DHR is pleased to announce it has reached tentative agreements with 35 of its labor unions whose contracts were set to expire June 30, 2017. These agreements extend the current contracts for two years, and provide employees with a three percent cost of living increase in each of those two years. The City’s labor unions are now in the process of ratifying the agreements. The agreements must also be ratified by the Board of Supervisors. The City and County of San Francisco is prepared to engage in full negotiations if the agreements are not ratified.

While the City is not in a recession, cutting services, or laying off employees, it is seeing indicators of slowing economic growth. This, coupled with uncertainty at the federal level, is driving the need to be disciplined, responsible, and make trade-offs when it comes to the City’s budget. That’s why the tentative agreements provide an opportunity to delay the second year cost of living increase in the case of a significant economic recession or loss of federal funding.

Assuming the agreements are ratified by employees and the Board of Supervisors, the City will be able to focus its energy and attention on issues other than contract negotiations.