About 25000 San Francisco City Hall Employees Expected to Get 12% Salary Increase Over 4 Years, Union Reaches Preliminary Agreement
San Francisco Mayor Daniel Lurie has reached a preliminary agreement with several major unions. Approximately 25000 municipal government employees may receive a 12% salary increase in the next four years. If the agreement is passed, full-time union employees will not be laid off before June 2029. This agreement still requires a vote from all union members. After approval, it will cover over 80% of the city government employees in San Francisco.
The agreement involves the International Union of Service Industry Employees Local 1021, the International Federation of Professional and Technical Engineers Local 21, as well as unions representing employees in sectors such as public works, transportation, and skilled workers. These employees work in different departments of the municipal government, including public health, social services, street cleaning, traffic management, and administrative services.
The original contract expired on June 30th next year, and this time both parties have reached an agreement in advance to extend the contract. According to the preliminary agreement, employees can receive a 12% salary increase within 4 years. If the salary increase already agreed upon in the existing contract is also included, the total salary increase will be 14.5% by 2031.
The municipal government also promises not to lay off full-time union employees who are protected by the agreement before June 2029. This is particularly important for trade unions. Earlier this year, due to financial pressure, the municipal government demanded that all departments reduce personnel expenses and even planned to cut about 500 positions, which caused dissatisfaction among the trade unions.
The new agreement also reduces the possibility of large-scale strikes next year. The California Public Employment Relations Commission previously overturned San Francisco's restrictions on strikes by city government employees. In this way, city government employees may be able to legally strike for the first time in nearly 50 years next year. If the municipal government and the labor union cannot reach a new contract, transportation, cleaning, and other public services may be affected.
The amount of extra money that a salary increase will cost the city government has not yet been announced. San Francisco still faces long-term financial pressure, with an estimated budget shortfall of approximately $450 million by 2029.
Earlier this year, the municipal government had already negotiated contracts with police and firefighters for a four-year salary increase of approximately 14%. After ordinary city government employees receive similar salary increases, the outside world will pay attention to how the Luo Wei government can find a balance between retaining manpower, maintaining services, and controlling expenses.
The preliminary agreement will be submitted to union members for voting. If passed, the city council will also need to handle the contract and budget procedures. The total cost of a salary increase and its annual impact on the finances will also be the focus of the next round of budget discussions for the municipal government.
