Department of Administrative and Financial Services Announces Resolution to MSEA Complaint

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September 5, 2024
Department of Administrative and Financial Services

State will hire third party to conduct a new classification study and provide $2,000 lump sum payment to State employees

AUGUSTA, Maine �€" The Department of Administrative and Financial Services (DAFS) announced today that the Mills Administration and the Maine Service Employees Association SEIU Local 1989 (MSEA) have resolved a complaint filed by MSEA with the Maine Labor Relations Board that will result in a new classification study and a one-time lump sum payment of $2,000 to State of Maine employees.

The agreement between the Administration and MSEA, which represents more than 9,000 employees within the Executive Branch, resolves a disagreement before the Maine Labor Relations Board about the best way to move forward with improvements to the State's classification and compensation plans.

As part of the resolution, the State of Maine will hire a third-party vendor to conduct an in-depth study of the State's classification system. At its core, the aim of the study is to ensure that the State of Maine's classification system is poised to meet the needs and demands of a modern workforce, including attracting and retaining qualified employees, and to ensure that positions performing similar work with similar levels of knowledge, skills, ability and accountability are grouped fairly and consistently. The report is expected by December 31, 2025.

In the meantime, in recognition of the time that will be necessary to undertake and complete the study, in the beginning of October, full-time employees in pay status will receive a one-time $2,000 lump sum payment (proration and timing for part-time, seasonal and intermittent employees and exceptions will apply).

Both parties also agree to bargain over the impact of the report's findings and recommendations, beginning on or about May 1, 2026, and that DAFS must submit a report to the Legislature by September 1, 2026 that details the process, the study's findings and recommendations, and the Administration's planned next steps.

"I am proud of and happy with the agreement we have reached. It embodies the Governor's longstanding belief that conversation is better than litigation," said Kirsten Figueroa, Commissioner of the Maine Department of Administrative and Financial Services. "Over the past nearly six years, the Mills Administration has significantly increased pay and benefits �€" by at least 24.1 percent �€" for State employees. This new study, bolstered by another generous lump sum payment, will advance our support of State employees and allow us to continue to focus on parity within our classification system. Our goal, from the beginning of the Governor's time in office, has been for State of Maine government to succeed as an Employer of Choice, which includes providing competitive wages and benefits that can match the reward provided by serving the people of Maine."

This study is the logical next step in the Administration's comprehensive efforts related to the State's classification and compensation plans. The most recent statutory requirement, Report and Recommendations of the Maine State Government Classification and Compensation Plans Study, was presented to members of the Joint Standing Committee on State and Local Government on February 8, 2024. Work on the recommendations in this report, some of which will be met with this new study, are ongoing.

Since taking office, the Mills Administration has significantly improved compensation and benefits for state employees. From September 2019 to July 2024, every State government employee has seen at least a 24.1 percent increase in their pay. For the more than half of State workers who are eligible for the new Step 9 beginning in July 2024, their cumulative pay growth will be at least 29 percent.

This is in addition to other increases, such as longevity pay for employees who have worked longer than 5 years for the state; a guaranteed promotion pay jump of 7 percent (increased from 5 percent); merit increases; and the various stipends, shift differentials, and allowances, many of which were improved during the last contract period. Additionally, there have been benefit increases, thousands of reclassification efforts, and prior one-time lump sum payments of $2,000 and $800.

In fact, in the fewer than six years since assuming office, Governor Mills and the Legislature have provided the same level of salary increases for state employees that were provided during the previous 16 years combined.

This announcement is on the heels of news that the State of Maine has been awarded the 2024 Business Excellence Award by the Maine Council on Aging, and �€" for the 4^th consecutive year �€" named as one of the Best Large Employers in Maine by Forbes.

This Administration is committed to a continued partnership with state government employees to ensure they are adequately compensated and otherwise supported for their meaningful contributions to the wellbeing of Maine people.

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