University of Minnesota Service Workers Threaten Strike Over Wages and Health Care Costs

Strategic Insights -

Service workers across the University of Minnesota's five campuses may walk off the job as soon as August 20, as negotiations stall over wages and health care costs. The union representing over 1,400 workers filed an intent to strike on Thursday, with 97% of its members authorizing the action. The workers, including cooks, groundskeepers, truck drivers, and custodians, are demanding better compensation and benefits, citing the rising cost of living.

Key Takeaways:

  • The University of Minnesota's service workers, represented by Teamsters Local 320, have voted to authorize a strike with 97% support.
  • The main issues in the negotiations are wages and health care costs, with the workers seeking 17% raises over three years, while the university has proposed a 4.5% wage increase over the same period.
  • The university also wants to be able to bypass seniority and pay new hires higher wages than current staff in the same position, which is a nonstarter for the union.
  • The union alleges that the company that runs the university's food service operations, Chartwells Higher Ed, has harassed and unfairly disciplined rank-and-file workers.
  • The university is facing financial headwinds, but its $6 billion endowment and $71 million budget surplus raise questions about its ability to provide better compensation and benefits to its workers.
  • Service workers at the university also authorized a strike three years ago, but called it off after reaching an agreement that raised the minimum hourly wage from $15 to $20.
  • The International Brotherhood of Teamsters has approved enhanced strike benefits for University of Minnesota members, providing $1,000 per week, which exceeds the weekly pay of many members.

Statistics:

  • 97% of the 1,400+ service workers represented by Teamsters Local 320 have voted to support a strike.
  • The university has proposed a 4.5% wage increase over three years.
  • The union is seeking 17% raises over three years.
  • The university's $6 billion endowment and $71 million budget surplus.
  • 35% more per hour paid to gig workers than full-time staff with years of service.
  • $1,000 per week in enhanced strike benefits approved for University of Minnesota members.

Sources:

  • Minnesota Reformer, "U of M pays gig workers more than full-time staff to fill dining hall jobs" (November 4, 2022)
  • Minnesota Reformer, "U of M reaches tentative agreement with services workers, averts strike" (August 18, 2019)
  • Minnesota Reformer, "Teamsters Local 320 threatens strike at University of Minnesota" (August 11, 2022)