of supervisors understand. some of my colleagues, this is new information for. that we have an increasing number of non-union food providers at the airport and that's a change. can you explain from your perception. we'll ask director about this in a moment. but from your perspective. how could this have happened? i think some folks are shaking their head where there is non-union operators, what? what's going on with that? >> you should speak to this too, lorraine. we are supposed to have labor peace at the airport and supposed to be a condition in a lot of the lease agreements that you vote on and sign off on. the reality is what's been happening at least up until now what's been happening that seems to be a pro form a thing. the language is there, is there is an expectation potentially that they would do labor fees.

>> they are signing -- >> the labor fees and the card check. the silent agreement, they are given the lease, there is no card check executed before they are awarded the lease. once they are awarding the lease, they are in the space. we approach them and this is something that you have done. we have gone and asked them to sign the card check agreements and they refuse and we go and retain outside council -- counsel and they start an intimidation campaign with workers and chase the organizers away. >> that's been made and the workers are scared to talk to the union after it's been

cleared by the bosses that it's not acceptable to go for the union. so there is that and also not made clear for the people getting a lease that workers choose to be part of the union, the workers choose the union that there is a condition of the lease, they need to be part of the multi-employer group. so employer after employer, we find has no knowledge of that. they have no knowledge about the standards that exist at the airport. that family health care that's affordable that is a standard that we've had at the airport and they don't know it. even the nicest employer is like what? it's not like these employers have any idea about family health care. they never pay it. now we are in a conflict

with them right off the bat because they didn't know what they were walking into and they are not prepared to do it. so it's a problem. it really creates a bad dynamic for us to be able to resolve things and have them move forward. and like this one employer bacon bacon, those workers chose a year ago to be union. they signed union cards. those cards, they refuse to let them be counted until january. so this day, these workers don't have family health care. these workers worked through the pandemic, frontline workers who take care of people from around the world. when the mask mandate stopped, a lot of the workers were getting covid and they are bringing it home to their families and they are

infecting their families and that is outrageous. that's the case for these workers. some of them are out on the picket line and they are being told by their employer, you are not union. you can't do this, but they are out on the picket line, the ones that have had the courage to do that in the face of that. >> and there are some as an increasing number of operators who are acting in this way either through ignorance or willfulness of not meeting their obligations and there are people that have been at the airport for a while who are similarly resistant and not recognizing card check and not allowing for organizing, is that correct? >> true. unquirked. finally they have been 20 years at the airport. but still, i would sign the mou and it has not come

back. with those workers, they haven't signed the mou for a long time. the workers signed over an a month ago and they are dragging it out. >> it looks like my colleagues are interested in weighing in. through the president, should i call it? >> go ahead. >> then supervisor ronen? >>supervisor hillary ronen: yes, thank you. i was wondering if -- can come up. i feel guilty about these leases that we approved and nothing can

get passed this committee until workers get treated fairly. can you tell us how you enter into leases with these companies that then play these games and don't abide by worker neutrality, labor peace. >> >> i feel like i really got caught off guard about this whole issue. we are not used to having labor peace. when you look at how the labor is structured, there is the labor peace card check obligation

that's put upon the outlets, the new businesses, part of the problem too is we have a whole host of new businesses at sfo and i think that's caused a lot of that unfamiliarity of what the expectation is. in the lease, it talks about the card process. in the award for the lease is for them to come to a card check agreement. what the lease provides for is the union requests a card check agreement with the operators. if the operators fail to agree to a card check with the union within 30 days, the rule card check, the one that's attached to the lease goes into effect. there is a card check agreement after 30 days when the date is that the union requests to write a card check agreement.

