Washington State Ferries (WSF) operates a fleet of 21 vessels serving 10 routes and 20 terminals. WSF has approximately 2000 employees represented by 16 labor unions. WSF employees have collective bargaining rights and bargain with the state over wages, hours, and other terms and conditions of employment. On a biennial basis, labor unions collectively bargain with the state, which is represented by the Governor or their designee. The Office of Financial Management (OFM) produces a salary survey of public and private employees who perform directly comparable but not necessarily identical work to WSF work groups for use in bargaining negotiations. For this survey, OFM considers employees along the west coast of the United States, including Alaska, and British Columbia. 

WSF employees have interest arbitration procedures to resolve impasses over contract negotiations which cannot be solved through mediation. Under interest arbitration, an impartial third party makes decisions regarding the unresolved terms of the contract. There are statutory procedures for parties to select arbitrators and factors the arbitration panel must consider when making its decision. 

OFM must contract with a nationally recognized human resources management consulting firm which has experience with conducting compensation surveys to produce a salary survey of public and private sector employees whose work is comparable to WSF employees. The final, unredacted salary survey must be made available to all bargaining parties by April 1st of each even-numbered year. OFM must seek input from employee organizations when gathering data for the survey. OFM must also consult available collective bargaining agreements, as allowed under law, when determining the wage scales for July 1st of the ensuing year.

For deck department, terminal department, engine room, and all other covered employees not specifically listed, the survey must compare the wages, hours, employee benefits, and conditions of employment of WSF employees with public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable, but not necessarily identical, work. 

Certain WSF work groups must be compared with specifically enumerated groups of employees in accordance with the following:

• the survey for masters and mates must include comparisons with business entities whose operations include the movement of unlimited tonnage vessels, in the designated pilotage waters of the states along the west coast of the United States, including Alaska;
• the survey for engine room employees must include comparisons with private sector shipping employees, and public sector employees on the east coast who operate double-ended vessels with similar horsepower that carry more than 2000 passengers; and
• trades at Eagle Harbor must be compared with public and private sector employees in the Puget Sound region, including the Port of Seattle maintenance facility, Port of Tacoma maintenance facility, King County maintenance facility, and state prevailing wage rates for shipyard and building trades employees.

In the event WSF employees and their employer go to interest arbitration, the arbitration panel must consider the wages, hours, employee benefits, and conditions of employment of those public and private sector employees as described above.