Hayward approves five-year union contract to raise wages and add benefits

The Hayward City Council voted Nov. 12 to approve a tentative five-year union contract that city staff said will move municipal wages closer to regional averages and add several employee-benefit changes.

Jacob (city staff) told council negotiators had met with the union and reached a middle-ground agreement to address "a major pay deficit that we're trying to get caught up on." Key elements include scheduled wage increases, an additional 40 hours of comp time annually (to be used or paid out by year-end), changes to sick-pay payout schedules (delaying payout eligibility but increasing percentages with longer service), adding the day after Thanksgiving to the holiday list, double pay for being called in on Christmas, and an additional vacation bracket for employees with more than 20 years of service.

Derek moved to approve the contract changes; John seconded. The motion passed 3–1, with Christie voting no. Council members said the agreement did not raise wages to the top of neighboring communities but brought them toward an average and that no party got everything they wanted.

Council also discussed a union request to start some of the pay increases Jan. 1, 2026, rather than waiting until July 1, 2026. Staff said the budgetary impact would vary by department (Jacob said the electric department impact would be about $16,000) and committed to present the projected December budget impact so council could decide whether to begin raises earlier.

The contract, as approved, takes effect July 1, 2026, through June 30, 2031, unless council later amends that start date.