The california state University Employees Union (CSUEU) is escalating its efforts to secure fair compensation and job security for its members as the deadline for their contract negotiations approaches. On June 16, 2026, union members at San Francisco State University disrupted bargaining sessions to highlight their demands, which include better pay and job stability.
The union’s actions come at a critical time, as the CSU system has recently received a significant boost in funding. The State budget allocated a record $264.8 million in new ongoing funding to the CSU, but workers argue that they have yet to see this reflected in their paychecks.
Years of Financial Instability and Recent Funding Boost
The CSU system has faced significant financial challenges in recent years. In 2026, it grappled with a $218 million operating deficit and warned of a projected $1 billion shortfall. In 2026, Governor Gavin Newsom moved to cut hundreds of millions from its ongoing funding. These financial strains led campuses to freeze hiring, leave vacancies unfilled, consolidate classes, and lay off workers.
This year, however, the state budget delivered a record $264.8 million in new ongoing funding to the CSU. Workers argue that they have yet to see this funding reflected in their paychecks, despite the union’s efforts to negotiate fair compensation.
Union’s Demands and Escalating Actions
The CSUEU represents 36,000 staff and student workers across the CSU’s 22 campuses. The central contract, which covers staff in bargaining units including healthcare, facilities, custodial, technical, and administrative workers, is set to expire on June 30. Additionally, student assistants who unionized in 2026 are bargaining for their first-ever contract, and roughly 1,000 workers employed by private service contractors on campus are also in first-contract talks.
Katie Murphy, chief steward for the union’s San Francisco State chapter and an academic office coordinator in the School of Social Work, highlighted the financial struggles faced by many workers. ‘Going to the grocery store feels like a luxury extravagance,’ she said, emphasizing that the current pay structure does not support a living wage in California.
The union’s strategy includes escalating demonstrations to show management that workers are serious about their demands. Murphy noted that the union has already forced the CSU to change its bargaining plans on several occasions, demonstrating their power and influence.
Student Assistants’ Unique Challenges
For student assistants, the stakes are different as they are starting from scratch in their contract negotiations. Chloe Murray, a peer mentor at the library who earns minimum wage, had to take a second job just to afford living in San Francisco. She emphasized the need for $21 an hourholiday pay, and reduced parking fees to make ends meet.
Murray also pointed to rising tuition costs, which have increased by 6% each year under a plan adopted two years ago. Despite department cuts and faculty layoffs, tuition continues to rise, leading to a worse education for a higher cost.
CSU’s Response and Future Actions
The CSU has stated that it is bargaining in good faith ‘toward achieving an agreement that recognizes and supports the work of our staff in fulfilling CSU’s mission.’ The university respects the right to peaceful protest but has not yet addressed the specific demands of the union.
If no fair contract is reached, the CSUEU is prepared to walk out and stay out, indicating a willingness to escalate their actions further. Catherine Hutchinson, CSUEU President, emphasized the importance of supporting essential frontline staff who help students succeed.
The rally at San Francisco State was the second action of its kind in the past month, following a wave of labor unrest across California’s public education sector. As the contract deadline approaches, the pressure on both the union and the CSU to reach an agreement intensifies.
