Compared to the city\u2019s prior June proposal<\/a> to update workers\u2019 three-year contract, the new offer<\/a> includes a number of sweeteners<\/a> for city employees, including a lump-sum cash payment and expanded protections against the displacement risks posed by artificial intelligence. Nevertheless, it still falls far short of the wage increases workers had demanded.<\/p>\n \u201cWe secured a contract that recognizes and respects our workers, and these are the people that keep the city running,\u201d Carlos Murillo, an engineer at San Jose Mineta International Airport and an IFPTE union member who serves on the bargaining team, told San Jos\u00e9 Spotlight. \u201cIt\u2019s not everything we wanted or everything working families in our community needed, but it\u2019s a step in the right direction.\u201d<\/p>\n The unions and the city still need to ratify the agreement for it to be finalized. The unions are expected to hold membership votes early next week.<\/p>\n Negotiations have been taking place since February to replace workers\u2019 last three-year contract, which expired at the end of June after workers rejected what the city called its \u201clast best and final offer.\u201d<\/p>\n With contract talks largely stalled, thousands of union members voted in August to authorize a strike should negotiations remain frozen. Had workers followed through on their strike threat, it would have been the largest labor action<\/a> to take place in San Jose since 1981, according to union officials.<\/p>\n The city\u2019s June offer included wage increases that amount to 9% over the next three years.<\/p>\n But workers said such an increase \u2014 which falls short of the 15% increase provided by the contract that just expired \u2014 would not even keep pace with inflation in the South Bay. Furthermore, they contend that lagging wages have led city workers to depart in large numbers, degrading city services.<\/p>\n Under the new tentative agreement, San Jose is offering to grant workers a lump sum cash payment equivalent to 1% of their base annual wages \u2014 a payment officials said is intended to help offset rapidly rising cost of living expenses. In addition, the agreement also includes a promise of another 1% pay increase in the contract\u2019s third year if the city\u2019s budget hits certain benchmarks.<\/p>\n \u201cThese agreements avert a strike and the interruption of city services,\u201d city administrators said in a statement issued Friday to announce the tentative agreement. \u201cWe are grateful to our dedicated workforce who lead with compassion, serve with pride and make a difference in our community every day.\u201d<\/p>\n San Jose is facing tight budget constraints. The $5.5 billion budget the city passed in June<\/a> balanced a $50 million deficit by tapping into reserve funds and making wide ranging service cuts. Meanwhile, the city is expected to face deficits topping $10 million for the next two fiscal years<\/a> as well.<\/p>\n Earlier this week, South Bay union leaders ratcheted up the pressure on San Jose even more when the politically influential South Bay Labor Council authorized its 105 member unions to take strike actions in solidarity with any potential strike of San Jose workers.<\/p>\n The final agreement also includes measures intended to address worker fears<\/a> related to San Jose\u2019s rapid embrace of artificial intelligence tools. Among those safeguards, the agreement prohibits the city from using AI software as the sole factor in decisions related to hiring, firing, promotion and employee discipline.<\/p>\n San Jose workers are hoping to avoid a scenario in which the city uses new AI-powered technology to save money by automating tasks and cutting down on employee headcount.<\/p>\n \u201cI think the guardrails that the city agreed to give us safety nets surrounding that fear,\u201d Nick Rovetto, a city employee and president of the San Jose Chapter of AFSCME, told San Jos\u00e9 Spotlight. \u201cIt is going to inevitably be a continued conversation.\u201d<\/p>\n
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