so the next step with that, the card check agreement has to write employees names to the unions and it's up to the unions to actually conduct a ballot with the employees around their desire to be represented by the union. so we have had such stability and three are new. we have been working on a month 1/2 trying to resolve the issue and now have agreed to sign for the unions the mou with the union, so we are going throughout process with these 12 that started out as non-union and let the employees vote what they wanted, what they are representation is. that's the

process that we go through. it starts with a request by the union to have a card check agreement. and there has been no currently no lessee's in violation. one is getting close. the cafe is getting close. if they are non-responsive to provide the names of the employees, the airport will take action against that one outlet. right now, and i feel like part of the problem is we are not used to enforcing the requirements of this because we have worked together for so long and people know what's expected at the airport. so to be honest, when this came up about six weeks ago and this went up from zero to 100 and it wasn't even on my radar and the level of issues that we had with something that worked primarily between the unions and the em

employer group. is there an expectation that the workers should be provided health care for themselves and their family? >> it's an expectation that they honor the obligations, that the workers have that right to first select representation and beyond the obligations of the collective bargaining agreement and that does provide for the health and welfare, those obligations in the collective bargaining agreement. we definitely want to see them have their conversations similar to the airport worker ordinance and what that's provided for those workers. that's been really important. >> i will just end here because i know it's late and many people want to talk, but here is the situation. you are hearing the stories, this is not an

exaggeration, they are sleeping in their cars, showering in the bathrooms at the airport and bringing covid to their families and they haven't gotten a wage increase and health care coverage increases and what are you doing to end this injustice. that's what it is because it's bringing down the esteem and an embarrassment that the airport of the city and county of san francisco treats workers like dirt frankly because that is not humane, not dignified and it's wrong. what are you doing and when i say you, it's you and all of us to make sure that people that are the face of san francisco airport in this city are treated with the respect they deserve?

>> i agree with your comments. they deserve that and in the absence of a collective bargaining agreement, it falls back to the ordinance with the city and county of san francisco to help carry the accountability ordinance. that's a city issue. the airport isn't an island with our own rules and regs. we are subject to the city and county of san francisco. i think that's the right question. what can we all do together to ensure these coverages exist. >> if i can bring up lorraine. what more can we be doing? >> i think i would ask you to look into the the apparatus. there is no question, non-issue,

it's an important issue and what we both said. the airport in the last several weeks, everything i have said is accurate. i think that there has been a real market shift and change and there is a real problem because you have these non-unions in places. they frighten the people and poison the well. that's an issue to be dealt with. as far as the contract goes and the strike and the key issues of this strike, you've got to, that's on this multi-employer group. they are not where they need to be. it's unacceptable for these companies to come in to seek these leases and then nickel and dime or not even nickel and dime frankly, not

spend a cent and be all too happy to let the hotels decide to subsidize their health care. that doesn't make sense. whatever authority and power this body has, we ask that you relieve them of that. i think you do. you have at the end of the day they are tenants. we are working as tenants and you are the landlords. >> may i have a list of all the leases. >> yes, we have that. >> thank you. >> >> supervisor safai? >> supervisor ahsha safai: yes, thank you. first and foremost i want to say to all the workers

that came out today that we stand with you. we know that what you are experiencing is trauma right now to be dealing with trying to ask for basic services while you are coming to work everyday and in many cases as was referenced by some of the leadership, you have been putting your lives on the line for the last four years. literally people have died because of covid and our airports have remained open and one of our economic engines in the entire area of san francisco and you have put your lives on the line, you have served with dignity and respect and all you are asking is for basic human dignity. i want to recognize you first and foremost for all the work that you did and we see you

and recognize and we stand with you first and foremost. as supervisor said, we have the authority and power, and we receive a lot of these leases and i will tell you it sounds like to me we had a problem for a few years at the sf mta in a very similar manner where card check neutrality and labor peace was not being respected. and we do have the ability to write stronger provisions to our leases. it's very disingenuous to have that labor peace upfront, i'm not pointing fingers but once that lease is signed and it is totally disrespected and the labor force

is not getting recognized. i can tell you. i'm very proud and know that many of these folks i represent. i represent so many of these individuals and thank god that years ago that many of these jobs were able to afford to live in nearby homes and many of the other folks that did not have that opportunity were ones sleeping in cars, commuting from long distances. i have to say this, i know for a fact that a good job with good healthcare, with good welfare, with good pension would provide for a stable workforce. we want that stable workforce at our airports. we don't want that turnover and want tremendous customer service and being the face of san francisco at the airport. i think that's also another thing to consider when we are thinking about these things. i would just end, there has been tremendous inflation over the last nine months and i

