{"id":3102,"date":"2026-06-17T06:01:34","date_gmt":"2026-06-17T13:01:34","guid":{"rendered":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/17\/san-diego-oks-new-city-employee-union-contracts-that-combine-raises-furloughs\/"},"modified":"2026-06-17T06:01:34","modified_gmt":"2026-06-17T13:01:34","slug":"san-diego-oks-new-city-employee-union-contracts-that-combine-raises-furloughs","status":"publish","type":"post","link":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/17\/san-diego-oks-new-city-employee-union-contracts-that-combine-raises-furloughs\/","title":{"rendered":"San Diego OKs new city employee union contracts that combine raises, furloughs"},"content":{"rendered":"
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San Diego finalized new labor contracts for most city workers Tuesday that include 10% raises over three years, but the contracts soften the impact of those pay hikes on the city\u2019s budget crisis by requiring unpaid furloughs.<\/p>\n

Read more Most Americans see freedoms under threat but core to nation\u2019s identity, poll finds<\/a><\/p>\n

The savings the city will get from the unpaid worker furloughs during the first year of the deal \u2014 the new fiscal year starting July 1 \u2014 nearly covers the cost of the 2% raises and other benefits employees get that first year.<\/p>\n

But the pay raises in the second and third years of the deal will make it harder to balance the city\u2019s budget. They will cost $16.4 million in fiscal 2028 and $50.3 million in fiscal 2029.<\/p>\n

And those challenges will be on top of budget problems created by a recent deal to lower trash fees, which will cost the city about $100 million in combined revenue during fiscal 2028 and 2029.<\/p>\n

The deals, which the City Council approved unanimously Tuesday without discussion, also create a new retiree health benefit for workers hired after 2005 \u2014 the vast majority of city employees.<\/p>\n

The deals cover about 5,400 white-collar workers, roughly 1,900 blue-collar workers and about 180 deputy city attorneys.<\/p>\n

They may serve as a sort of blueprint for three other city labor unions still in negotiations \u2014 those representing police officers, firefighters and lifeguards. But public safety employees can\u2019t take furloughs because they are front-line emergency workers.<\/p>\n

Jared Wilson, president of the union representing city police officers, said Tuesday that his union is not close to a deal but is continuing to make progress in its talks with the city.<\/p>\n

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A spokesperson for the union representing city firefighters declined to discuss the state of negotiations but said no deal has been reached.<\/p>\n

Police officers, firefighters and lifeguards are working under labor contracts that expire at the end of this month.<\/p>\n

The deals finalized Tuesday will almost certainly serve as a model for pay raises and new benefits given to hundreds of city workers not represented by a labor union.<\/p>\n

The mandatory 40-hour furloughs essentially cost workers one week of pay. They are required in both fiscal 2027 and 2028, but not during the final year of the three-year contracts.<\/p>\n

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Each of the deals has already been ratified by members of the affected unions. The council initially approved each of the deals in sessions closed to the public during April and May.<\/p>\n

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The deals each include 2% raises in fiscal 2027, 3.5% raises in fiscal 2028 and 4% raises in fiscal 2029. The raises in fiscal 2029 will be split in half: 2% on July 1, 2028, and 2% on Jan. 1, 2029.<\/p>\n

Unlike most pay raises in the private sector, these hikes are in addition to significant pay raises employees get for reaching years-of-service milestones.<\/p>\n

While the furloughs mostly cover the costs of the new benefits and higher pay, they don\u2019t quite get there. The city\u2019s costs in the new fiscal year will be an estimated $2.6 million, but the budget adopted last week included money set aside for new labor deals.<\/p>\n

The pay raises also increase the city\u2019s long-term pension obligations, worsening the city\u2019s budget crisis by raising its annual pension payment above its already record-high levels.<\/p>\n

Union leaders contend the raises are not any larger than the actuary for the city\u2019s pension system has predicted for the affected fiscal years, arguably giving the raises a neutral impact on the city\u2019s $3 billion pension debt.<\/p>\n

While critics could say a budget crisis is an odd time for employee raises, union leaders and city officials repeatedly say it\u2019s important for city workers to keep pace with their counterparts at other agencies.<\/p>\n

A new salary survey comparing the pay of San Diego\u2019s white-collar workers to their counterparts at 22 other government agencies found that they still fall short by 6% on average. That\u2019s despite those workers getting 23% raises over three years in 2023.<\/p>\n

The deals cover workers represented by three unions: the Municipal Employees Association, which represents white-collar workers; the Deputy City Attorneys Association; and the union representing blue-collar workers, Local 127 of the American Federation of State, County and Municipal Employees.<\/p>\n

In a message to members on the MEA website, union leaders explained the rationale for accepting pay raises combined with furloughs.<\/p>\n

\u201cThe city is unwilling to provide a net pay increase for any employee in the first year of the contract because of the very significant budget deficit and impending service and position cuts facing the city in next year\u2019s budget,\u201d the message said. \u201cYour negotiating team chose the \u2018net zero\u2019 approach because at least employees get 40 hours of time off from work in exchange for the \u2018net zero\u2019 and when the mandatory furlough goes away the pay increase stays for the rest of this contract and the rest of your career.\u201d<\/p>\n

The new retiree health benefit won\u2019t be as generous as the benefit enjoyed by workers who were hired before 2005. Benefits will be 25% smaller.<\/p>\n

Each of the contracts includes larger raises for targeted workers in specific jobs or performing specific duties. For example, the deal with blue-collar workers includes 10% add-on pay to boat operators who get certified as an emergency medical technician.<\/p>\n

Read more G7 leaders back Trump\u2019s plan to end Iran war that faces skepticism at home<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The savings the city will get from the furloughs during the first year of the deal nearly covers the cost of the 2% raises and other benefits employees get that first year.<\/p>\n","protected":false},"author":1,"featured_media":3101,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-3102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nSan Diego OKs new city employee union contracts that combine raises, furloughs - Los Angeles Moving Insider<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/17\/san-diego-oks-new-city-employee-union-contracts-that-combine-raises-furloughs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Diego OKs new city employee union contracts that combine raises, furloughs - 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