More than 1,700 Merced County employees will receive a 10% pay raise and alleviated healthcare costs thanks to two new labor agreements approved this month.

The raises come after more than 18 months of employee advocacy that was sparked, in part, by skyrocketing healthcare premiums.

They also come after most Merced County Sheriff’s Office employees received similar increases in late 2023 and early 2024 to stop the hemorrhaging of department staff.

The Merced County Board of Supervisors approved memorandums of understanding in early May with the Merced County Employee’s Association/American Federation of State, County, Municipal Employees (AFSCME) Local 2703 and United Public Employees.

Additionally, management employees not represented by a labor union will receive similar pay raises and healthcare adjustments.

“Members have been overjoyed with it,” said Jerald Phelps, president of AFSCME Local 2703. “They are appreciative of how quickly we were able to get it done. Not only that, but (they’re) just feeling that they’ve been seen and heard for the first time in many years.”

Josh Pedrozo, chair of the Board of Supervisors, commended the employees for their commitment to their jobs as well as their dedication to working with the county for a labor contract during a difficult past few years.

“We worked really hard to make sure to compensate our county employees for work that they do and they’re going to be doing,” Pedrozo said. “They held the line, which was tough. I know that, but I really appreciate them and their willingness to work.”

The agreements call for a 7% pay increase this year and an additional 3% bump next year.

Beginning Jan. 1 next year, the county agreed to pay an additional 3% of employee healthcare premium caps, and will pay 3% more again starting Jan. 1, 2027 – a 6% total increase to the healthcare premium cap.

Those are substantial increases for county workers from a number of departments, including the human services agency, behavioral health, probation, maintenance and tech employees and administrative support employees.

“We worked really hard to make sure to compensate our county employees for work that they do and they’re going to be doing.”

Josh Pedrozo, chair of the Merced County Board of Supervisors

The unrepresented managers who will receive similar raises and healthcare adjustments include the county executive officer, assistant county executive officer, deputy county executive officer, county counsel and the elected and appointed department heads.

A Merced County staff report estimated the pay increases will cost the county an additional $6.3 million. The increased healthcare contributions from the county will cost an extra $870,354.

Healthcare Costs, Public Safety Crisis

In fall of 2023, Merced County and its employees were notified by its healthcare provider that premiums would increase 12% at the start of 2025.

County employees showed up in droves to Board of Supervisors meetings to share how the increase would affect them. They said the healthcare costs ate up any previous wage increases they received and made it difficult to keep a roof overhead and food on the table.

Meanwhile, Merced County Sheriff Vern Warnke also spoke during public comment at many board meetings, sounding the alarm over what he called a public safety crisis in the county due to dwindling numbers of deputies and corrections staff.

While sheriff’s office employees received raises and healthcare premium relief through labor negotiations, other labor units were offered only the healthcare premium relief.

Hundreds of AFSCME members and other county workers picketed outside the County Administration Building for months and came close to striking, arguing their work contributed to the county’s overall safety in other ways.

County officials said they couldn’t afford more wage increases and narrowly avoided a $6.6 million budget deficit.

“Last year definitely felt heavier,” said Kimberlee Bledsoe, a veteran employee for Merced County Behavioral Health and a member of the AFSCME’s bargaining team. “It was exasperating. “We’re working as hard as we possibly could, trying to come up with solutions … and it didn’t go quite as well as we hoped.”

Hitting Reset

Before heading to the bargaining table this year, county and union officials agreed to hit reset after last year’s round of tough negotiations.

Pedrozo met with Phelps and a few other union members before negotiations – when county officials’ communications and actions would be restricted by labor laws to protect good-faith bargaining.

“They wanted to show that they care, that they heard what the employees were saying, and that they understand. …They wanted to make it right,” Phelps said. “We said that’s something that we would like to see happen also.”

Pedrozo said county executives reassured the board they could afford to give raises to these unions this year.

The county and labor groups quickly hammered out contracts they could both agree on. Negotiations lasted a mere 15 days.

“They wanted to show that they care, that they heard what the employees were saying, and that they understand.”

Jerald Phelps, president of AFSCME Local 2703

Both Pedrozo and his colleague, Supervisor Daron McDaniel, also credited the county’s department heads and budget staff for tightening the budget last year so that the raises were possible this year.

“The last couple of years at Merced County have really shown what we can do when we work together,” McDaniel told The Merced FOCUS. “I’ve got to give credit to our department heads for tightening things up and to my colleagues for being smart and careful with our budgeting.

Better Service for Residents

“Thanks to that teamwork, we were able to give our Merced County employees the raises they’ve truly earned.”

Bledsoe and Phelps said their AFSCME and county coworkers now will be able to pay their bills. Plus, they hope county departments will be able to fill jobs more easily to alleviate staffing gaps.

Ultimately, that will translate to better service for Merced County residents, they said.

“When you have people who feel respected and valued and appreciated in their positions, they do a better job,” Bledsoe said. “And as we’re all public servants, … ultimately, that benefits the community.”

About the Author
Brianna is the accountability and government watchdog reporter for the Central Valley Journalism Collaborative.