Why are California state workers so mad at Gavin Newsom? Spoiler alert: Pay cuts

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The state workers who are planning the first-ever statewide walkout in 44 years this week once were on much better terms with their boss, Gov. Gavin Newsom.

SEIU Local 1000, state government’s largest union, kicked in one of the single biggest  checks to Newsom’s 2018 campaign, a $500,000 contribution. It followed up with $1 million more to help Newsom fend off a recall in 2021. 

That alliance made sense for the union, especially considering that Newsom’s Republican opponents were much less friendly to labor.

But today the two sides are far apart with Local 1000 preparing its first statewide strike since signing its first collective bargaining agreement in 1982 as it accuses Newsom of bad-faith bargaining. Its members are trolling Newsom online with memes likening him to infamous Theranos founder Elizabeth Holmes, caricaturing him as a sci-fi villain and mocking his presidential ambitions. 

What happened to the labor love fest?

At the bottom line, Newsom was stingier with public employees than voters who think of him as a labor-aligned Democrat might assume. He demanded wage reductions from state workers over three years of his tenure and limited raises to 3% in financially flush times. He also took a hard line in calling employees back to the office four days a week after many grew accustomed to working from home during the COVID-19 pandemic. 

“The fact the state has refused to bargain in good faith is what got so many members active,” said Anica Walls, president of Local 1000. The union represents about 100,000 workers. “They’re just kind of tired of always feeling the budget is balanced on state employees’ backs.”

That feeling goes back more than 20 years for some California public employees. Like many workers, they accepted furloughs and wage reductions during the Great Recession. That period lasted from 2008 to 2013 under former governors Arnold Schwarzenegger and Jerry Brown. But Brown then pressed for more concessions, including an additional paycheck deduction to fund retiree healthcare and higher worker contributions toward pensions.

Union leaders had high hopes Newsom would end the trend of temporary pay cuts and givebacks, as shown by the campaign contributions he gained in 2018.  

It didn’t work out that way.

Here’s a look at some of the issues that led the state’s largest public employee union to break with Newsom and put him on the spot with its first statewide strike.

Money, money, money

California state government spending surged during the Newsom administration, climbing from $201.4 billion in the 2018-19 financial year to $321 billion in Newsom’s 2025-26 budget. That’s a 59% increase.

Payroll is up, too, but at a slower rate. Compensation for state workers hit $25.2 billion in 2025, about 32% more than 2019.

To be sure, Newsom gave bonuses to many public employees — especially prison staff — when the state was flush with money just after the pandemic. But he’s been thriftier with wage increases. They topped out 3% in most contracts.

Meanwhile, Newsom at two key moments pressed public employees to accept pay cuts. The first happened in the panic of the early pandemic when the governor braced for a severe recession. Unions agreed to wage cuts of roughly 9% and in exchange workers received days off that they could save and bank for later. 

The second wage cut happened in 2025 when the governor sought to close a severe budget deficit. Most unions, including Local 1000, again accepted deals for two years of wage reductions in exchange for days off. They also agreed to defer raises until next year. 

One union did not accept those terms, the California Association of Professional Scientists. The scientist union was the first to strike against Newsom, holding a three-day walkout in 2023. It viewed the contract it negotiated in 2024 as critical, and it didn’t want to give up its raises when Newsom asked.

But, just before an agreed-upon raise was supposed to take effect last summer, it learned that the state budget didn’t include money for the wage increase.

The conflict again angered public employees who expected a pay boost. The union appealed to state lawmakers, who funded the raises in a follow-on spending bill.

“We negotiated that collective bargaining agreement in good faith and believe a deal is a deal,” said the union’s vice president, Justin Garcia. 

Working from home

California government changed overnight during the pandemic, when Newsom ordered employees to work from home unless the nature of their job required them to report to a prison or state hospital. That was a major cultural adjustment for a bureaucracy known for time cards, rigid schedules and a refusal to pay for workers’ office parking.

The Newsom administration commended workers for making the change and it publicized a dashboard that showed state employees were just as efficient at home as they were in the office.

But as time passed Newsom said he grew concerned that remote work stifled the in-person collaboration that he argued was important for a successful organization. He called employees back to the office two days a week in 2024, and four days a week beginning last summer. 

Many state workers want more flexibility. They point to a 2025 state audit that found the state could save $225 million a year by allowing more remote work. 

Retirement plans diverge

State workers hired before 2013 have a better retirement deal than public employees who joined since then. That issue is not front-and-center in the Local 1000 strike, but it’s bubbling up as newer workers learn about their colleagues’ benefits. 

Former Gov. Brown championed the law that trimmed pension benefits. It came out of the Great Recession, which caused California’s major pension funds to hemorrhage billions of dollars and highlighted a generous pension enhancement that former Gov. Gray Davis had signed into law a dozen years earlier. 

Now, public employees work longer and pay more of their own income toward their pensions. Newsom last month vetoed a bill that would have sweetened retirement formulas for police and firefighters, a proposal that likely will return to Newsom’s successor in the near future. 

“What people thought before was a cush state job because we had good retirement, the ability to retire with a pension, that does not look the same to people who came after 2013,” said Walls, the Local 1000 president.

Where else can they go?

Local 1000 and other state government unions might be frustrated with Newsom, but they tend to get a better hearing from Democrats than Republicans. Schwarzenegger, after all, championed four failed ballot measures that would have stripped them of their power and influence. 

“They (unions) have to make converts in the church in which they worship,” said Don Perata, a union-aligned Democrat and former Senate president pro tem who battled with Schwarzenegger. 

He praised Local 1000 members for carrying state government through the pandemic and for taking on difficult jobs to serve Californians. He recognized governors and lawmakers have to pass balanced budgets, and said that means they should be more careful in running up the cost of programs that might eat away at funding that could be used to pay public employees better. 

“It’s past time to show there’s recognition and not just by blowing smoke at them,” Perata said. 

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