The State of Alaska is currently engaged in negotiations with the General Government Unit (GGU), the largest collective bargaining unit representing over 10,000 state employees, as their current agreement is set to expire on June 30, 2025. So far, 16 of the 42 contract articles have been tentatively agreed upon, with no additional costs incurred by the State. However, the union has put forward significant financial demands, including a 38-42% increase in the State’s health insurance contributions over three years, costing an estimated $234.9 million, as well as other proposals that would total hundreds of millions of dollars in cost to the State.
The State has proposed more modest cost-of-living increases based on the Consumer Price Index for Urban Alaska, as well as seeking flexibility to supplement the workforce during emergencies. All monetary terms in a successor agreement will require legislative approval, with negotiations ongoing to come to an agreement that will impact state employees and taxpayers.
With the deadline approaching, the significant gap between the proposals suggests difficult negotiations in the coming weeks. The Legislature is currently debating the capital and operating budgets, with lawmakers adding additional funding and cutting Permanent Fund dividends to cover the extra spending. The outcome of the negotiations will have significant implications for the future of state employees and the budget of Alaska.
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