San Jose Approves 3-Year Contracts for 4,000 Union City Workers

The San Jose City Council voted unanimously Tuesday, Oct. 27, 2026, to ratify new three-year labor agreements covering roughly 4,000 city employees in two of its largest public-sector unions while a 140-member supervisory union held out for higher wages, even as neighboring Santa Clara issued a request for proposals to build a long-awaited downtown district on nearly five acres near Santa Clara University, according to Wednesday, Oct. 28, 2026 reports from San José Spotlight and ABC7 News.

San Jose Ratifies 3% Annual Raises for 4,000 Local 21 and Local 101 Workers

As reported by San José Spotlight writer Keith Menconi, the three-year contracts approved Tuesday cover the Municipal Employees’ Federation (MEF-AFSCME Local 101) and the International Federation of Professional and Technical Engineers (IFPTE Local 21), which includes the Association of Architect and Engineer Employees, the Association of Legal Professionals, and the Classification of Administrative Management and Professional Employees. Together, those bargaining units represent roughly 4,000 of the approximately 4,200 workers in the Unions for a Better San Jose coalition.

Under the ratified agreements, covered employees will receive a 3% base pay increase in each of the three contract years, a 1% lump-sum bonus in Year 1, and a conditional extra 1% base wage increase in Year 3 if city tax revenues exceed projections by at least $10 million. The agreements also expand longevity pay for employees with more than 20 years of city service and boost paid parental leave to eight weeks at full pay, double the previous benefit.

However, the 140-member Association of Maintenance Supervisory Personnel (AMSP)—which represents front-line supervisors overseeing maintenance of city parks, roads, community centers, and San Jose Mineta International Airport—voted down the tentative agreement and remains in negotiations after contracts expired June 30.

Carlos Murillo, a San Jose airport engineer who attended Tuesday’s meeting, noted that while a narrow majority of his bargaining unit ratified the agreement after months of talks, the raises trail regional living costs and follow a previous contract signed three years ago that delivered raises totaling 14.5%. City Manager spokesperson Demetria Machado stated that the city values its employees and looks forward to returning to the bargaining table with AMSP to reach an agreement within San Jose’s budgetary constraints.

Mayor Matt Mahan thanked union negotiators and city staff, noting that after starting the fiscal year with a $35 million to $40 million budget deficit, the city could have resorted to layoffs or deep service cuts without a balanced agreement. District 5 Councilmember Peter Ortiz added that even during difficult budget cycles, the council stood with workers to secure eight weeks of fully paid parental leave.

Santa Clara Seeks Developer for 300-Unit Downtown Project at 900 and 1000 Lafayette St.

Just northwest of San Jose, the City of Santa Clara has released a request for proposals seeking a development partner for nearly five acres of city-owned land at 900 and 1000 Lafayette St. near Santa Clara University, according to ABC7 News reporter Tiffany Liou.

Reena Brilliot, Santa Clara’s director of Economic Development and Sustainability, said the first-phase mixed-use project is designed to kickstart the rebuilding of downtown Santa Clara, which was demolished during 1960s urban renewal. Under the city’s RFP, the development is expected to include:

• Residential Housing: At least 300 residential units, with 25% designated as affordable housing for low-income households.
• Civic & Cultural Amenities: A two-story food and beverage hall, a town square and arts commons plaza, ground-floor retail space, parking, a cultural arts space, and a theater recreating the historic Santa Clara Theater.

While the site currently houses longtime businesses such as The Hungry Hound and Frozos—buildings city officials expect to demolish during redevelopment—Brilliot said the city wants to support mom-and-pop merchants, several of whom hope to return once the project is built.

Dan Ondrasek, co-chair of the grassroots group Reclaiming Our Downtown founded 10 years ago, welcomed the milestone. “My dream is to have that theater sign once again rise up 40 feet and say ‘Santa Clara,’” Ondrasek told ABC7 News. “This city has been waiting 60 years for the return of their heart.”

Santa Clara will hold a mandatory pre-proposal conference for interested developers on Wednesday, Nov. 18, 2026, with developer selection estimated to take about nine months.