cannot imagine that there are not evening living wages that predates covid. and not to mention and i'm just going to put this out there, there is also another dichotomy at the airport, we have worked really hard at the budget and finance committee to ensure that our public employees were given a wage increase over a two year period and also not fair for the private sector for our employees to not have that benefit afforded to them in a public servant entity. we need to do better and know that we are going to work harder for you and provide more scrutiny and work with the director at the airport to look into these leases to be sure these labor pieces are respected and we need to bring this strike to a close and

ensure that the employee working group sits down at the table and recognize that this is a high priority for the city and county of san francisco. >> thank you. >> thank you, supervisor safai. supervisor mar? >>supervisor eric mar: thank you, supervisor mandelman. i would like to thank the workers and local 2 members for being at work and being on the picket line all day as well. your dedication in how powerfully organized you are is really inspiring. i know i have been hearing about these problems for a while now for the entire year from workers at the airport, from local two, and this local

and contract campaign and from a couple fridays ago where civil disobedience where we were arrested with a couple of you and that was to try to prevent where we are at today to try to really send a strong message to the multi-employee groups at sfo that this contract needs to be settled and workers need to be made whole for all the difficulty and challenges that they had to struggle through in the past two 1/2 years, really four years when the last raise was, but unfortunately we are here today where there is a strike and again, i'm going to be there and i know all of my colleagues will be there to support you in your actions but we really need the multi-groups

of sfo here and it's bad for the city when this is happening. director, i have a question for you. again this has been building for months, right? at least november of last year. how could you let this happen? why hasn't this been resolved sooner and why wasn't the strike prevented? >> there are two issues, supervisor, thanks. the two issues, the first is the expiration of the collective bargaining agreement agreement that expired in 2019. there is an mou that's in place that the original signing and to get the collective bargaining agreement

and the other one is the outlets. earlier this year i was aware of one that was a problem, i think it was bacon bacon. we heard about this and we sent a letter and we thought the issue was closed. and then up until six weeks ago the non-union outlets was not well understood. we don't get a report, we don't generate a report. this is a relationship between the employers and the union and we weren't getting any feedback that there was a problem brewing until we had a meeting that laid out the sheet with 12 different outlets that may be more than 20 because it also included the clubs, the airline lounges and

then i really understood there was a much bigger issue. ever since that point we have been trying to get through the process with these vendors to facilitate meetings to try to take the an animosity out of the atmosphere and not have it be poisoned. so when the vote is taken by the union there is a reasonable expectation that they are voting how they feel. that's been how we have been involved and really part of the problem is we don't have the right structure to the lease agreement and we don't have the right controls that we should have to monitor and engage. we meet with the unions all the time. we've got lots of unions and why it was surprising to me to go from

0-100 >> i was wondering how did we get here. >> it's destroying the relationship and we sat back and maybe got too comfortable with that. >> thank you. can i appoint questions for the growth of the non-union for service operators. it sounds like there is allegedly widespread violation with the card check new -- neutrality policy. >> first in our review and our city attorney's review there was

not widespread violations of the labor peace. in fact we don't believe there has been one violation. the one that i spoke about was the cafe and there is time blocking that they may be in violation. from how we read the agreement, there is no violation as of yet. their trying to recruit to have that level of representation and coordination with the unions. the enforcement piece i think is a new element that we need to think about in the leases is what does that look like because this is not a relationship that the airport is in. this is a

relationship between the employer group who they are the bargaining body for the restaurants and the union. so i think this is something we need to work on. >> thank you, supervisor mar. supervisor peskin? >>supervisor aaron peskin: thank you for this hearing and thank you to local 2 for being up since 4:00 this morning, to all of you to the director of sfo staff and mr. kevin wesley who i have known along ago from the multi-employer group. we are the landlord. we are the landlord and the charter has very very specific land and we have the

unlimited power of inquiry. so show me the leases, the six leases. i will read some of the names in a minute, but before i do that, let's talk about section 9.118 of the charter. that is the provision of the charter that's been around from a quarter of the century from before my time that says that any contract with anticipated revenue of $1 million or more is subject to approval by the board of supervisors. any modification for amendment or termination, even termination of such a contract is subject to approval by the board of supervisors. any modification is subject to the board of supervisors. any lease of ten years or longer in duration even option is subject to approval by the board of

