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.”
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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.
