Moore, AFSCME miss deadline and fail to reach contract agreement

by Bryan P. Sears, Maryland Matters
January 5, 2026

The largest union in state government said it has rejected a contract proposal offered by Gov. Wes Moore.

The announcement came hours before Moore, a Democrat, announced reaching an agreement with unions representing six other groups of state employees. The failure to reach an agreement with the American Federation of State, County and Municipal Employees Council 3 represents the first time Moore’s administration has missed the annual Dec. 31 deadline to reach agreement on annual salary increases.

“AFSCME Maryland Bargaining Team members did not accept Governor Moore’s proposal that continues to lag behind the rate of inflation and understaff state services,” the union said in a statement. “Throughout bargaining, the administration had offered wage increases that did not keep up with inflation and failed to fully correct the AFSCME wage scales that lag behind a majority of state employees.”

Over the last several months, the union has taken to social media to highlight the state of contract negotiations and urge members to pressure the governor by contacting his office. The union represents about 50,000 workers statewide with more than half of those working in state government positions.

Two days before Christmas, the union ramped up pressure and unveiled a series of unfair labor practice complaints it had filed against the administration.

A spokesperson for the governor said at the time that Moore “has consistently stood up for Maryland’s workers, making clear that supporting labor and protecting our workforce are central to this administration’s work.”

Maryland union files unfair labor practice claims against the state

But Moore also faces another difficult budget year.

Last year, Moore and the legislature raised $1.6 billion in taxes to close a projected $3.3 billion structural budget gap. The solution was meant to fill that hole and offer a $300 million cushion for the coming year — a brief election year respite before having to face crushing deficits driven by required spending on K-12 education.

Another component of that effort was a buyout program. More than 300 employees took a payout to leave their jobs. In all, the state eliminated more than 500 positions including 170 that were vacant.

But last fall Moore and lawmakers were told those efforts fell short. The state again faces a $1.5 billion budget gap in the coming fiscal year.

A legislative panel is recommending that Moore hold the line on hiring except in critical positions. Such a recommendation adds another hurdle to Moore’s promise to rebuild state government.

On Monday, Moore’s office said it reached agreements with six other labor unions. The agreements include a 2% on average pay increase for more than 11,000 state employees, according to a statement issued by Moore’s office, which said the raises will cost roughly $37 million.

“These economic agreements represent an important step and are the result of months-long good-faith negotiations, reflecting a shared commitment between the State and its labor partners,” Moore said in a statement. “Our goal has always been to balance fair compensation with fiscal discipline. At a time when families and governments are both facing real financial pressures, the State of Maryland is continuing to prioritize the employees who work in service of Marylanders every day.”

The state negotiates annually with various unions on salary increase for the coming year. The deadline for such agreements in Dec. 31.

The statement said Moore “remains committed to reaching agreements with all employee organizations and looks forward to continuing discussions in the spirit of collaboration and transparency.”

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The unions agreeing to contract terms were the American Federation of Teachers — Healthcare, the American Federation of Teachers — Maryland School for the Deaf, the Fraternal Order of Police for Maryland Transporation Authority officers, the International Association of Fire Fighters for firefighters at Baltimore-Washington International Airport, the Maryland Professional Employees Council and the State Law Enforcement Officers Labor Alliance.

AFSCME, however, was unsatisfied with Moore’s offer.

The union said in a statement it wanted raises that kept pace with the rate of inflation, provided additional pay increases on top of the cost-of-living offerings, and offered more job security for state employees.

In a statement, the union said it offered Moore “proposals that raise revenues, curtail wasteful spending and procurements, as well as combine duplicative programs that would generate millions in savings. Despite these efforts, the Governor has not embraced these suggestions.”

Maryland Matters is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Maryland Matters maintains editorial independence. Contact Editor Steve Crane for questions: editor@marylandmatters.org.