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City Of San Francisco Planning 1,000 More Layoffs

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May 15, 2009 10:46 pm US/Pacific

City Of San Francisco Planning 1,000 More Layoffs

SAN FRANCISCO (CBS 5 / KCBS / AP) ―

Click to enlarge 1 of 1: San Francisco City Hall.

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More than 1,000 San Francisco city workers will lose their jobs in the coming months to help close a budget deficit, the mayor said Friday.

Mayor Gavin Newsom said the layoffs would affect all city departments. The hardest hit will be the Department of Public Health.

The announcement came after the city's biggest union rejected $38 million in wage concessions, which the mayor's office said made additional job cuts necessary.

"Real people that otherwise had their jobs secure will now see those jobs lost," Newsom said.

The Service Employees International Union Local 1021 voted 56 percent to 44 percent to reject an agreement negotiated by union leaders that included keeping a 3.75 percent pay increase.

Local 1021 represents 11,000 health care workers, janitors, security guards and other employees in San Francisco.

Calls to the SEIU for comment were not immediately returned. Union leaders were said to be planning their next move.

The city's $6.6 billion budget has a projected $438 million deficit. That could grow by $93 million if Tuesday's state ballot measures fail.