Foster City Reaches Labor Agreement with Police Officers Association; Approves Updates to Management Employees Compensation Plan

For immediate release: November 2, 2021

Contact: City Manager Department, (650) 286-3220, manager@fostercity.org

The City of Foster City is very pleased to announce that a new employment agreement has been reached with the Police Officers Association (POA) and updates have been approved for the unrepresented Management Employees. According to terms of the two-year memorandum of understanding with the POA and the Management Employees Compensation and Benefit Plan, workers will receive an across-the-board increase to base salaries for all classifications of four percent retroactive to July 1, 2021. Effective July 1, 2022, an across-the-board increase will also be applied to base salaries for all classifications according to the Bay Area consumer price index with a minimum of three percent and a maximum of five percent.

“My fellow Councilmembers and I are extremely excited these dynamic agreements have been reached,” said Mayor Sanjay Gehani. “They are a testament to how much we value our great employees and the incredible service they provide the residents of Foster City.”

Vice Mayor Richa Awasthi shared similar sentiments, stating “I want to express my deep appreciation for all the hard work that went into the negotiations yielding these fair, reasonable, and well-deserved agreements for our dedicated and talented Foster City staff.”

Both the Memorandum of Understanding for the POA and Compensation and Benefit Plan for the Management Group are reflective of a $631,597 total investment from the City to its employees. “Public safety is a top priority of the Council, and these agreements help assure that the City of Foster City will be able to retain our amazing Police Officers and dispatchers as well as our exceptional Executive and Management employees,” said Councilmember Jon Froomin. 

Effective January 1, 2022, the City’s contribution toward the Flexible Benefit Plan will be increased by 12.5% and effective January 1, 2023, the City’s contribution toward the Flexible Benefit Plan will be increased by the percentage increase in the CalPERS Kaiser Basic Premium Region 1 rate for public agencies. All Classic CalPERS member employees of the groups will contribute 0.5% of wages towards the Employer’s CalPERS contribution rate, effective April 1, 2022. 

The City Council expressed how it believed that the terms of the new labor agreements would help with recruitment and retention in a tight labor market. “We are proud to reach these critical agreements, which we are confident will be important as the City of Foster City works to preserve its incredible workforce and looks to expand the talent pool through future employee recruitment,” said Councilmember Sam Hindi.

Beyond base salary amendments, the arrangements also grant a one-time COVID Recognition Bonus of $2,000 for all employees in the group who are employed by the City on the date of approval. “The City Council understands that the pandemic has been an extremely trying period for everyone, including our talented City staff,” said Councilmember Patrick Sullivan. “We believe these agreements recognize that hardship and hope they ease the process as our community continues to recover.”

“We are committed to preserving a culture of organizational excellence and these agreements demonstrate the City Council’s commitment to building a world-class team of workers and employees who provide excellent service for everyone who lives, works and plays in Foster City,” said Interim City Manager Kevin Miller.

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