State officials outline bargaining priorities and tight budget outlook ahead of 2027–29 talks

Jenny Sheehan, Labor and Policy Strategy Officer with the Office of Financial Management, told the Joint Committee on Employee Relations on May 8 that the core challenge for the upcoming 2027–29 bargaining cycle is “not how we maintain or grow the workforce, but how do we sustain service delivery with a constrained hiring environment.” She outlined the executive‑branch workforce mix, noting most employees work hybrid schedules while site‑dependent staff operate in corrections, health facilities and field roles.

Sheehan said 77% of the state workforce are represented employees and that the state’s civil‑service classification system limits rapid adjustments in compensation and role redesign. She described OFM’s bargaining objectives as ensuring tentative agreements are financially feasible and funded by the Legislature, maintaining good labor relations, and pursuing workplace equity measures where practicable.

Addressing themes emerging from bargaining so far, Sheehan said unions have emphasized placing limits on the use of artificial intelligence in employment decisions and investigations, expanded leave categories (including bereavement and natural‑disaster leave), safety and training related to immigration enforcement, and broader access to members in a hybrid work environment (state email, time, and posting access). She said unions are offering non‑monetary proposals because of the state’s difficult fiscal position.

Sheehan reviewed the bargaining calendar: agencies submit classification change requests in the September before bargaining begins; OFM CNC finalizes classification recommendations in April; the June economic forecasts (including a June 22 transportation revenue forecast) inform what increases can be funded; negotiators aim for tentative agreements by September; and tentative agreements must be submitted to OFM by Oct. 1 for a financial feasibility determination that can feed into the governor’s budget request and the Legislature’s funding decisions.

Sheehan also reviewed the previous bargaining cycle, when the Washington Public Employees Association initially did not ratify agreements and bargaining continued into the fall; the parties ultimately submitted tentative agreements and the Legislature funded the contracts. She noted deferred compensation for WPEA members will be issued after July 1, 2026.

Committee members asked about paid family and medical leave; Sheehan said PFML is governed by statute and Employment Security Department rules and is not itself a negotiable term in collective bargaining. She closed by flagging the practical constraint that larger interest‑arbitration awards historically produce bigger wage increases, and that any arbitration awards still require OFM’s financial feasibility review.