 2024 to June 30, 2028 — are expected to be made public after members vote on ratification "in the next few weeks," according to a university news release.

Local 8 leadership is recommending ratification and will be sharing details of the tentative agreement with members in the coming days.

“We’re very grateful to have reached a tentative agreement with the university,” Local 8 President Jonathan Light said in a statement . “Local 8 and our members are proud to provide exceptional service to the university community and look forward to continuing to do so for another four years. This contract recognizes the hard work and commitment of our members to the university and the commitment of the university to our members.”

The union represents employees at University Park and the Commonwealth Campuses who work in areas including custodial service, emergency medical response, food service, housing service, trades, science, athletics, agriculture, research, printing, engineering, transportation, airport services, ITS and media, according to its website. It has been the bargaining unit for technical service employees since 1967.

“Our technical service employees are valued members of our community, and their contributions are greatly appreciated," Penn State President Neeli Bendapudi said in a statement. "This tentative agreement recognizes and rewards their important contributions to Penn State that allow us to continue advancing the university’s mission and providing the exceptional education for which our university is known.”

Penn State and the union have been engaged in negotiations since May 2, and earlier this week Local 8 members voted overwhelmingly to authorize the bargaining committee to take strike action if a deal could not be reached. Penn State said it was prepared to continue operations in the event of a work stoppage.

As recently as June 14, the union proposed a 32% total wage increase over three years, as well as additional market adjustments up to 50% for some positions, according to the university's human resources website . (It is unclear if market adjustments are included in the tentative contract.) Penn State's proposal prior to reaching an agreement offered increases of 3% each year for three years.

"This effort was only made possible by the nearly 1,900 members who authorized strike action and showed the university that WE WERE READY!" the bargaining committee wrote.

The parties also were negotiating health care benefits, shift differentials, on-call rates, sick leave, severance and other issues.

According to the university, the wage increases in the tentative contract are similar to recent agreements between state government and the employees represented by Service Employees International Union Local 668 and the American Federation of State, County and Municipal Employees (AFSCME) Local 13.

The expiring contract with the union provided wage increases of 2.5% in 2021 and 2022 and 2% in 2023.

Jennifer Wilkes, Penn State vice president for human resources and chief human resources officer, said the university is "gratified" to successfully conclude negotiations and that the new contract recognizes the valued and important contributions of technical service employees.

“These are the employees who keep Penn State operational,” Wilkes said in a statement. “They maintain our facilities and grounds, provide food and services for our students, and clear the snow and ice during weather emergencies. During the COVID-19 pandemic, they were essential workers, serving on the frontlines while the rest of the university was working remotely — and a portion of those technical service workers who didn’t have work during the pandemic were temporarily furloughed, receiving only 50% of their normal salary.”

Sara Thorndike, senior vice president for finance and business, noted that the university recently completed a "Compensation Modernization Initiative" that provided $60 million to better align salaries for staff with market rates. More than $4 million a year is also being invested in promotion and tenure salary increases, in addition to annual 3% merit increases.

“This agreement reflects our commitment to these employees and our appreciation for the work they perform at all of our campus locations,” Thorndike said in a statement. “Much like the $60 million we invested in staff salaries in the Compensation Modernization Initiative, this agreement makes our technical service wages more competitive and better aligned with the market.”

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