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City of San José & Eight Federated Employee Unions Reach Tentative Agreement on Alternative Pension Reform Settlement Framework

December 4, 2015 by

San Jose, Calif. – The City of San José has reached a tentative agreement with eight of the nine bargaining units representing 99% of Federated (non-sworn) employees on an alternative pension reform settlement framework.  The agreement, if ratified by union memberships and approved by the City Council, would generate significant savings for San Jose taxpayers and provide the foundation for San José to continue restoring services. 

The agreement also calls for proceeding with both a quo warranto process through the courts that would immediately implement the Alternative Pension Reform Settlement Framework, and a ballot measure in November 2016 that would supersede Measure B, which was passed in June 2012.   The agreement follows a similar framework that was agreed to by the City and the San José Police Officers Association and San José Firefighters, IAFF Local 230, in July this year.  Together, the agreements will save San José taxpayers nearly $3 billion over the next 30 years.

Note: the bargaining unit that represents the City of San Jose’s building inspectors has not agreed to the alternative pension reform framework.

Statement from Mayor Liccardo    

“I am extremely pleased that we’ve reached an agreement that secures nearly $3 billion in long-term savings and will help us restore city services and our workforce in a fiscally-sustainable manner,” said Mayor Liccardo. “I’d like to extend my deepest gratitude to our City’s and our employees’ bargaining teams for spending countless hours to reach a compromise that benefits both San Jose taxpayers and our dedicated public servants. This agreement will help us turn the page on the challenges of the past and build a foundation for future collaboration.”

Statement from Lamoin Werlein-Jaen, IFPTE Local 21 Lead Representative

“This tentative agreement sends a message that city leaders value the men and women who deliver critical services to the residents and businesses of San Jose. I want to thank Mayor Liccardo, the City Council and City Manager Duenas for their leadership and for joining us in putting the rancor and discord of Measure B behind us all.  It’s now time to begin restoring city services in the same collaborative manner that brought about this agreement.”

Statement from Yolanda Cruz, President AFSCME Local 101 President

“We negotiated a settlement that is fair for all parties. Collaborating allowed us to begin rebuilding trust between the city workforce and city leaders so that we may collectively focus on delivering high quality services to the residents we serve.   I want to commend the leadership of City Manager Norberto Duenos.  His commitment and willingness to explore all options and genuine concern for the City workforce were instrumental in moving toward this tentative agreement.”

Statement from City Manager Norberto Duenas

“I deeply appreciate the dedication, hard work, and time that our employee groups gave over the past several months to achieve this agreement. Their outstanding commitment to find practical solutions that can meet our mutual goals was essential.  We can now focus on our future, together, so that we can serve the people of San José and strengthen our high quality workforce.” 

Note: Copies of the agreement and related fact sheets / staff reports will be available at today’s press availability and posted online by early afternoon

Media Contacts:

David Low, Office of Mayor Liccardo: 408-535-4840

David Vossbrink, City Manager’s Office: 408-535-8170

Tom Saggau, Saggau & DeRollo (on behalf of city employee unions): 408-209-6813

Media Reports:

The material on this website is provided by Beeson, Tayer & Bodine for informational purposes only and does not constitute legal advice. Readers should consult with their own legal counsel before acting on any of the information presented. Some of the articles are updated periodically, and are marked with the date of the last update. Again, readers should consult with their own legal counsel for the most current information and to obtain professional advice before acting on any of the information presented.