State negotiators have reached tentative contract agreements with two major state employee unions including the largest state-worker union, the Washington Federation of State Employees, and the 5,200-member Teamsters.

Both agreements call for a 3.2 percent wage increase starting July 2005, plus second-year increases that expire a year after they go into effect.

Both contracts address pay for employees – such as social workers, park rangers and dental assistants – whose salaries have lagged far behind market rates for private sector workers in similar jobs. Under the agreement, those wages would rise to within 25 percent of market rates.

The agreements also hold the line on healthcare costs for state employees, reflecting a multi-union agreement earlier this month that would limit employee contributions for healthcare to 12 percent of total premium costs.

The tentative agreements include a second-year wage increase of 1.6 percent for the Federation and 2.9 percent for the Teamsters, which represents a majority of the state’s public safety workers.

If state workers represented by the unions ratify the agreements, and funding is approved by the Legislature, the wage increases take effect July 1. Teamsters will begin voting immediately on whether to ratify the agreement.

State officials say they are still negotiating with remaining unions, and that several have agreed to terms of a health care package, which keeps the employee contribution to 12 percent of total premium costs.