supervisors. i appreciate you, my existing ten colleagues on this board is i can guarantee you that this board will vote unanimously and i see my colleagues nodding that we will as a matter of policy as the landlords over sfo, as the board of directors if you will, we will as a matter of policy deny lease after lease, lease extension, lease modification, after lease modification until this matter has been favorably resolved. that is how it's going to be. that's what happened as a warning shot a little earlier in today's meeting. that is what is going to happen, 30 of these leases expire in the next two years. some of them have already expired. let me tell you about the $1 million of anticipated rent. the until guarantee of many of these leases is three

and $400,000 a year. if any of these leases get approved by the board of supervisors. if you don't have a contract, nobody is going to be renting nothing at sfo. that's all i have to say. [ applause ] here are the 40 that are expiring in the next 24 months. >> burger joint, technologies, guava and java, jv, post international, marina's cafe, sf food ways llc, ss uncorked llc, taste on the fly in san

francisco, llc, sfo llc, sfp america and tortilla inc. all of those expire in the next 24 months. >> thank you. supervisor. >> supervisor dorsey. [ applause ] i want to echo what my colleague supervisor peskin said what everyone needs to hear even the anonymity of the board of supervisors and i represent a district that is also for convention businesses and sports venues, numerous hotels. i want to do everything i can to be sure we are bringing business and tourism back, conventions back to san francisco. but i am determined that is not going to be something that we are going to accomplish on the backs of working people and absolutely

lock step with my colleagues here. i want to thank supervisor mandelman for hosting this and want to thank you for being here and for your patience. i wanted to say it because i think it needs to be heard by the employer groups especially. this board is going to be with you. i want to be sure we get back to those days like we had in 2019 when there were 26 million visitors. if we are going to be able to do that, we have to make sure that the people who are doing the work of sfo, are serving the travelers are paid fairly, and if you are not getting a raise in four 1/2 years, is clearly unfair. we are with you and thank you.

>> thank you, supervisor dorsey. [ applause ] >> supervisor dean preston: thank you for your leadership on this and president walton as well. i will keep it short because colleagues have said the many things i have been thinking as well. i want to also add my voice to i think it's one thing for the supervisors to say, all colleagues feel a certain way and certainly great to hear from all colleagues. there is no place for not complying with these provisions of these agreements all of these that supervisor peskin has explained in detail come back to this board and this body for approval. and i think that especially after these last couple years. it just breaks my heart that we are here. we had so many workers here earlier on strike at kaiser, we have so many workers here fighting for the most basic things and

respect and in a workplace just after what we as a society have been through for the last two years that we are forcing folks to be, to strike just for this basic respect is just, i'm sorry you all have to be here. i thank you for going out on strike for being here for waiting the hours to speak with us, and we stand with you and we'll be with you and we'll be making sure at minimum that where the city holds these leases that they are complied with and will be coming through this body and we'll make sure that they comply with this. >> thank you. i have a question later. we should probably let folks speak through public comment. before we do that, i would like

to thank the group for being here. you did better than kaiser in that regard. you don't have to say anything but if you wanted to, i will afford you that opportunity. >> thank you, president walton and supervisors, i will speak for the multi-employee group. the first gentleman that spoke, spoke about inflation, that's the core issue for us. we have no issue with the union, and we have no issue with the airport. our problem is if you look at history and supervisor peskin will remember when this happened. more than a decade go, the policy went above 10 percent that comes from the people that

have to distribute the food through the airport and the acknowledgment that we know are going to work with union wages and union benefits. that 10 percent going to cover that. and as wage inflation hit, the airport was kind enough to give us the surcharge to close the gap on the negotiations that we had. at that moment in time, san francisco did not have surcharges on the menu. we had basically 12% above the street. what's happened is and you can look at the restaurants. you can look at one market and around 40 years, they are at a 4% surcharge, the market that's been there 15 years 5% surcharge. the cafe, they are at 6% surcharge. the largest organized restaurant in san francisco is at 5%.

