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speaker.gif Labor deal leaves open issues

By Steven T. Jones

Yesterday's joint announcement of a wage concession deal between the Mayor's Office and Service Employees International Union Local 1021 -- the largest union of city employees -- included few details, and sources on both sides have been reluctant to give out much information until the rank-and-file have the chance to review it (they say more details could be forthcoming on the union's website by tonight).

“The goal of this tentative agreement is to protect vital services for San Franciscans, minimize layoffs to employees, preserve the integrity of the collective bargaining agreement, and assist the City with its economic recovery,” read the brief joint public statement.

The Chronicle's Marisa Lagos got a bit more, with unnamed sources telling her the union has agreed to forgo $40 million in promised pay increases over the next 16 months, including raises that were set to kick in this Saturday. While the promise to "minimize layoffs" was in there, the real question is how to do that, including whether Mayor Gavin Newsom will cooperate with the desire by labor and the left for a package of local tax measures later this year.

Given this week's report predicting unprecedented budget deficits for each of the next three years -- reaching a staggering $750 million by 2011 -- there is growing recognition that service cuts alone simply will not solve this city's fiscal crisis.

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