San Francisco teachers end strike with 5% rise and funded healthcare: What you need to know about the $100M deficit

SFUSD schools reopen after historic teachers strike: How five per cent pay rise and healthcare deal was reached. (AP Photo)

San Francisco teachers have ended their first strike in nearly 50 years after reaching a tentative agreement with the school district, the Associated Press reported. The four-day walkout affected all 120 public schools, leaving approximately 50,000 students without regular classes.The agreement includes a two-year pay rise of five per cent and fully funded family healthcare starting January 1, 2027, marking a historic change for the United Educators of San Francisco (UESF), as reported by the Associated Press. School district officials said schools would reopen to staff immediately and to students following the Presidents Day and Lunar New Year break.Key terms of the agreementThe two-year tentative contract provides the pay increase over two years and addresses long-standing health coverage concerns. As quoted by the Associated Press, SFUSD Superintendent Maria Su said, “This is truly monumental. For the first time in our school district’s history, we are providing full family health benefits.”The union had highlighted that many teachers faced monthly costs of at least $1,200 for family health coverage, contributing to staff departures. The agreement also includes protections for immigrant students, staff training on federal immigration enforcement, and a commitment from the district not to use artificial intelligence to replace teachers, the Associated Press reported.Financial implications for SFUSDThe agreement comes as SFUSD faces a $100 million deficit and remains under state oversight due to a long-standing financial crisis. Officials said funding for family health plans would be supported by a special parcel tax, while the pay rise falls within the constraints of the district budget, as reported by the Associated Press.A neutral fact-finding panel had recommended a compromise of a six per cent salary increase over two years, largely siding with the district’s financial concerns. UESF had initially requested a nine per cent increase, which would have required an additional $92 million annually, the Associated Press reported.Broader impact and next stepsThe agreement must be approved by both the San Francisco Board of Education and a majority vote from union members. Teachers in other major California districts, including Los Angeles, were preparing for potential walkouts as similar negotiations unfolded. San Diego reached a contract settlement, averting a strike for the first time in 30 years, according to the Associated Press.The resolution ends the immediate disruption to classrooms while addressing union demands for pay, healthcare, and student protections. The agreement sets a precedent for ongoing labour negotiations in California’s public education system.