SALEM — The state has reached a tentative two-year agreement with the American Federation of State, County and Municipal Employees, the union that represents the second-largest group of state workers.

The agreement was reached late Tuesday after a 14-hour bargaining session.

It is likely to set the pattern for other labor settlements, although this one applies only to 3,000 AFSCME-represented workers outside the Department of Corrections.

Key provisions, as announced by the union Wednesday:

• Cost-of-living adjustments totaling 5 percent over the contract; 2.25 percent on Dec. 1, 2015 and 2.75 percent again on Dec. 1, 2016.

• Health insurance plans with options of a 95-5 percent cost split for employees who choose the more expensive of the two plans, or 99-1 percent for those choosing the plan of less cost. Employees once had fully paid state insurance, but cost-sharing has been instituted.

• The day after Thanksgiving is now a paid holiday for AFSCME-represented state employees.

“This agreement makes particular advancements on health care issues and equitable wage increases,” said Ken Allen, the union’s executive director and chief negotiator. “We will wholeheartedly recommend passage to our membership.”

The ratification process will start in about two weeks.

Negotiations are continuing with the 3,000 AFSCME-represented employees in the Department of Corrections, and with other unions, including Local 503 of Service Employees International Union, which represents more than 16,000 state workers. SEIU also represents workers at Oregon’s public universities.

The two-year budget sets aside $120 million for pay and benefit increases. Contracts are negotiated between the Department of Administrative Services and the unions. Lawmakers release the money through the Emergency Board, which meets between sessions, but have no other role in the process.

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