Stanford workers voted with 95 percent support to ratify a new three-year contract Sept. 8. Instead of taking a planned vote that would have authorized union leaders to call a strike, the Service Employees International Union (SEIU) Local 715 accepted a contract that finalizes wage increases at five percent this year.

The agreement came one week after the previous contract's expiration, which left the union's 1,200 Stanford workers working, but in limbo.

Wage increases, the most contentious issue debated between the union and University in the previous months, were finalized with a four percent increase (and one percent bonus) effective retroactively to Sept. 1. Further increases of 3.75 percent and 3.25 percent will follow in 2007 and 2008, respectively.

Stanford University Workers President Zev Kvitky said he found the wage increase fair.

"It was a reasonable wage offer that at least keeps pace with the rising cost of living," Kvitky said.

Although it scored a victory with wage increases, the union was forced to compromise on retirement packages, and the University achieved its goal of replacing a defined annuity plan for new workers with a contribution plan that limits long-term liabilities. The Stanford Contributory Retirement Plan (SCRP) will replace the Stanford Retirement Annuity Plan (SRAP) effective Jan. 1, 2007.

When the contract was previously opened in February of this year, the union pushed hard to not implement that program, believing it would create an unfair, "two-tiered system" of workers. The latest bargaining agreement puts Stanford more in line with the private sector, which has been moving toward contribution plans.

"I think many people are displeased with this decision to implement a two-tier retirement plan," Kvitky said. "I think, though, that we would not have been able to reach an agreement without some guarantees and improvements on health benefits, which kind of made it easier to accept the total package we were offered on benefits. However, we clearly are ultimately not in agreement with Stanford to have a two-tier plan."

These new health care benefits are part of Stanford's Health Care Assistance Program. The newly implemented program subsidizes "an employee's regular contribution for employee-plus-dependent coverage under the least expensive medical plan," according to a University press release. "The subsidy is up to 100 percent for employees working three-fourths time or more with verified household incomes of $45,000 or less. There is a sliding-scale subsidy for employees with household incomes up to $60,000." Retiree health care benefits, for those retiring within the next three years, will remain consistent with the previous program announced in February 2005.

"We originally asked for this last year," Kvitky said. "This is one of the reasons we went on a one-day strike. We really feel Stanford ought to pay the cost of health insurance for families, not just for the workers, so this certainly isn't what we proposed, but it certainly is a significant step in that direction."

Other terms in the new agreement include a "commitment by the University to use progressive discipline where appropriate to improve performance deficiencies" and worker realignments in certain areas that the SEIU Local 715 covers. This gives the University the flexibility it says is needed to efficiently do its work at manageable costs.

Overall, Kvikty found the agreement to be a "fair package," a result of the union putting up a strong front.

"We felt that, under the circumstances, which are not just the situation with benefits and Stanford, but the fact that across the country these types of benefits are being cut or lost entirely, we were able to gain some ground in health care, although we had to lose a little bit in retirement," he said. "I think people recognize that's the trend, and we put up a good fight and were actually able to make some ground on benefits, despite a two-tier retirement plan."

Along with making improvements on more minor issues, such as job security, the use of temporary and external workers, and representation in the decision process, according to Kvitky the union also fought back an originally 39-page proposal full of "take-away" <\p>--<\p>cuts and restrictions.

"And after those 39 pages of take-away, this two-tier retirement plan is the only one we conceded to Stanford," he said. "Everything else was beat back, and we actually made progress on a lot of other issues that are not big-ticket economic issues."

Both the union and Stanford left on good terms with the agreement, having "worked long and hard to reach an agreement that is a win-win," according to Diane Peck, executive director of Human Resources, in a press release. The negotiations lasted over two months this summer, but as Peck added, "both the union and the University negotiated with determination and in good faith."

"I believe the new contract will help maintain Stanford's position as a first-rate employer in the Bay Area while providing a strong framework for the next three years, building on the foundation of excellence our staff continues to provide each and every day," Peck said.