California State Workers Go On Strike, Handing Newsom New Problem

Gov. Gavin Newsom faces a major labor dispute as his time in office winds down and speculation grows about a possible 2028 presidential campaign.

The union representing roughly 100,000 California government employees says its members have authorized a one-day strike for October 21, after contract negotiations stalled over pay, benefits and workplace flexibility.

The Service Employees International Union Local 1000 announced Thursday that 96.2% of participating members voted to authorize the walkout. If it goes ahead, it would be the first statewide strike in the union’s history.

SEIU Local 1000 is seeking salary increases totaling 20% over three years: 7% in 2026, another 7% in 2027 and 6% in 2028. Added together, those increases equal 20%; compounded, they would result in an overall raise of about 21.4%.

The final cost to taxpayers has not been established. It would depend on how many employees receive the raises, their current salaries and the benefits included in any agreement. The proposed increases could add to state payroll expenses as California faces budget pressures and questions about the long-term cost of government operations.

The union also wants more affordable health coverage and updated workplace policies, including greater flexibility for employees whose jobs can be done remotely. Union President Anica Walls has accused Newsom’s administration of failing to seriously consider the union’s proposals.

Walls has argued that the union’s members make up less than 3% of the state budget and deserve greater consideration in negotiations. Union officials say better compensation is needed to retain experienced employees and keep pace with living costs. They also contend that state workers have already made financial sacrifices in past budget negotiations.

SEIU Local 1000 represents employees across about 140 state departments and agencies, including the Department of Motor Vehicles, transportation agencies, hospitals and offices that administer unemployment and disability benefits. The union plans picket lines in Sacramento, Oakland, San Francisco, Fresno, Los Angeles, San Diego and other communities.

The current contract expired June 30, leaving employees without a new labor agreement for more than three months. The union also authorized a strike in 2016, but reached an agreement with then-Gov. Jerry Brown before workers walked off the job.

The current wage dispute follows a previous three-year contract that scheduled three consecutive 3% raises for union members, with some employees eligible for additional salary adjustments. That agreement was projected to increase state spending by about $1.5 billion over its term.

California’s budget difficulties later disrupted parts of the deal. The Newsom administration withheld a conditional additional 1% raise in 2025 after the required economic conditions were not met. State employees also accepted temporary pay reductions as officials sought to address budget shortfalls, offsetting some previously negotiated increases. The union agreed to delay another scheduled raise until next summer, concessions now cited in its argument that workers have already helped control state spending.

The dispute has also moved to California’s labor board. SEIU Local 1000 filed an unfair labor practice complaint with the Public Employment Relations Board, accusing the California Department of Human Resources—which negotiates labor agreements for the Newsom administration—of refusing to bargain in good faith and rejecting proposals without meaningful negotiations.

In late September, the board found that the state had failed to meet its good-faith bargaining obligations. The Newsom administration says it remains willing to negotiate.

Economist Wayne Winegarden told The Center Square that the proposed raises could deepen California’s fiscal challenges. He questioned whether the state could sustain higher payroll obligations while maintaining existing services.

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