David Nerhood, a financial analyst with the Department of Transportation, said colleagues can often find better pay in neighboring cities for jobs with the same or lighter workload.
“San José has become what we call a training ground,” Nerhood said. “What inevitably happens is we train people in doing whatever they’re doing for this particular city, and it’s great training … it’s complicated work and we’re not getting benefits or pay commensurate with these other positions.”
Last week, the City Council returned from summer recess earlier than expected to hear an update on the negotiations from City Manager Jennifer Maguire, who has led bargaining with the unions.
Mahan said San José is constrained by its tax base, which is smaller on a per-capita basis than most neighboring cities. A 7% wage increase in the current fiscal year would require changes to the budget passed by the council in June, Mahan told KQED.
“If any of my colleagues want to go higher than a 5% raise in this fiscal year, they’re going to have to point in the budget to what they want to cut,” Mahan said.
The mayor left the door open to one-time bonuses or higher raises for union members tied to the city’s revenue in 2024–25 and 2025–26.
“In years two and three, if our revenue comes in higher than expected, I think it would be appropriate for us to have a modest increase that’s automatically triggered if there’s more money,” Mahan said.
On Tuesday, the council could authorize the city manager to increase or amend the city’s offer. Attorneys working for the city estimate that the cost of a 1% wage increase to the four bargaining units is $3.56 million.