Mills approves ,000 checks for state workers, new wage study

Tom Farkas, communications and training coordinator for the Maine Service Employees Association, hangs a banner during the Central Maine Labor Council Labor Day BBQ in Skowhegan on Sunday. Anna Chadwick/Morning Watch

The Mills administration will give thousands of state workers a one-time $2,000 payment as part of a deal that also includes a new investigation into state workers’ compensation.

The agreement the government announced Thursday is in response to a complaint filed in February with the Maine Labor Relations Board by the state’s largest union for state employees.

The administration had resisted a demand by the Maine Service Employee Association, SEIU Local 1989, for a new study of wage classification, noting that wages for state employees had increased by more than 24 percent under Governor Janet Mills, more than in the previous 16 years combined.

But union leaders argued that the government’s 2020 wage study was outdated and accused the administration of ignoring a legal mandate to update it to reflect what were historical inflation levels. The union argued that Maine state workers had fallen behind comparable private-sector workers despite the raises under Mills.

In response to the complaint, a spokesman for the Department of Financial and Administrative Services, which oversees contract negotiations, said at the time that the union’s case was “based on erroneous legal claims and factual errors” and ignored steps the government had already taken to close the wage gap.

But in a press release Thursday, DAFS Commissioner Kirsten Figueroa said she was “proud and pleased” with the agreement, saying it “embodies the governor’s longstanding belief that conversation is better than litigation.” She also pointed to the administration’s efforts to improve wages and benefits for state workers.

“This new study, supported by another generous one-time payment, will increase our support for state employees and allow us to continue our focus on parity within our classification system,” Figueroa said. “Our goal, from the beginning of the Governor’s term, has been for Maine State Government to succeed as an employer of choice, which means offering competitive wages and benefits that match the rewards that come from serving the people of Maine.”

A spokesman for the union, which represents more than 9,000 government employees in the executive branch, was not immediately available for comment.

Starting in October, full-time state employees will receive their one-time $2,000 payments. The administration said payments for part-time, seasonal and casual workers will be prorated and that some exceptions would apply.

Details about these exceptions and the total cost of the one-time payments were not immediately available.

The payments are an acknowledgement that the new investigation, which will be conducted by a third party, will take some time.

The study examines whether government salaries are competitive enough to attract and retain qualified workers. It also examines whether positions that perform similar work with comparable knowledge, skills, abilities and accountability are grouped fairly and consistently.

The deadline for the report is December 31, 2025. Once the report is available, the state will negotiate the report’s findings and recommendations beginning in May 2026. DAFS must submit a report to the Legislature by September 1, 2026.

The government said the new wage study is “the next logical step” in efforts to close the pay gap between government workers and the private sector, which the union says makes it difficult to fill vacancies.

In addition to raising wages, the administration noted that half of all state employees are eligible for a new pay scale that brings their total pay increases to about 29 percent over the past six years. Officials also noted that they have strengthened seniority pay for those with more than five years of service, a guaranteed 7 percent promotion pay (up from 5 percent), performance increases, and various allowances, shift pay and bonuses.

The union’s complaint was filed just after management concluded a difficult round of contract negotiations that required mediation because the state and the union were hundreds of millions of dollars apart on workers’ compensation.

The union ratified four contracts in December, including a 6% raise in January, an $800 payment expected in February and an additional 3% pay increase in July. It also included child care reimbursement of up to $2,000 for certain workers, increased mileage reimbursement and increased seniority pay after five years of service.

This story is being updated.