SF Supervisors Approve Union Deal Giving 22,000 City Workers a 12% Raise and No Layoffs Through June 2029

The San Francisco Board of Supervisors on Tuesday, Oct. 20, 2026, unanimously approved contract extensions between Mayor Daniel Lurie's administration and six city worker unions, giving more than 22,000 employees a 12% raise over four years and a promise of no layoffs for permanent civil service staff through June 2029.

Why it matters: The deal covers more than two-thirds of the city's workforce, according to Mission Local, and ends a year of open conflict between City Hall and labor over how to close San Francisco's budget deficits.

What the agreement does

The legislation for SEIU Local 1021, the city's largest union, shows the terms. It extends the current 2024-2027 contract through June 30, 2031, sets base wage increases for fiscal years 2027-28 through 2030-31, and says the city "shall not issue any layoff notices or lay off any Permanent Civil Service employees through June 30, 2029." It also lets the city and unions set up a citywide labor-management committee.

Along with SEIU Local 1021, the deal covers IFPTE Local 21, which represents professional and technical engineers, and the Municipal Executives Association. The San Francisco Chronicle reported that unions for transportation employees, pipe trades workers and public works crews were also part of it. The workers covered range from plumbers to engineers.

The Chronicle reported that the unions' existing contracts already include raises next year, which bring total pay increases to 14.5% through 2031, according to the mayor's office. The raises are comparable to those the city earlier agreed to give police officers and firefighters. Rank-and-file members still had to ratify the deal after it was announced.

Who is not covered by the layoff promise

The no-layoff guarantee applies only to permanent civil service employees. Criss Romero, executive director of the Municipal Executives Association, told Mission Local that many of the managers and supervisors he represents are exempt from civil service, including some executive assistants and secretaries. They still get the 12% raise.

"A union contract is a living document," Romero said. "We will always have to deal with some issues that come up."

Vince Courtney of the Northern California District Council of Laborers called the job protection unusual. "I think the layoff protection is over-the-top unique," he told Mission Local. "I've never seen it before, and I've been doing this 25 years."

How we got here

In April, Lurie proposed layoffs of city employees, and union leaders promised to fight. In May, they threatened to strike, Mission Local reported. A strike became a real possibility after a state employment board struck down the city's local ban on strikes by City Hall staff, according to the Chronicle.

The current contracts were not set to expire until June 30, 2027, so the extension settles labor costs well before the next budget fight. The Chronicle reported that the mayor's office said the city will have new agreements covering more than 80% of its workforce once the extensions are ratified.

The deal lands two weeks before the Nov. 3 election, when San Francisco voters decide 10 local measures, including Proposition F on the mayor's power over department heads. Across the bay, Oakland's own city unions have threatened a strike during contract talks.