New WMS bargaining and interest arbitration procedures reshape manager negotiations

The Office of Financial Management briefed the committee on May 8 about Washington Management Service (WMS) bargaining and interest arbitration procedures that will shape manager negotiations in the 2027–29 cycle.

"Bargaining for the Washington Management Service started under a statute change in 2023, with bargaining starting on 01/01/2024," Jenny Sheehan said. She explained the statute limits coverage (generally bands 1 and 2) and excludes certain higher bands and roles (for example, HR managers and budget managers listed in the statute). Sheehan said addenda attached to existing collective‑bargaining agreements typically set WMS‑specific provisions.

Sheehan said there are roughly 5,600 WMS employees statewide, with about 359 represented so far (about 0.5% of the WMS population), and that bargaining for WMS employees is constrained by carve‑outs: compensation bargaining is limited to band minimums and maximums rather than mid‑level pay adjustments; classification, discipline, grievance procedures and overtime rules differ for managers.

On interest arbitration, Sheehan described the process for groups with arbitration rights: mediation is required before arbitration; arbitrators act as fact‑finders who can craft tailored awards rather than choosing one party's full proposal ('baseball' arbitration). Any arbitration award still must be found financially feasible by OFM and submitted by Oct. 1 to be considered in budget requests.

Sheehan also flagged practical challenges: selecting arbitrators typically begins the November before bargaining and hearings are usually scheduled July–August to allow time for decisions, but the state is losing seasoned arbitrators to retirement, which complicates scheduling.

Implication: WMS bargaining and arbitration outcomes will affect managerial flexibility in budget decisions and must be factored into any fiscal reductions that target middle managers.