San Jose City Administration and the San Jose Police Officers’ Association (POA) agreed on terms of a tentative agreement for a new contract that will save the jobs of 156 police officers, City Manager Debra Figone announced today.

The complete terms of the tentative agreement can be viewed on the City’s website. These include:

  • A 10% reduction in total compensation ($12.9 million savings)
  • Allows the civilianization of 20 positions
  • Allows the City to outsource policing at the Airport
  • Negotiations will continue on pension reform and sick leave payouts

“This was the result of two sides being committed to the same goal and refusing to give up,” Figone said. “This agreement keeps 156 police officers on the street protecting our city, and it meets the Council’s goals of a 10% reduction in total compensation and an agreement to keep working on pension reform.”
With this agreement, the City has met two critical goals of the City Council:

  1. a 10% reduction in total compensation to lessen layoffs and reduction of City services; and
  2. maintain the ability to negotiate retirement reform with all bargaining groups.

The tentative agreement was reached this morning after discussions on Thursday led to new language related to the POA’s optional retirement plan. Under the new terms, the proposal can be implemented if the IRS approves the POA’s proposal and 40 percent of the POA’s membership agrees to move into the new plan. If fewer members sign up, it could still be implemented, but only if both the City and the POA agree.

“This wouldn’t have been possible without the professionalism and commitment of the POA leadership,” said Employee Relations Director, Alex Gurza. “Without that this deal would not have been possible.”

The agreement also leaves to an arbitrator the decision of whether the 10% reduction will be ongoing or one-time in nature. If the arbitrator decides the reduction should be ongoing, the term of the contract will be for two years. If the arbitrator decides it should be one-time, the contract term will be for just one year.

“I’d like to thank the men and women of our police department for stepping up to save the jobs of their fellow officers and the critical public safety services they provide to our community,” Mayor Chuck Reed said. “I realize that these concessions are a significant sacrifice and I truly appreciate the tireless efforts of both the POA and the City’s negotiating team to reach an agreement. I’d also like to extend my thanks to the entire City workforce for accepting a 10 percent reduction in compensation and helping the City avoid even further cuts during this extremely tough budget year.”

The tentative agreement, which is subject to ratification by the POA membership and must be approved by the City Council, will be put on the June 14 Council Meeting agenda for consideration.