Board holds Committee of the Whole on Felton Institute labor dispute after multiple NLRB charges; workers and union allege union‑busting

The San Francisco Board of Supervisors convened a Committee of the Whole on April 25 to hear testimony about labor disputes at the Felton Institute, a nonprofit contractor that receives significant city funding. The board scheduled the hearing by an 11‑0 roll call and then heard sworn testimony and public comment detailing claims that Felton interfered with workers’ efforts to unionize and failed to bargain in good faith.

The hearing was called after supervisors and SEIU Local 1021 representatives said the National Labor Relations Board (NLRB) found merit in multiple unfair labor practice charges filed against Felton. SEIU Local 1021 President Theresa Rutherford told the board that Felton engaged in “harassment, lies, and unfair labor practices,” including calling police on pickets, paying staff to drop out of union activity and other conduct she said violates a signed neutrality agreement. Worker Ayla Lorraine described prolonged understaffing and retaliation, saying she had been threatened with police calls and had difficulties obtaining medical leave after union activity.

Felton representatives said they were at the hearing to collect questions from the board and promised to follow up. Sarah Richardson Baker, speaking for Felton, said CEO Al Gilbert could not attend because of serious medical appointments but that Felton had been meeting with the union and in mediation. Dr. Joanna Quiroz, Felton’s chief operations officer, told the board Felton had been meeting with the union “since September” and that the organization had attended a 27th bargaining session that day.

Union organizers and multiple current and former Felton employees described a pattern of conduct they say undermined organizing. SEIU said an NLRB investigation has led to complaints and that Felton had paid a union‑avoidance law firm. SEIU cited a flyer, bearing Felton’s logo, instructing employees “do not sign this card,” and said Felton had given raises first to non‑union staff while withholding promised increases from union members. Union leaders said Felton refused an NLRB‑proposed mediation and instead prepared to litigate the charges.

Supervisors of multiple districts pressed Felton management and city contracting departments about whether city funds were used for union‑related legal fees and about contract monitoring. Supervisor Myrna Melgar, who requested the hearing, told Felton’s representatives she was “deeply disappointed” the CEO was not present and said the board would be watching Felton’s city contracts closely. Members of the board repeatedly asked city departments for greater oversight of nonprofits that receive substantial public dollars.

Department of Public Health staff said DPH annually monitors Felton’s programs and that Felton is not currently on a corrective action plan; they also acknowledged staffing problems that have affected service delivery. Supervisors asked whether the city’s contract monitoring looks at workforce treatment; DPH staff said routine monitoring does not directly review employer labor practices and recommended whistleblower channels for reporting misconduct.

Public commenters — including current and former Felton employees — told the board they were fearful of retaliation, described long case loads and frequent use of agency substitutes, and said promised contractual increases were delayed or withheld. SEIU asked the board to require Felton to honor its neutrality agreement, to bargain in good faith and to stop using city money to defend against union activity.

President Aaron Peskin and other supervisors warned of consequences if the situation continued. The board said it would follow up with departments that fund Felton and would scrutinize future contracts. The Committee of the Whole provided a public forum for multiple statements and concluded with the board taking the hearing record “under submission” and ordering follow‑up inquiries.

The hearing is the latest in a series of oversight interventions by the board after earlier questions, record requests and a budget committee hearing this winter. SEIU and workers said they will continue to press the NLRB and the board for enforcement and for a negotiated settlement.

Actions at the hearing included the scheduling vote to convene the Committee of the Whole and acceptance of testimony for the public record; board members requested follow‑up from city departments and Felton management.