Committee Advances Six Union Deals With 12% Raises, No-Layoff Pledge
Government Audit & Oversight Committee • San FranciscoOctober 15, 2026
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San Francisco's proposed labor deal took its first formal step on Oct. 15, 2026: four more years of contracts, 12% in raises and no layoffs through mid-2029 for more than 22,000 city workers. The Government Audit & Oversight Committee voted 3-0 to send six union contract extensions to the full Board of Supervisors after amending one at the union's request. Supervisors asked how much the deals will cost in the years ahead. Staff did not give an answer.
- Six union contracts covering 22,000+ workers forwarded 3-0 to the full Board
- 12% raises over four years plus a no-layoff guarantee through June 30, 2029
- Out-year budget impact unanswered; HR referred the cost question to the mayor's budget office
- Local 21 deal amended 3-0 to remove citywide labor-management committee language
- Eight more ratified union extensions will come to the committee later
Four More Years: City's Labor Bargain Moves Forward
The basics: An MOU, or memorandum of understanding, is the contract between the city and a union. These "first amendments" would extend the 2024-2027 MOUs with six unions: IFPTE Local 21, the Municipal Executives Association, SEIU Local 1021, the San Francisco District Attorneys Investigators Association, Laborers Local 261 and Plumbers Local 38. Members of all six unions have ratified the extensions.
Why it matters: The deals would set wages and job security for a large share of the city workforce through June 30, 2031. Workers get predictable pay and protection from layoffs. The city takes on a fixed labor cost over several budget years.
Where things stand: Human Resources Director Carol Isen said the mayor asked unions whose contracts expire in June 2027 to accept a four-year extension built on "guaranteed annual wage increases, and a commitment of no layoffs through June of 2029." The package also expands labor-management committees.
Employee Relations Director Ardis Graham said the deal "involves a general wage increase that totals 12% over the 4-year period," paid in four 3% steps. The no-layoff guarantee would run "between the moment that this board chooses to adopt these MOUs and approve them all the way to June 30th, 2029," Graham said.
The new labor-management structure adds a mediator step and possible expedited arbitration. Most unions can bring three issues a year to the mayor or HR director. SEIU can do so twice a year.
Who's at the table: Supervisor Jackie Fielder, Vice Chair, Supervisor, District 9, pressed on that escalation process. She asked, "will the administration commit on record today that the mayor will personally attend these biannual meetings."
Isen did not make that commitment. She said it depends on each agreement's language: "In some instances, the mayor has the option to delegate, and in most instances, the mayor does not have that option to delegate."
Who's not covered: At the chair's request, Graham clarified a 67% workforce figure. That figure is measured against about 35,000 employees, including SFMTA. Isen said the charter classifies SFMTA units such as transit operators and fare inspectors as service-critical, so the SFMTA Board approves those contracts, not the supervisors. Some SFMTA laborers are covered through the larger contracts before the committee.
Decisions and stakeholder impacts: The committee forwarded items 1-6 to the full Board with a positive recommendation as a committee report. For: 3 (Alan Wong, Fielder, Stephen Sherrill), Against: 0, Absent: 0.
Supervisor Alan Wong praised staff and the unions, noting, "I used to be a labor organizer myself, having negotiated contracts on the union side with United Healthcare Workers." Committee Chair Stephen Sherrill, Supervisor, District 2, said, "I look forward to supporting this also at the full board."
The main beneficiaries are the represented workers, from SEIU's broad membership to department executives. They gain wage certainty and job security. The administration gains labor peace and a predictable cost base. Fielder's questions show that how much access workers get to the mayor will depend on the wording of each contract.
The Cost Question Goes Unanswered
Why it matters: The 12% raises lock in costs over four fiscal years. The committee did not receive a figure for those later years.
Where things stand: Sherrill asked directly: "What is the projected effect of these MOUs on projected deficits or surpluses for the overall city budget?"
Graham said that question was best left to the mayor's budget office. Isen offered only a first-year answer: "In year 1, the raises are less than what's anticipated in the 5-year financial plan." She said the remaining three years are best addressed by the budget office.
Sherrill also asked why the final raise arrives in April, before the contracts expire. Graham said, "The unions requested it to be moved up, and so the parties agreed to April 5th."
What's next: Supervisors seeking cost figures for the later years will need to get them from the mayor's budget office before or during full Board consideration.
Local 21 Opts Out of Citywide Committee
Where things stand: Mark Weirick, Regional Director, IFPTE Local 21, asked the committee to correct his union's MOU. The requested changes were:
- Updated calendar dates
- A new Appendix H on reviewing misclassified temporary appointments for conversion to permanent civil service
- An added PSC pilot procedure agreement
- Corrected names on the signature page
- Removal of a citywide committee provision
On that last change, Weirick said, "We've also requested the removal of the Appendix J citywide labor management committee letter of agreement, as this was presented as an opt-in and Local 21 is currently not interested in doing so."
He said Graham agreed to the changes and that they do not substantially alter the ratified agreement.
Decisions and stakeholder impacts: Sherrill moved to amend file 261080 to strike the citywide labor-management committee references. For: 3 (Wong, Fielder, Sherrill), Against: 0, Absent: 0.
The amendment makes the legislation match what Local 21 members ratified. It also shows that the new citywide committee structure is optional, and at least one major union has declined to join.
Minor Items
- Litigation settlements: The committee forwarded items 7-20, which are 11 ordinances and three resolutions settling lawsuits and claims against the city. The vote was 3-0, with no discussion and no public comment. No dollar amounts were stated.
Looking Ahead
The six labor extensions now go to the full Board of Supervisors. The clerk cited an Oct. 20 Board date for these items, while a separate announcement referenced Oct. 27. Eight more unions have ratified extensions that will come before this committee later.