COCC makes its case on balancing wages and financial stability as union classified workers weigh possible strike

(Update: adding video)

BEND, Ore. (KTVZ) -- Central Oregon Community College, which could face a spring strike by its classified workers, made its case Thursday on where its bargaining position stands in contract talks, with officials saying they must weigh the need to pay living wages against the crucial focus on long-term financial stability.

The Oregon Education Association announced and KTVZ News reported Monday that an impasse had been declared in COCC classified employee contract talks and mediation that have occurred over the past year, setting the stage for a potential walkout, after a required cooling-off period and notice.

The union also pointed out and KTVZ News reported Wednesday that two other Oregon community colleges also have similarly unresolved contract talks; any of the three that leads to a walkout would be the first in Oregon community college history. Four K-12 school districts are in similar straits.

Here's COCC's Thursday message, in full. We also have reached out to the Oregon Education Association, to see if they wish to weigh in on the specifics and message from the college about its stance in contract talks.

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NEWS RELEASE
COCC responds to classified union impasse declaration

Central Oregon Community College confirmed on Monday that the Classified Association of COCC (CACOCC/OEA) has declared impasse following mediation in ongoing contract negotiations.

Negotiations between the College and the union that represents custodians, administrative assistants, enrollment staff and other hourly positions have been underway for more than a year. While mediation did not result in agreement, both parties will now proceed through the statutory process outlined under Oregon’s public collective bargaining law.

“We value our classified employees and the essential work they do for our students and community,” said Greg Pereira, COCC president. “The College has proposed a significant multi-year compensation increase of 18.54% [compounded] over three years, or about $1.5 million. The union’s proposal represents a 55.42% [compounded] increase over that same period, totaling approximately $4.8 million.

"As a public institution, we must balance compensation with long-term financial stability. We remain committed to reaching an agreement that is financially sustainable and supports the long-term health of the College, as well as affordability for our students.”

Further, the College has proposed eliminating the lowest step or pay rate for each position in the bargaining unit and removing the current requirement that new employees can only be hired at steps 1-3. This would result in the entry level wage for all bargaining unit positions increasing and addresses CACOCC/OEA’s request to elevate employee starting wages. The College also confirmed that no classified employees are currently earning $18.91 per hour; the lowest hourly rate is $19.68, and the majority earn $20.07 per hour or higher; the top hourly rate is $37.44.

Below is a chart that outlines the compensation increases since Fiscal Year 2015–16 for both administrators and classified employees.

• Administrator/Classified is June Data, comparing hourly rates, year over year, with the exception for FY 16/17 and FY 22/23 with CACOCC Wage Studies.
• Data can include working out of class increases/decreases, bilingual pay increases/decreases, FTE changes, probation increases, position changes, steps, promotions and advanced degree increases
• * The 2016 Classified Wage Study had an average increase of 6.36%, and includes the annual 3.00% July 1 increase
• ** The 2022 Classified Wage Study had an average increase of 11.57%, and includes a 4% annual increase plus 7.57%, on average, salary study increase
• *** The 2024 Administrator Wage Study had an average increase of 16%, and includes a 3.5% annual increase

In addition to wages, classified — and all COCC employees — receive comprehensive benefits, including generous health coverage for employees and their families, tuition waivers and professional development support, public service loan forgiveness eligibility and employer-paid contributions to the Oregon Public Employees Retirement System (PERS).

In 2024, the College’s Board of Directors adopted a General Fund reserve policy to be a minimum of 29%, equivalent to approximately 3.5 months of operating resources. Current projections show reserves below that target, at 14.81% for 2025–26, or less than two months of operating resources.

“Over 80% of the College’s expenses are personnel-related," said Erica Skatvold, COCC Board Chair. "Our funding streams are the federal government, state government, county taxes and student tuition and fees.

"This reserve fund exists to ensure that the College could continue to pay employees, maintain low tuition for students, and complete projects or run operations during unexpected events such as federal or state funding cuts or halts to payments.

"For example, our sudden loss of $3 million in federal funding last year was supplemented by the reserve fund so that the College operations and projects could continue to run uninterrupted. With the unanticipated withdrawals over the past year, we do not anticipate being able to return the fund back to its board-approved size for many years. This is a concern for us as we always want to ensure that the College can continue to run and pay employees in uncertain times, like what we are experiencing today."

Because salary increases are a recurring budget commitment, accepting the union’s proposal would place sustained structural pressure on the College’s operating budget and significantly accelerate the depletion of reserves over time. This would likely result in substantial tuition increases, as well as a decrease in programs and services to students across COCC's four campuses in Central Oregon.

Under Oregon law, both parties will now submit cost proposals and enter a statutory cooling-off period. The College remains committed to fair, equitable and data-driven compensation for all employees.

For more information, or for current status updates, please visit https://cocc.edu/negotiations.