what's effectively happened at the airport is rather than restaurants on the street raising their prices, they have raised the surcharge and we are not allowed to take this surcharge to raising prices. and you have us at this vice grip. we have lost five percent of that in surcharges and our ability to go over the street right now is at seven percent. it's a real big problem. we have talked about this at the airport and talked about this issue and we are making progress on the issue. i think what's happened is the intent. los angeles

county -- lax is at 18%, san diego is at 15% surcharge. i believe we can move on to a session and move away from this crisis. we are in a vice grip here, sfo is through june when they publish the numbers is at 60% of employment from 2019. so we haven't seen numbers for july and august, but our numbers, we are at 65% for the year. we are down to third, there is major inflation in food and we have raised some wages. i think our only message to you tonight is we understand the environment that we choose to work in. there is no one over here here tonight that has waited a long time to be heard that is breaking rules and we've got some new members of our group that are clearly breaking the rules and probably

intentional and probably lack of education and when they do get card checked they let us know and they let us know what they are walking into and we are happy to work with them long-term so when people bid on their leases, we tell them these are the rules for the road and you should get organized at sfo. we respect the workers and everybody has been here a long time. it's just important that one problem that we have is we have been strangled with street pricing policy and never thought that they would be street pricing and our mark is by point. i thought the last discussion we had with the labor movement and we showed labor movement. if we can get some help in modernizing this street policy, we can do this in one session. thank you very much for your time. >> thank you, mr. presley. are

you here to answer questions as well. a couple things that did not sit well with me, but you make the statement that you make connection with folks after they sign leases. we need to do something as a city to be sure that people are very clear before they are offered in san francisco to sign the lease. that should be upfront and know exactly what the demand is of our employers whether they are at the airport or operating within these city limits. i do since you gave the data around the financials, etc. what is your solution to continue to lose money everyday while folks are outside on the street striking? what is your solution to helping to solve this problem? >> we would prefer to have labor harmony, and we think that all

parties to the airport and the revenue that we provide them, the workers and the pay they get and us giving a fair markup against street, all that has to come together and this can go away for years. that would be my solution. >> thank you. >> supervisor peskin? >>supervisor aaron peskin: thank you, supervisor walton. mr. presley, i have known you for years and honest broker and good at what you do. i think the airport -- nicely said and it should not have come to this and whether it's staff that worked with local 2 that is no longer with the airport, this should have been resolved. >> you are absolutely right. we are 3 plus 10 and there is room

for an airport part solution. i see just what you see which is absolutely no reason that you can't get in a room and the airport has something to give. your employer group has something to give. as you said local 2 has already given a lot and you have to sit down and work it out and we want to see this strike finished. >> i think you got two percent to move. wrap it up tonight. >> thank you, supervisor peskin. i don't see anymore questions from colleagues. >> i would like to give director sataro the opportunity. i know he said this was just brought to his attention and more recently caught off guard but that has been part of the negotiations here at city hall. what is your

anticipation being involved in these negotiations now that you are aware of this situation and what was described by mr. wesley in terms of the rooms that they need that they aren. what role can you play as director of the airport and working with negotiating with them and bringing this to this body? >> thank you, supervisor. there was very little movement and started about an a month ago really getting back together post covid trying to get to a collective bargaining agreement. so there were iterations of just both parties. both parties just no movement by the parties. i brought them together and said this has to change, we have to see movement. you have to get a new collective bargaining agreement. a couple days after that, they had a session as mr.

wesley described, there was movement from both sides. after that i expressed a willingness for the airport to participate as well and i recognize we were below other airports and below this city. we expressed that we should participate as well, and now we tried to get something going before the strike. i think there was so much momentum around this strike. we didn't have a meeting before this strike. so all parties understand the willingness to move and contribute towards that. a lot of work has been done and still more work to be done by the restaurant as well. >> do you plan to host some of these negotiations to bring this session to close within the next day or two? >> i asked both sides to be prepared after 1:00 tomorrow as long as it takes to get to an

agreement, stay in the room up at the airport fifth floor administrative offices. >> to be clear on the record, i hear you saying that the airport now has a role to play on moving from your end because it sounds like what i heard described by the employer group on the difference between 12-18% and other competitive airports is significant. it sounds like the union has made some movements and employers seem to put something on the table. it would be great to hear that the airport is committed to getting this resolution resolved. >> we are, supervisor. thank you. >> >> supervisor shamann walton: thank you, supervisor. >> supervisor ahsha safai: thank you director and mr. wesley and ms. powell. i think we should open this up for public comment. if folks that are in chambers, if you would like to sign up to that side of the room.

