The workers are seeking a pay increase to $15 an hour. Up to 96 percent of the members are eligible for at least one government welfare program because of their low wages. University officials offered to increase wages to between $11.50 and $12 an hour. But the workers rejected the offer—and for good reason.

A recent study by the Center for Labor & Community Research and the Partnership for Working Families showed UC workers are paid significantly less than workers at other hospitals and universities in the state.

The report finds that UC workers are paid about 25 percent less than the “market rate” for similar workers in their communities. According to the report, if the workers were paid “market rates,” the resulting economic benefits would include $147 million more spending on local goods and services, $23 million in greater profits for local businesses, $9 million in additional state and local tax revenue, and nearly 900 new jobs.

Yet, UC medical center top executives recently pocketed big raises and bonuses. According to a Local 3299 fact sheet, the salaries of medical center chief executive officers (CEOs) and chief nursing officers (CNOs) were increased by up to 39 percent in the fall. The CEOs and CNOs also received bonuses of up to $83,000—a one-time payment in addition to any salary increase.

On its website, the union says the university’s latest offer is “insulting” and the proposed package offers no guaranteed wage increases for the majority of service workers, does not fund merit steps and does not guarantee benefits.