AC TRANSIT BOARD APPROVES LABOR AGREEMENT WITH AFSCME LOCAL 3916

AC TRANSIT BOARD APPROVES LABOR AGREEMENT WITH AFSCME LOCAL 3916

The new contract aims to stabilize the workforce, while creating responsible fiscal management

OAKLAND, Calif. - The Alameda-Contra Costa Transit District (AC Transit) Board of Directors, by a majority vote, approved a new collective bargaining agreement (CBA) covering more than 300 employees represented by the American Federation of State, County and Municipal Employees (AFSCME) Local 3916.

The agreement was recently ratified by Local 3916 members, which includes administrative employees, supervisors, and managers. Combined with the Board's formal approval on Wednesday, the ratification represents an important investment in the skilled workers supporting AC Transit's round-the-clock operations, including planning, innovation, emergency response, and other essential functions.

The new agreement includes phased wage increases intended to help employees keep pace with rising living costs, including 3 percent increases in the current fiscal year, FY 2027-28, and FY 2028-29. The contract also includes an adjustment to on-call pay, helping ensure qualified employees are available to respond when unexpected situations arise.

"This agreement reflects our commitment to the people who make our Transit District work every day," said Board President Diane Shaw. "Even in a challenging fiscal environment, we are balancing responsible stewardship of public funds with the need to attract and retain the experienced professionals who serve our riders and East Bay communities."

The newly approved agreement comes at a critical time for AC Transit as the District works to address an estimated $200 million budget deficit projected over the next four years. By helping reduce turnover, strengthen employee retention, and provide greater certainty around labor costs, the agreement supports more predictable financial planning and long-term organizational stability.

"Rather than absorbing the full cost immediately, phased wage increases allow us to spread expenses over time," said Board Vice President Murphy McCalley. "This well-established approach to labor cost management provides greater budget predictability and helps AC Transit better manage limited resources."

In addition to compensation improvements, the agreement expands opportunities for employee engagement and collaboration. The Labor Management Committee (LMC) will now include a greater role for Local 3916 representatives in providing recommendations related to the District's use of contract workers, creating additional avenues for employee input and dialogue.

The agreement also strengthens workplace safety through the introduction of new illuminated safety equipment. The enhanced gear will help improve visibility and protection for employees working around buses, traffic, maintenance equipment, and in other low-light environments.

Together, these improvements support safe operations, reliable service delivery, and responsible long-term financial management.