The UT administration and AFSCME 2415, which represents almost 2,000 employees on the health science campus, have been working without a contract since September 30 of last year.
Last year, the employees rejected the university's offer and brought in a fact finder. On Friday, the UT board of trustees rejected the fact finder report with an 8-to-0 vote.
The union president says the report calls for a three percent pay raise this year, a two percent pay raise next July and a three-percent signing bonus, which is roughly equivalent to $1,000 for each full-time employee.
UT president Lloyd Jacobs released a statement saying, "We had great hopes that this process would bring us one step closer to bringing these lengthy negotiations to a close. Unfortunately, we are left with a report that lacks clarity and fails to provide a blueprint to reconcile our differences. We sincerely look forward to continuing the dialogue as we continue to bargain in good faith."