Houston Mayor John Whitmire has reached a tentative agreement with the HOPE AFSCME Local 123, Houston’s municipal employee labor union representing the more than 11,000 non-police or fire department members.
“It’s an exciting day to get a settlement on a contract that treats all Houstonians fair but particularly emphasizes the importance that our municipal employees play in this great city,” Whitmire said at a press conference announcing the deal.
The 3-year contract includes an increase in the city’s $15 per hour minimum wage to $16.75 this year, $17.25 next year, and $18 in 2026, the final full year of the contract. Other perks include longevity pay, bilingual pay, across-the-board raises of 3.5 percent in 2025 and 2026 for employees who earn above minimum wage, and five years of healthcare for retirees above age 60.
Given recent conversations about a tax increase in Houston to provide additional budgetary relief, Whitmire said the first-year costs of this agreement were factored into the current budget recently approved by the city council, and the other terms will be met annually.
The tentative agreement will go to HOPE members for approval before the City Council Labor Committee considers it. If approved by both, it will move to the full city council for consideration. This agreement comes months after the mayor reached a contract agreement and settlement with the Houston Firefighters, and negotiations with the city’s police union are expected to begin next year. If approved, it would go into effect immediately and expire in the summer of 2027.
HOPE’s president, Sonia Rico, said, “We went to the negotiation table and said the best is yet to come, and it came true for us…we are the real heroes.”
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