San Francisco Supervisors Approve Labor Deal

The agreement secures a 12 percent raise and layoff protections for more than 22,000 city employees.

Updated on Oct. 21, 2026 in Unions

Bold flat-color editorial illustration of a stylized neoclassical civic archway, symbolizing stability in San Francisco's municipal labor policy. — The San Francisco Board of Supervisors unanimously approved a new labor memorandum providing raises and layoff protections for 22,000 city staff members. AI Illustration. Upload story photo >

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The San Francisco Board of Supervisors unanimously approved a new labor memorandum of understanding for city staff. The deal covers over 22,000 workers across six unions and includes significant compensation increases.

Why it matters

This agreement aims to establish labor peace following months of volatility that included threatened layoffs and potential strikes. It provides stability for the municipal workforce while resolving outstanding contract tensions.

The agreement grants a 12 percent salary increase to city employees over four years. It represents 22,000 workers, covering two-thirds of the city's total public workforce.

The players

San Francisco Board of Supervisors

This body serves as the legislative branch of the San Francisco city government.

Mayor Lurie

This official serves as the head of the San Francisco municipal executive branch.

SEIU Local 1021

This labor organization represents a wide array of public sector workers in California.

IFPTE Local 21

This union represents professional and technical employees across various local government agencies.

Municipal Executives Association

This entity represents management and executive-level staff within the city of San Francisco.

The details

The newly approved deal prohibits layoffs for permanent civil service employees until mid-2029. Six labor unions, including SEIU Local 1021, IFPTE Local 21, and the Municipal Executives Association, are parties to this memorandum.

April 2026: Mayor Lurie proposed potential layoffs to city staff.
May 2026: Union leadership issued threats of a potential strike.
October 20, 2026: The Board of Supervisors voted to approve the labor agreement.
June 2029: The current layoff protections for permanent employees are set to expire.

Political Context

Opposing groups and budget hawks have previously criticized the city's approach to long-term personnel liabilities. Some fiscal advocates argue that such agreements constrain the city's financial flexibility during future economic downturns.

The agreement ensures the continuity of essential public services by mitigating the risk of labor strikes. Taxpayers and residents can expect more stable municipal operations through the 2029 expiration date.

The takeaway

This deal provides long-term employment security for a significant portion of the city's workforce. Workers covered under the agreement should review their updated compensation schedules to understand how the four-year raise structure applies to their specific roles.