A powerful labor union and the governor’s office are at odds in contract negotiations for thousands of Washington caregivers, with the state proposing a wage freeze and the workers pressing for higher pay.

Caregivers from Service Employees International Union 775 initially asked for a 12% hike over two years — 6% next year, and another 6% the year after. This position would’ve reportedly cost the state around $367 million. Since the state balked, the union dropped its request to a 3% increase next year and 5% the year after.

“We were certainly deeply disappointed by the state’s proposal,” said Adam Glickman, secretary-treasurer for SEIU 775. “This will have a broad impact on the ability of seniors and people with disabilities to find caregivers, to keep caregivers.”

A state Office of Financial Management spokesperson declined to comment on the pending negotiations.

The negotiations would cover about 80,000 care workers across Washington. Most are union represented, while others work for private, state-contracted home care agencies. Even though the state’s offer doesn’t include pay hikes, other costs would total roughly $60 million extra from the state budget over the next two fiscal years, according to state estimates.

These contract talks come as the governor and lawmakers expect the state to face a financial shortfall going into the 2027 legislative session.

On different pages over wages

This year, the state is paying $37.42 per hour in Medicaid reimbursements for caregivers, including health insurance, retirement benefits, paid time off and mileage reimbursement. The workers generally make between $22 and $25 per hour, Glickman said.

The state would keep this hourly rate roughly the same next year, and up it to $38.13 in the 2029 fiscal year, to account for a requested increase in the workers’ health benefits and an updated mileage reimbursement rate.

The caregivers originally proposed $39.17 per hour in the next fiscal year, and $41.74 the year after, and are now countering the state with $38.44 next year and $40.68 the following. The total estimated cost of this plan for the state is around $224 million, about $140 million less than the union’s initial position.

Home care aides support people who need help with dressing, bathing and other activities of daily living due to age or disability.

Workers despaired over the state’s plan, presented early this month. At a recent public hearing, caregiver after caregiver explained the consequences of not raising wages while inflation makes that pay not go quite as far with each passing year.

Glickman called the state’s position “penny-wise and pound foolish,” noting state data shows increases in people going from in-home care to nursing homes would push up other costs for the state. For example, a 25% shift would be worth $1.2 billion annually.

One of the only bright spots for workers is the state agreeing to embed their testing into training, a key barrier for new caregivers.

A recent state audit found hefty delays between training and required skills and knowledge exams. More than two-thirds of applicants aren’t testing within 60 days of finishing their training. The more time between training and tests, the less likely aides are to pass.

Combining the two to avoid these delays would cost the state $2.8 million over the two years, according to the Office of Financial Management.

‘Cautiously hopeful’

Unlike other union talks, these are public, with video-streamed meetings of the Consumer Directed Employer Rate Setting Board. This group, made up of caregivers, union reps, state officials, lawmakers, advocates and home care agency leaders, must first agree on the rates.

Then SEIU will negotiate with the Consumer Direct Care Network of Washington to decide how to use that funding, including how much goes toward mileage, paid time off and other aspects of the total rate. For the non-union represented workers, the rate goes to their employer, who then decides how to dish it out.

The funding will be included in Ferguson’s proposed two-year budget later this year. The Legislature will need to sign off on the pay plan as part of the budget legislation set to be passed next spring.

The next meeting is Aug. 24. The deadline for the board to reach an agreement to be included in the governor’s spending plan is Oct. 1.

If talks drag into September, the board’s chair will act as an arbitrator to decide the rate. The current chair is Cheryl Strange, the former head of the state’s corrections agency and its Department of Social and Health Services.

“Frankly, both sides have an interest in reaching an agreement proactively, rather than leaving it to the uncertainty of an arbitrator,” Glickman said. “I’m cautiously hopeful that we’ll be able to reach a decision, but there’s definitely no guarantee.”

This is a relatively new process, only used previously in 2022 and 2024. The parties didn’t need an arbitrator’s help in those rounds.

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News Source : https://www.opb.org/article/2026/08/17/washington-caregiver-union-pay-hike-state-wage-freeze/