Saying that the region is too expensive and that they haven’t received a net pay raise in years, members of the Sunnyvale Employee Association held a rally near city hall Feb. 15 demanding an increase in wages.
Roughly 100 workers from across the city’s government—administrators, planners, engineers, public works maintenance, water pollution control, civilian support for the department of public safety and more—came armed with signs in the hope of getting what they say would be their first raise in five years.
The scene played out during a fact-finding hearing in which SEA and the city provided information onwhy their respective bargaining positions should prevail. The group’s president said if both parties eventually do not come to an agreement, the bargaining group could consider a strike.
Workers say their wages have failed to keep up with the rising cost of living in the region.
“We just want a fair raise. We gave up raises a few years ago when times were tough,” said Ray Hernandez who works in the public works department.
Hernandez added that his and his peers’ pay isn’t competitive with the salaries in nearby cities.
The fact-finding hearing was another step in negotiating a labor agreement that expired in June 2015. Since that spring, the city and SEA have held 22 bargaining sessions but have been unable to reach an agreement, according to a statement from the city.
Both sides provided information at the hearing to a third party who will come back with a recommendation some time in April, according to SEA.
According to the city, SEA employees earned an average of $123,714 including wages and benefits in the last fiscal year. The city is proposing a 10 percent wage increase on top of what SEA employees currently earn. The SEA is requesting a 20 percent increase, but SEA leaders say that in terms of net pay, they would be taking home 4 percent less in both cases due to CalPERS pension employee contributions. SEA members will continue to pay the same 4 percent into CalPERS under both proposals.
According to union spokesman Dustin DeRollo, most employees fall under the PERS pre-state pension reform category, for which employees’ contribution is 8 percent of their pay. The city currently pays 4 percent of that contribution and employees pay 4 percent.
DeRollo says an increase from 1 percent in 2013 to the current 4 percent coincided with a 3 percent wage increase in 2014, so the majority of SEA members see it as a wash.
SEA members argue that, when taken with the 4 percent PERS contribution, the city is offering a 6 percent pay increase while they are asking for a 16 percent net increase. DeRollo also points to a 14.2 percent cost of living increase in the region in the last five years.
According to a city statement, the 20 percent wage increase the SEA is requesting would “jeopardize (the) city’s financial sustainability.”
City officials maintain that SEA employees receive compensation that is “competitive regionally” and “consistent with the compensation packages of other city employee groups.”
“Their current offer is gonna bring us 6 percent over 7 years, which will not get us to market average in a place nationally renowned for its prices,” said union president John Simontacchi. “Our families have been forced to move out of the area to raise their families. They can’t afford to live here.”
SEA represents roughly 485 employees in 170 different job classifications and is the largest employee association working for the city.