and if there isn't anyone? >> madam clerk, you can take it from here. >> thank you, mr. president. public testimony is now welcome. we will first hear testimony from those present in the chamber. please lineup on your right as mr. mandelman stated and then we'll hear from those who joined remotely. we do have interpreters still with us from the office of civic engagement and civic affairs and we have natalie and marty dickinson from land associates. if you can begin to let speakers know in their language. >> [foreign language]

>> thank you, madam clerk. >> thank you. >> marty?

>> thank you both for your assistance this evening. we are going to welcome our speakers in line. if there are other languages speaking, our interpreters will assist you. >>

public speaker: thank you. this is all well and good. let's assume the workers get to strike and get a huge raise. i want it to be a huge raise. and they get the benefits of their pension covered. that's only part of the equation. the only part of the problem and why i'm here is for decades in this room, the folks who are sitting in these seats and the folks who sat in these seats for the past 20 years, i just want to say shame on people. there is not an acceptable reason why these folks can't live 20 minutes from the airport. the reality is these folks live two hours from the airport which makes it impossible to get home in a timely manner. a lack of affordable family housing in this city has driven this

problem to this point. that is the other happen of the education, so until we can get more help for this housing, a lot of this is lip service. thank you very much for your time. . >> is there any other public comment on this matter? we will go to remote callers, there are three on the queue.

public speaker: good evening supervisors, speaking on behalf of locals throughout the state of california. many of those sister locals, i would remind everybody that have the ability to deliver those supplies each and everyday. the system also represents to this local 65 and both the thousands of women and men and as such we stand completely in solidarity with local 2 and share the frustration of all the members at local 2. just as local 2 has been confronted with these problems, the teamsters also have been confronted for years and the private vendors who have been awarded leases, these vendors

are national and international corporations that are looking to squeeze profits while ignoring the real cost-of-living of workers in the event of sfo. we will continue to support local 2 at sfo fighting for workers and with those who stand in solidarity with labor in san francisco airport. thank you. >> thank you for your comments this evening. if you are one of the four listeners who would like to provide public comment, please do so.

>> thank you. i just wanted to let all the workers know that although some of us because we work in the hospital couldn't be out on the line, that we support you 100%. i thank the board for the action that they are taking. >> >> thank you, brenda for your comments this evening. >> all right. mr. atkins, let's hear from our next caller. >> public speaker: the supervisors and management -- [inaudible] >> we are having trouble hearing you. >> i said you shouldn't be

shocked about the conditions at the airport. [inaudible] london breed, and the fact that they don't impress their own budget regulations [inaudible] -- >> sir, i have to interrupt you, sir. we just paused your time. you must be on a mobile phone. it is cutting in and out and we are not getting your entire comment. i'm afraid to say you might want to hang up and call back in. why don't we go to our next speaker and give you the opportunity to call back in that way we are actually hear what you are saying.

let's go to our next caller. >> madam clerk, there are no further callers in the queue. >> mr. atkins, if you don't mind to wait for a moment in case that individual will call back. >> okay, sir, did you want to give it one more try? you have a minute left. >> >> i'm going to be on another phone. i just called in right now. >> good. please continue. >> >> sir, perhaps your television, you are listening to your television, please turn down your television.

we can hear you. >> i think it is no surprise to hear about management for what's going on. this union issue has been going on for years at the airport. why are you surprised? basically the airport is allowing this and that's what's going on at the airport. and it shows the tax on workers and that it's not just at the airport. it's with kaiser and it's happening with capitalism in this country. i think the workers need to all unite. i think what happened tonight is really important. at the we need all the workers at the airport to join together. many is -- it's not going to happen in this country because of the nature of the system. the system for profit and that's why

people can't buy homes because the developers control the city and they control the development and they don't want track housing. the idea that you are going to get billionaires, and the workers need to unite. thank you. >> thank you for trying and for your comments. >> >> >> >> >>