The University System of Maryland (USM) has agreed to pay out raises outlined in AFSCME’s union contract after two months of back-and-forth and legal disputes.
AFSCME Maryland – the largest union in state government – immediately started putting pressure on USM when negotiated 2.5% merit increases did not go into effect on July 1.
USM said Gov. Wes Moore “failed to act consistent with law to appropriate all funds necessary to honor the negotiated wage increase,” but the governor’s office argued otherwise.
The labor union ultimately filed a lawsuit against Moore and USM, arguing the university system was legally obligated to release the state funds allocated by the governor.
But on Tuesday, AFSCME leadership announced they would be withdrawing the lawsuit and the non-faculty employees the union represents would be receiving the wage increases, which USM agreed to pull out of their fund balance for the current fiscal year.
The Moore administration agreed to build the $13.8 million into USM’s base budget for fiscal year 2028.
“Maryland's public colleges and universities are only as strong as the workers behind them, and this agreement is a reflection of that principle. As higher education systems continue grappling with unprecedented challenges nationwide, this resolution delivers fair wages to the nearly 5,700 employees across USM's campuses who deserve it,” Gov. Wes Moore said in a statement. “Through partnership, we’ll continue building a world-class higher education system in Maryland for the students who depend on it.”
Claudette Booth, President of AFSCME Local 3895, representing nearly 100 workers at the University of Baltimore, credited the governor for putting pressure on USM and hopes the agreement sets the tone for a new round of negotiations with the university system.
“I'm really happy – really happy that the governor did come to work with us and work with the USM to really ensure that the USM did honor our contract,” Booth said. “It gave us a really good reason to look forward to the next negotiation and bargaining that we're going into now, to that extent, we do have the governor and the state of Maryland to work together.”
AFSCME and USM are beginning to negotiate a new three-year wage and benefits deal that is set to start in July of 2027.
The last round of negotiations between the two parties took almost two years.
“We’re grateful that we’ve been able to work collaboratively with the Governor to provide these pay increases for our employees in FY27, and we look forward to continued partnership with the Governor’s Office as we determine how to fund these raises in future years. With our budget under intense pressure, we’re happy we’ve found a way to this resolution,”
USM Board of Regents Chair Linda Gooden and Chancellor Jay Perman said in a joint statement.
AFSCME is still calling for USM to rescind staff layoffs that went into effect in the spring.
Nearly 100 AFSCME-represented USM employees were laid off, which accounts for roughly 80 percent of employees that lost their jobs.
The agreement also comes just two months before Marylanders will vote to approve the Arbitration Reform for State Employees Act of 2026 on their November ballots.
The new addition to the Maryland Constitution would require the governor to include the appropriations necessary to fund the terms agreed upon in their recommended budget to the General Assembly.
The new law also creates the framework for calling in a third-party arbitrator if the governor’s office and union representatives cannot reach an agreement over wages – this would not apply to negotiations with USM.
AFSCME has not received confirmation from USM as to when the 2.5% raises will go into effect.