BAKERSFIELD, Calif. (KERO) — The City of Bakersfield has approved a new labor agreement with its largest employee union as city officials continue to navigate a tight budget and an ongoing hiring freeze.
The agreement with the Service Employees International Union covers more than 1,000 city employees, including clerical staff, dispatchers and other frontline workers outside of police and fire.
City Manager Christian Clegg said the agreement reflects the city’s effort to move forward while balancing fiscal limitations.
“What it means for city workers is that we’re moving forward in a good way with our labor agreement,” Clegg said. “It’s important to us to be in good standing with our labor partners.”
Under the contract, SEIU-represented employees will receive a 2% pay increase beginning with their first paycheck in 2026, followed by another 2% cost-of-living adjustment in July 2026.
Clegg said the smaller increases compared with past contracts reflect the city’s current financial reality, as expenditures continue to outpace revenues.
“Our expenditures continued to rise at a faster rate than our revenues, and they’re not keeping up, so we’ve had to do some adjustments and some right-sizing,” he said.
Those adjustments include a hiring freeze that has been in place since July, affecting more than 100 vacant positions. City officials say the freeze has already generated more than $8 million in savings, allowing the city to prioritize employee retention.
“We could probably survive with less total employees if that means we’re able to recruit and retain our existing employees a little bit better,” Clegg said.
The agreement also includes a new holiday closure, with City Hall shutting down between Christmas Eve and New Year’s Day. City officials said the change was requested by employees and does not add additional costs.
Unlike previous negotiations, the contract does not include retroactive back pay. Clegg said the city ruled out retroactive pay early in the process.
“We didn’t want to continue to move forward with having these retroactives,” he said. “We needed to get to a good agreement and then just move forward.”
Looking ahead, Clegg said some frozen positions could begin reopening as early as January, though many will remain on hold as the city continues reassessing staffing levels and programs.
In a statement, SEIU said union members ratified the contract despite uncertainty in state and federal funding.
“Amid uncertainty in state and federal funding, City of Bakersfield SEIU 521 members ratified a new contract that secures guaranteed annual wage increases for the next two years while protecting jobs — demonstrating a responsible partnership with the City that safeguards the essential services residents rely on,” the union said.
Clegg said the agreement also sets the tone for ongoing negotiations with the city’s police and fire unions.
“It represents that balance for the city between living within our means and making space for our employees,” he said.
City officials said negotiations with police and fire unions are still ongoing, though no additional agreements have been brought forward for approval.
Stay in Touch with Us Anytime, Anywhere: