San Jose has reached tentative labor agreements with its largest employee unions, and city leaders say a threatened strike is off the table. In a statement released Friday, the city said residents should expect no disruption to city services.

The deals cover the Municipal Employees' Federation, known as MEF, and the International Federation of Professional and Technical Engineers Local 21. Local 21 represents three city bargaining units: the City Association of Management Personnel, the Association of Engineers and Architects, and the Association of Maintenance Supervisory Personnel.

What is in the deal

According to the city, the agreements run three years and include:

  • A 3% wage increase in each year of the contract.
  • A possible extra 1% raise in the third year, if the city's General Fund meets surplus thresholds.
  • An immediate one-time lump-sum payment equal to 1% of pay, which the city described as help offsetting recent price increases.
  • Safeguards related to the use of artificial intelligence.

The city said negotiations began in February. In its own announcement, Local 21 said the agreement came after more than eight months of organizing, collective action, mediation and fact-finding. The union said its priorities included guardrails on AI and keeping experienced employees from leaving city jobs.

Union says retention was the point

Carlos Murillo, an associate engineer at San Jose Mineta International Airport and a Local 21 vice president for the South Bay, said in the union's release that the progress "helps ensure that San Jose can continue to recruit" the skilled professionals that communities rely on. The union said workers from every city department took part in the campaign.

What happens next

The agreements are not final yet. The city said union members are expected to vote on ratification during the week of October 12, with results expected October 19. Under San Jose's process, ratified agreements also go to the City Council for approval in open session.

For residents, the immediate takeaway is simple: libraries, permit counters, parks programs and other city services should keep operating normally while members vote.