Budget committee forwards SFO "Healthy Workers" ordinance after hours of industry and worker testimony

The San Francisco Board of Supervisors Budget & Finance Committee voted 3-0 on Oct. 28 to forward to the full board a proposed "Healthy Workers" ordinance that would require employers covered by the airport quality-standards program to provide qualifying family health insurance or make contributions on employees' behalf.

Supporters, including sponsor Supervisor Rafael Mandelmann, said the pandemic made the change necessary. "This... pandemic has made, more, real and immediate and necessary, the reality of dealing of getting health care to, to workers at our airport and their families," Mandelmann said during discussion. Supervisor Shamone Walton, a co-sponsor, said the ordinance is important for equity and to ensure that "essential workers going into work every day" can cover themselves and their families.

The proposal drew extensive industry opposition during public comment. Paul Francos, chief operating officer at the San Francisco Travel Association, warned that the timing is "very problematic" because the tourism industry has been "completely decimated" by COVID-19 and said the ordinance "targets the travel industry significantly and increases costs, which will result in additional job cuts, decreased services, and increased costs to visitors." JetBlue's Josh Dover told the committee that the cost of doing business at SFO "will be greatly impacted by the proposed Healthy Workers Ordinance," and that higher operating costs could discourage new entrants and reduce competition.

Airlines and trade associations repeatedly disputed the city's initial Board of Legislative Analysts (BLA) estimate of roughly $33 million in annual costs and pointed to an airport estimate of as much as $163 million per year. Airlines for America economists presented other higher estimates and warned of potential service reductions, furloughs and delayed recovery. Airlines for America counsel argued the proposal may be preempted by the federal Airline Deregulation Act, and pointed to a city-estimated increase of "$1.83 per ticket" as an example of an effect on prices.

Workers and community advocates gave countervailing testimony. Luisa Bicancia, who identified herself as an airport worker, described losing family medical coverage when her husband fell ill and said the lack of affordable health care left her family struggling to pay medical bills. Supporters told the committee the ordinance would set a floor for access to care for lower-wage employees at the airport.

Chair Sandra Lee Feuer and the sponsors acknowledged the financial pressure facing carriers but said that the committee must weigh worker access to health care in the midst of a public-health crisis. After discussing proposed amendments from United Airlines that sponsors said could strip coverage from groups the ordinance intends to reach, the committee voted to forward the item to the full board with a positive recommendation. The roll-call vote was Walton: Aye; Mandeman: Aye; Feuer: Aye.

The ordinance will next be considered by the full Board of Supervisors. Committee members said they are reviewing airlines' proposed amendment language and economic analyses and signaled continued dialogue before final passage.