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 Outsourcing for Covered Services

UC policy protects against outsourcing of services that can be provided by university employees.

A University of California policy implemented in November 2019 protects against excessive outsourcing.

The University of California is committed to maintaining a strong in-house workforce and supporting living wages and benefits for employees, as is evidenced in Article 5 of the University Collective Bargaining Agreement.  To reinforce this commitment, in November 2019, the UC Board of Regents approved Regents Policy 5402, which generally prohibits contracting for services and ensures equitable treatment for any allowable contract workers.

Policy Summary/Guiding Values and Principles

There shall be a general prohibition on contracting out for services and functions that can be performed by University staff. Under exigent and limited circumstances when an outside contract is a solution of last resort, the following shall apply:

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UC Must Value and Protect Its Employees

The University shall prioritize the use of its employees to perform functions and services whenever possible and the use of outside contractors will not cause or facilitate the displacement of university employees.

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Equal Pay for Equal Work

The labor conditions of contract workers shall be protected by ensuring they receive wages and benefits equivalent to what the University provides to its employees, and providing those who have performed services to the University on a long-term and continuous basis the opportunity to become University employees.

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UC Must Be a Model Employer

Requirements governing state agencies and departments under California Government Code Section 19130 shall serve as minimum standards and, whenever reasonable, shall be exceeded.

Since its founding, the University's public mission has always been to unlock the doors of economic opportunity, uplift the human condition, and serve as an antidote to poverty. This begins from within.

UC's employment and contracting practices for all individuals working on its campuses, medical centers, and laboratories must model what it demands of other employers. In particular, this means the University must remain vigilant in ensuring its use of contract workers does not contribute to the rise of poverty-level jobs, thereby exacerbating growing economic inequality and reliance on taxpayer-funded "safety-net" services. Contracting out should be used sparingly and treated as an option of last resort to address temporary needs, not as a means to replace employees with lower-wage contractors.

As a public trust and one of the largest employers in California, the University is committed to protecting and valuing the lives of those it serves, educates, and employs.


Outsourcing Resources